Healthcare IT News - January 2008 - (Page 39) www.HealthcareITNews.com vENdoRS healthcare system,” said Allscripts CEO Glen Tullman. “This combination provides significant leverage for each of our product offerings and broadens Allscripts relationships in the hospital market at a time when hospitals are becoming more important influencers in the Electronic Health Record sales process.” Late last year, following changes to the federal Stark regulations which allowed hospitals to assist affiliated physicians in adopting EHRs and electronic prescribing systems, Allscripts saw a surge in business as hospitals sought out the company to help them connect to outlying physicians’ offices and clinics. In addition, the federal government and other stakeholders have proposed requiring the automation of Medicare patient information exchanged between hospitals and providers to whom discharged patients are referred. ECIN, which generated estimated revenues of approximately $19 million in 2007, offers a Web-based software-as-a-service product that helps automate and streamline the care management process in hospitals, January 2008 ■ Healthcare IT News 39 from admission through discharge. It has a client base of more than 400 hospitals and nearly 5,000 postacute care facilities. When combined with Allscripts’ Canopy care management solution, the company will have a footprint in nearly 700 hospitals nationwide, as well as a broad array of post-acute care facilities. “Allscripts and ECIN provide a broad suite of solutions that will appeal to hospital executives, who are increasingly focused on creating a seamless connection to the ambulatory physicians who provide referrals, and to the post-acute care facilities that accept many of their patients,” said Jeff Surges, ECIN’s CEO, who will head Allscripts’ new Hospital Solutions Group. According to Allscripts, a 2006 study by Investor Group Services estimated that the market for care management and discharge planning software in hospitals considering automating those functions would generate between $300 million and $400 million in recurring fees. ■ More at HealthcareITNews.com e Connect: Market 0108 markET Continued from page 1 combine ECIN’s offerings with Allscripts’ emergency department information systems (EDIS) and Canopy care management solution. “Our acquisition of ECIN represents the convergence of two market leaders and will help connect hundreds of hospitals and thousands of post-acute care facilities to our network of ambulatory physicians, bringing us one step closer to our vision of a truly interconnected ● dIrECTors Continued from page 36 company, having identified it as a non-core holding. That prompted MedQuist officials to announce on Nov. 2 that they would evaluate the possible sale of the company. One week later, the three independent members of MedQuist’s board – N. John Simmons Jr., Richard H. Stowe and John H. Underwood – abruptly resigned. The company said the resignations were the result of a disagreement between the three and the company over the company’s reaction to the Philips announcement. Some minority shareholders then petitioned the company to appoint a new board of directors with no direct connection to Philips, saying the company’s “exploration of strategic alternatives” may cater more to Philips’ interests than those of MedQuist’s shareholders. Costa Brava Partnership III, L.P., a Boston-based investment fund with a 5.2-percent stake in MedQuist, sent a letter to shareholders expressing concern over the company’s strategy and put forth a separate slate of candidates with no connection to Philips. In response, MedQuist noted on Jan. 3 that only two of the board members, O’Donoghue and Schwarz, are new to the board, having been appointed as independent members last Dec. 7, and neither was on the list proposed by Costa Brava. The other four, all of which have connections to Philips, were retained. MedQuist has applied for listing on the NASDAQ Global Select Market. The company’s common stock has traded on the over-the-counter “Pink Sheets” market under the symbol “MEDQ.PK” since June 16, 2004, when its common stock was delisted from the NASDAQ National Market. Philips purchased 60 percent of MedQuist shares for $1.2 billion in 2000. It later bought 10 percent more. In 2004, MedQuist was accused by an employee of improperly charging some of its customers. The company conducted its own internal investigation and switched to a new billing methodology. It also weathered investigations by the Securities and Exchange Commission and the U.S. Attorney’s Office in Massachusetts. Last March, the company agreed to pay $7.75 million to settle a class action lawsuit brought by shareholders. ■ More at HealthcareITNews.com e Connect: DireCtorS 0108 Thomson Healthcare The right growth strategy isn’t always easy to see. Whether you’re a healthcare provider, employer, health plan, life science company, or government agency, knowledge and insight from Thomson Healthcare can help you develop a plan to reach new heights in clinical and business performance. What will you see when you work with us? Take a closer look. Stop by booth #3362 at HIMSS or visit www.thomsonhealthcare.com/growth6 Thomson Healthcare. From Insight to Action.™ e ● Connect: tHoMSoN 0108 ©2007 Thomson Healthcare. All rights reserved. ● http://www.HealthcareITNews.com http://HealthcareITNews.com http://www.thomsonhealthcare.com/growth6 http://HealthcareITNews.com http://www.thomsonhealthcare.com/growth6 http://www.healthcareitnews.com/eConnect.cms?id=8479
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