Healthcare IT News - September 2008 - (Page 39) www.HealthcareITNews.com vENdoRS istics and requirements of each,” said R. Kerry Clark, the company’s chairman and chief executive, in a press release. “As we now consider a spin-off of our clinical and medical products businesses, our goal is simple: to have two thriving businesses, delivering maximum value to customers and shareholders over the long term.” During an August conference call with investors, company officials forecast fiscal 2009 earnings of $3.80 to $3.95 a share. It predicted earnings from its drug-distribution unit could range from no growth to a 5 percent loss, while the clinical and medical products units, the ones it may spin off, are expected to grow by more than 20 percent. Chief Financial Officer Jeffrey Henderson said the company is expecting “relatively weak” earnings of 70 cents a share for the current quarter, well below analysts’ estimates of roughly 94 cents a share. Henderson said less-profitable contract renewals, increased tax rates and additional spending September 2008 ■ Healthcare IT News 39 spINoff Continued from page 38 includes the company’s network of pharmaceutical and medical product distribution centers and nuclear pharmacies, and the clinical and medical products segment, which includes products for infusion, medication dispensing, respiratory care and infection prevention. The company also announced that it would cut about 600 jobs, or 1.5 percent of its workforce. This month, the company announced the sale of its MedSystems business, which makes enteral devices and airway management products, to Chicagobased Linden LLC. Cardinal Health had picked up the unit through its acquisition of Viasys Healthcare, Inc. a little more than a year ago. Company officials have said they would decide before the October earnings release whether to spin off the clinical and medical supply products businesses into a separate, publicly traded company. Those segments contribute about 40 percent of operating earnings on 6 percent of sales. A spin-off would take roughly a year to complete. Cardinal Health’s pharmaceutical segment, its largest segment by far, offers distribution services for prescription medicine and medical products throughout North America and posts annual revenues of more than $80 billion. The clinical and medical products segment posts annual revenues of approximately $5 billion. “For two years, we have been taking steps to sharpen our focus on healthcare supply chain services and clinical and medical products, culminating with our announcement in July to operate these businesses in two distinct segments that reflect the unique character- Cardinal Health’s line of clinical products includes the Alaris point-of-care medication management series. on research and development will eat into earnings for the quarter. “The comparisons will be challenging before we get back on track in the second half of the year,” he said. ■ More at HealthcareITNews.com e Connect: SPiNoff 0908 ● Taking care of the little things makes all the difference. drX-1 Continued from page 38 if desired. In addition, the wireless functionality of the DRX-1 improves efficiency by allowing a much more flexible workflow to meet the specialized needs of each individual facility.” According to Minnigh, the DRX1 has been in planning and design for two years, with some experimental testing done this fall. The system is expected to be available worldwide early next year. The system is designed to meet the needs of small to mid-sized healthcare providers seeing a surge in radiography procedures but not having the funds to convert old, cassette-based departments into a full DR suite. Minnigh said radiology departments are seeing twice as many patients as they were 15 years ago, due in part to the aging Baby Boomer population. ‘This is the key that fits the lock,” he said. ■ More at HealthcareITNews.com e Connect: DrX-1 0908 We connect more providers to more payers than anyone else. But what really sets us apart is all the little things we do for both that make the business of claims and payments so much more efficient. Discover how Emdeon is changing the business of healthcare. Visit www.emdeon.com today. Simplifying the Business of Healthcare ● Patient Access Management • Claim Management • Remittance & Payment Distribution • Patient Billing & Payment e ● Connect: eMDeoN 0908 http://www.HealthcareITNews.com http://HealthcareITNews.com http://www.healthcareitnews.com/story.cms?id=9913 http://www.emdeon.com http://www.emdeon.com http://HealthcareITNews.com http://www.healthcareitnews.com/story.cms?id=9914 http://www.healthcareitnews.com/eConnect.cms?id=9952
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