Update – The IPO Market Return

Or in the words of Santayana, "Those who cannot remember the past are condemned to repeat it."

As I write this post, the IPO market continues to rock and roll. As some confidence returns, investors look for new places to put money, and perhaps dress their year-end performance results with some nice IPO bounces. Wall Street is, of course, happy to oblige, especially in our own little corner of the economy, healthcare information technology.

Accretive Health’s IPO prospectus continues to wend its way through the bowels of the SEC. Management has no doubt endured the begging of numerous middle market firms trying to catch a few crumbs left after the four big banks received 95% of the available dollars. Given the size of the offering ($200 million), 5% economics is still over $800 thousand in fees left up for grabs, so you can’t blame folks for wanting a piece of it.

First of all, it’s an impressive transaction to be on, and nobody wants to blink. Second, there are a few small bragging rights: “They could have picked anyone, but they chose us”, I’m sure managing directors or partners will tell other prospects. But finally, as I said, even if they put two more banks on for $400K each, it’s high margin and extraordinarily easy business.

Recall our earlier discussion on IPOs with organizational meetings, drafting, etc.? That’s all been done before the new bank shows up. All that remains for the lucky new co-manager(s) to do is hold a few basic diligence calls, draft a memo to their firm’s commitment committee (the inter-departmental group that approves participation in equity transactions), and then take some slapping around by said committee as they ask the bankers the ritual hard question in this situation: “Doesn’t this set a bad precedent, to put our name on the cover for only (or perhaps less than) 5% economics?”

In the end, however, I’m confident Accretive will have its pick of underwriters. A fee’s a fee, especially in this market, and in my experience, the average managing director level banker will spend less than half an hour working once hired, farming it out to VPs, associates, and analysts. (readers who would like a Who’s Who of roles in a bank, please feel free to submit a question).

Meanwhile, HealthPort is concluding its road show this coming week as it works to convince portfolio managers and buy-side analysts that even though over 85% of revenues are related to release-of-information services, it really is a revenue cycle management company and should be valued as such.

Ask the Chair

I really appreciate the comments and questions I’ve received, both posted and e-mailed, so please keep them coming as I aim to inform and educate, not just ruminate. Let’s take a few:

Who coaches the management of publicly traded companies on what they can and can’t say?

It’s actually a combination of people, but last word is given to the lawyers. Part of the role of the board, I believe, is to help mentor first time public company CEOs, helping them strike the right line between promoting their stock (which is, after all, part of their job) and telling only truth. There are also investor relations professionals who do this for a living, though I’ve found their quality varies dramatically. Further, it will come as no surprise that, in both my prior lives as research analyst and investment banker, I’ve always tried to share my views on good Street communication, and I’m sure other bankers and analysts do as well.

At the end of the day, however, given the myriad SEC rules and regulations on stock promotion and our litigious society (and class action lawyers who don’t wait for the phosphors to fade on a negative press release to file a claim), it’s corporate counsel who often has the last word. This has been even truer since the adoption of SEC Regulation FD in 2000. Reg FD (for Fair Disclosure) was adopted to eliminate (really minimize) the phenomenon of selective disclosure that was rife on Wall Street. Companies would often tell their favorite analyst (who usually seemed to have a buy rating on the stock) a material fact before others, allowing him or her to share it with their best clients. Clearly that puts the investing public at a disadvantage, so the SEC adopted FD and lawyers suddenly had a lot more press releases to vet.

Let’s say I’ve been burned by the stock market and would like to invest some money, say $50,000, in a healthcare IT startup. Is that a good idea and how would I go about doing it?

Individuals investing in private, early stage companies are known as “angel investors”. There are pros and cons to making investments like this.

In theory, the readers of this blog, as well as being charming and perceptive, should know more than most anyone about the prospects of a healthcare IT startup. Recall that legendary investor Peter Lynch advised us to invest in what we know. A few things to think about beyond the obvious questions of “is this a good business?” are: “Do I trust and respect the judgment and integrity of the entrepreneur?” “Does this seem like a fair price for the company?” and dozens of other questions.

