PanGo Signs New Reseller
RFID vendor PanGo Networks has picked up a new distribution partner, ePlus. ePlus is a well established value added reseller, and already sells and services Cisco products. Here's the rationale:
Technology's focus on integrated healthcare solutions and its expertise
with Cisco Systems' wireless local area network (WLAN) technology
provide an ideal approach to support PanGo's Wi-Fi-based asset tracking
solution. With a team of highly-skilled engineers with Cisco
certifications in Network Management, Routing and Switching, VPN
Security, Wireless LAN, and IP Communications, ePlus possesses the
expertise and knowledge to deliver leading healthcare solutions for
Cisco and its new wireless Clinical Connection Suite.
ePlus is part of a sub group of Cisco resellers that are included in their Medical Grade Network and Clinical Connectivity Suite marketing programs. They also have a contract with group purchasing organization (GPO) VHA.
[Hat tip: Wireless Healthcare]
Florida Health System Adopts eICU from VISICU
Baptist Health last month began using the remote ICU observation – a first in South Florida – to monitor patients at South Miami Hospital. The center will begin monitoring ICU patients at Baptist Hospital next week and will expand to Mariners, Doctors and Homestead hospitals by the end of the year. The remote ICU observation center cost $8 million to launch and will cost another $4 million in annual operating costs. The center is linked to the hospitals by fiber-optic cable, with several levels of backup. By the end of the year, Baptist Health plans to be monitoring 120 ICU beds. According to the Miami Hearld,
The hospital doesn't charge extra for remote monitoring. It hopes to
save money with results. Sentara Healthcare, a hospital system in
Norfolk, Va., which in 2000 became the first to have an eICU, found it
decreased ICU mortality by 25 percent and length of stay by 17 percent.
A Cap Gemini Earnst & Young study of Sentara's operation found a
drop in complications and a 26 percent drop in the hospital's costs.
Savings per patient averaged $2,150, according to ProQuest Information,
a trade publication.
The story includes a great description of how the eICU system is used:
As Nelson talked to a journalist one recent morning, his screens
were filled with details on a 61-year-old woman. On the upper left
screen, he could see the woman suffered from hepatitis C and side
effects from liver problems. She was rushed to the ICU suffering from
pneumonia and an infection in the blood stream.
Her heart was beating 98 times a minute. If it reached 100, an alarm
would go off to warn a nurse in the unit to check her out, but in the
meantime, artificial intelligence software looked for trends, so that
if her heart rate was steadily increasing, for example, a nurse would
be alerted even if the level hadn't reached 100.
This woman had been admitted only two hours before, Nelson said. At
the four-hour mark, the software would do an analysis of her and then
warn of downward changes in her condition.
As lab tests came in, results were flagged yellow for borderline and red for “highly abnormal.''
This woman was showing several yellows, as was to be expected, and one red — for blood salt.
When Nelson saw a flutter in the woman's vital signs, he suspected
she was in discomfort and he turned on a camera that showed her tossing
and turning.
A bell sounded in the room when the camera went on, alerting both
staff and patient that they're being watched. ''We try to be extremely
protective of the privacy of the patient and the staff,'' Nelson said.
the ICU, but when they want to be really sure their concerns are passed
along, they do it the old-fashioned way: They pick up a telephone and
call.
[Hat tip: iHealthBeat]
Allscripts Acquires A4 Health Systems
Allscripts and A4 have signed a deal, valued at $272 million in stock and cash. A4 has over 1,600 customers.
The strategic acquisition of A4 will double Allscripts clinical
software revenues and the size of its sales force, while significantly
expanding Allscripts existing product portfolio and providing the
company with an integrated EHR/PMS for small to mid-sized groups.
Headquartered in Cary, NC, with over 400 employees nationwide, A4 also
provides emergency room and care management solutions to the
multi-billion dollar hospital emergency department and discharge
planning markets. Both are key points of connection with the electronic
healthcare record.
