Dephi Medical Systems seems to be making all the right moves, as they take their licensing deal with Caretools up a notch to outright acquisition.

"Delphi Medical's new software package will make Delphi Medical Systems
the only provider of easy-to-use handheld devices that can monitor and
provide 2-way communication with a variety of medical devices," said
Christophe Sevrain, Delphi Medical Systems managing director.

The software will soon be enhanced to provide short- and long-range
digital communication between the care provider and I.V. pumps, vital
signs monitors, respiratory devices, and dialysis equipment, all of
which are supplied by Delphi Medical. Medical devices made by other
companies can also be connected to the software. These medical devices
are used in alternate sites such as long-term care facilities, nursing
homes, doctors' offices, specialized clinics, and ambulatory care

The feature set they're building is needed across the health care
continuum, from home to hospital. If they can develop products that
delivers the above promise, at a price that their stated target markets
can afford, that will be a remarkable achievement. I know a few larger
established medical device vendors that wish they were working on half
of what Delphi's doing. I can't imagine Delphi not considering the much
larger hospital market for their suite of products.

Delphi has a corporate history as an OEM vendor, supplying core
technologies that go into larger products. But, rather than developing
traditional OEM modules like SpO2, NIBP, ECG
front ends, etc., they're pulling together what looks like the first
products to span the patient monitor-ventilator-IV pump market
segments. This
combo of therapeutic and surveillance devices could be very powerful.
The challenge is finding the right distribution strategy. Their stated
target market segments work well with an indirect distribution
strategy. However, hospitals are mostly a direct sales market. If they
can find a partner with a strong direct sales channel into hospitals
who's able to sell Delphi's complete medical device portfolio including
the connectivity to support caregivers at the point of care -- wow,
talk about a paradigm shift.