I think the first question to ask before an individual invests in a private company is, “How much do I care about that $50,000?” If you need it for Junior’s college tuition or your retirement in the next five or ten years, don’t even think it. Venture investing (which is what this is) is extremely high risk, that’s part of why venture investors demand high returns. Further, most startups fail (and HCIT is a tough area for success). VCs protect themselves there by investing in a portfolio of companies to diversify away some of their risk (typically, they expect multiple failures or break-evens for each success).

Also, ask yourself how you’ll get your money back: will the company be sold or go public? How much more money will they need? Angel rounds are usually early in a company’s life cycle, and subsequent money raised could well dilute your investment (lower the percent of the company you own). If you think you have the opportunity to invest in the next Epic Systems or athenahealth and are willing to take a flyer, more power to you, but caveat emptor (and good luck).

And finally, Matthew Holt wrote:

Ben I think you should take Ms. Faulkner on a fake road show, and then write that up.

Judy, if you (or one of your staff) are reading this and you would like the opportunity to hit the road and meet with the high and mighty of Wall Street to share your views of the sector and the publicly traded companies that make it up, I’d be thrilled to accompany you. I am pretty darned confident we could have the trip sponsored by a brokerage firm who’d also make a hefty donation to your favorite charity.

And if you agree, I’ll also go buy five lottery tickets and take a trip to Vegas, because it’s clearly my lucky day

Thanks for reading, have a great Thanksgiving, and keep those posts and e-mails coming.

Ben Rooks
The Chair

Ben Rooks is the founder of ST Advisors, a strategic consultancy offering long-term and project-relationships to companies and financial sponsors. He earned an MBA in healthcare management from The Wharton School of the University of Pennsylvania, has done healthcare IT equity research, and has worked as an investment banker in over 25 successfully closed healthcare and medical technology transactions valued from $40 to $365 million.

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The views and opinions expressed in this blog are mine personally, and are not necessarily representative of Texas Health Resources or its subsidiaries.

Why Healthcare IT Lags
By Ed Marx

Last week, one of our hospitals went live on CPOE. My boss and I were there as part of the ribbon cutting ceremony and to commend IT and the hospital for their hard work. When we met in the entryway, he eyed my attire with surprise. I was wearing scrubs, a violation of the dress code.

“Ed,” he said. “I bet you caused a lot of trouble growing up.”

“Yes, I did.” I liked coloring outside lines then; and I still do today.

But, why do I? Shouldn’t a leader be a good model to his followers?

I attended a national meeting with my healthcare IT (HIT) peers. Had you been a casual observer, however, you would not have pegged us as technology leaders. For all anyone could tell, we were glockenspiel salespersons. Our celebrated keynote, the government czar encouraging the adoption of HIT, was relying upon paper notes—yes, the physician who rightly wants our nation to lose the paper chart in favor of the electronic health record used hardcopy notes. And the audience was copiously taking notes…on paper. Need I say more?

Besides coloring outside the lines, I’m a fierce competitor. I aim to win every race I start. I’ll only accept defeat gracefully if I know I’ve poured my all into the competition. When I cross that finish, my tank had better be empty. In the same way, the lack of HIT progress aggravates the heck out of me.

Why are we so far behind other industries? Look in the mirror. That’s right. Time to come clean. It’s because of you and me. Granted, there are numerous other valid excuses, and I will touch on a few. But at the end of the day, the buck stops with us. When I lose a race, I don’t blame my blister, my clothes, the event management, the weather, the course, the timing chip, my equipment. I lost because of me.

Stop reading and let this sink in. You and I are the reason HIT lags.

But there’s hope. If HIT lags because of us, we can reverse the situation and make IT strategic in our industry and career.

When I asked my Tweeters and Yammers for ideas, here’s what they sent. Thanks to all of you.