In 2005, A4 generated revenues in excess of
$75 million, EBITDA of approximately $15.5 million and net income of
approximately $8.3 million. The transaction consideration will consist
of $215 million in cash and 3.5 million Allscripts shares valued at
approximately $57 million, based on yesterday's closing price of $16.30
per share. Allscripts intends to finance the acquisition using cash on
hand and through the issuance of new common shares.
In the same announcement, Allscripts discloses a new agreement with GE Healthcare.
Alliance Agreement with GE, the parent company of IDX Systems
Corporation (IDX). Under the terms of the amended agreement, Allscripts
existing alliance with IDX will continue through the five years
remaining under the original agreement, supporting the ongoing
integration and compatibility of the Allscripts and IDX products. GE
will continue to offer Allscripts TouchWorks(TM) EHR within the IDX
client base, in addition to its own Centricity(R) Ambulatory EMR. The
Agreement also allows Allscripts to enter the practice management
systems (PMS) market and to offer an integrated practice management and
EHR solution. Depending on the needs and size of the practice,
Allscripts will offer the integrated A4 practice management/electronic
health record solution, its TouchWorks(TM) EHR in combination with the
A4 practice management system, or, for IDX practice management clients,
TouchWorks(TM) EHR integrated with IDX Groupcast or Flowcast products.
Under the terms of the Amended Strategic Alliance Agreement, GE and
IDX have extended their commitment to support integration and
compatibility of the Allscripts and IDX products for the next five
years and beyond. During the next 18 months, GE and IDX will continue
to market Allscripts TouchWorks(TM) EHR and GE's Centricity(R) solution
to current customers and Allscripts will continue to market the
combined Allscripts/IDX solution into the IDX base. New IDX clients
will also continue to receive free interfaces from Allscripts. During
this period, Allscripts has agreed not to market any acquired practice
management system to current IDX customers. For new sales outside the
existing IDX base, Allscripts and GE are free to offer their own
respective practice management and EHR solutions without restriction.
Allscripts royalty obligations for sales to the existing IDX installed
base will be reduced by 50% immediately and will then be phased out
over time.
Allscripts is clearly not going to roll over for anyone. A previous post on the GE acquisition of IDX is here.
UPDATE: Here's an AP story on the acqusition.
UPDATE: Tim at HIStalk has a some interesting insight (as always) on the Allscripts/A4 deal. Be sure to scoll down for some good comments too.
Philips to Acquire Lifeline Systems
Philips gets serious with the $750 million acquisition of personal emergency response company Lifeline. Philips can read demographic trends as well as anyone, and looks to establish a major foothold in the remote monitoring market outside of their base in hospitals.
The aging of the population provides strong underlying market
growth for home healthcare solutions such as those offered by Lifeline.
Today, seniors represent around 15% of the population in the developed
world and are expected to almost double in size over the next 25 years.
At the same time they are becoming increasingly active in managing
their own health and wellness. Personal response services are already
the largest category of home healthcare solutions purchased
out-of-pocket by older adults and their caregivers. Still, penetration
in the age group 65 years and older is just 2-3%, allowing for
significant future growth.
Lifeline's revenues in 2005 are
expected to be approximately USD150 million, representing a 15%
increase over 2004. A large part of the revenues are recurring in
nature. Lifeline's operating margins in 2005 are expected to be
approximately 15%. The company has a broad market presence in the
United States and Canada. The company markets its services through a
network of more than 2,500 hospitals and other healthcare providers and
serves a subscriber base of nearly 470,000.
Hmm – reasonable growth, recurring revenue, utilizes hospitals for distribution (where Philips is very strong), with almost a half million consumers – this deal makes most acquisitions look like a waste of time. Lifeline's customers are probably more affluent and have more chronic diseases than the population as a whole. Expect to see integration with consumer targeted AEDs and up-selling their Motiva disease management products.