Some reasons why we lag:

· Leadership

CIO’s not leading

CIO’s not culturally relevant

CIO’s reporting to CFOs

C-Suite not understanding or acknowledging HIT strategic value

CIO’s fear of failure

Leaders tend to be older and less receptive to technology

Decision makers often have clinical backgrounds, an area that has a bias for rigor, analysis, and is slow to change

· Healthcare Complexity

Burdensome government regulations stifle attention and consume financial resources

Payment systems and processes

Lack of standardization

Piecemeal approach to application deployment

Clinical and legal liability

Fragmentation – hospitals are silos of individual services, often used by independent practioners, all with differing cost and profit structures

Complexity is so great that leaders don’t want to deal with it

Incentives to innovate and minimize inefficiencies, if they exist, are contained to a specific workstream – not the entire ecosystem

Adoption of any new treatment or procedure in medicine has traditionally been slow because of the need for long-term testing and proving of safety and efficacy. This approach has transferred to the adoption of anything “non-medical”, new or different like HIT

· Financial Resources

Lack of margin to focus on innovation

HIT investments are not appropriately correlated to outcomes

Historical under investment

· Healthcare Culture

Healthcare by nature is precise, protocol-driven, and we teach the need to be "in control" at all times. While this is true for clinical care, the same mentality in other areas (IT) hinder change

A corollary to the above- By nature, people with these characteristics self-select into healthcare, making the climb that much more steep

A schism exists between IT and those who provide hands-on caring service to patients

Much like the traditions connected with our clinical training counterparts, HIT leaders are still promoted and recognized for experience and longevity

Social-cultural issues; change resistant

"High touch" aspect of healthcare views HIT as intrusive

HIT must be proven safe before it can be used, where as in other industries, if you test and fail there’s little harm

Waiting for next big thing

Lack of market-driven demand

Knowing and holding information is power and HIT threatens that power by enabling easy sharing of information

CIOs are in a unique and coveted position that allows us to observe and tie together the healthcare ecosystem, first within our own gates, and then beyond. The single biggest change agent to move HIT from laggard to leader is not healthcare reform. It’s you.

Ways to reverse our situation:

· Stop throwing up your hands and blaming the environment

· Take responsibility

· Take calculated risks and color outside the lines

· Take proactive actions internally and externally at the local, state, and national levels

· Challenge the status quo

· Tackle the tough issues and demonstrate HIT investment value realization

· Model innovation and technology use

· Get deeply involved with your clinicians and live their processes

· Be disruptive

· Stop traditional hiring and promotion practices. Instead, favor talent

· Look outside of healthcare for new ideas

By the way, I wore scrubs at the GoLive so no one would mistake me for a chaplain, a lawyer, or a glockenspiel dealer. The color matched the rest of the IT team on the ground and fosters a close working relationship with clinical staff. I was proud to wear it, to show I cared. And because I love to surprise my people.

So…I commission you to help your organization and physicians understand the strategic value of HIT. You hold the salve to heal what ails healthcare today.

Ed Marx is senior vice president and CIO at Texas Health Resources in Dallas-Fort Worth, TX. Ed encourages your interaction through this blog. (Use the “add a comment” function at the bottom of each post.) You can also connect with him directly through his profile pages on social networking sites LinkedIn and Facebook, and you can follow him via Twitter – User Name “marxists.”

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From HITMarqueen: “Re: OR cameras. I’m curious if you have any thoughts on the recent ruling by Rhode Island’s Dept. of Health that requires video cameras be installed in all Rhode Island Hospital operating rooms to monitor patient safety during surgical procedures? This is in addition to a $150K fine for the most recent wrong-site surgery at the hospital.” The state had to do something. Rhode Island Hospital has done five wrong-site surgeries since 2007, most of them really stupid (three wrong-side brain surgeries and the most recent gaffe, operating on the same finger twice instead instead of the two intended fingers — how can you make excuses for that?) Surgeons weren’t marking their sites and time-outs weren’t being done, which sounds like a great reason to revoke their privileges. The state ordered the hospital to assign someone to watch the camera for at least a year, observing every surgery to make sure the marking and time-outing are done (sort of like a football replay official, I guess). They’re darned lucky to be allowed to keep their OR open. Want to bet it’s not just the OR that has problems?

From H. Boc: “Re: Pano Logic devices. HBOC had one of these years ago. Whenever money was nearby, a little hand would come out of the box and snatch it. Then a voice in the box would tell you that the software was going through an upgrade and would be delayed for install.” That must have been a Pathways box. Maybe it handed back a side letter.

From Connie Ripley: “Re: content management. I’m curious to get an idea of how many healthcare or HIT companies are taking Content Management seriously? I see this as an area in dire need of improvement and I can tell you straight from the trenches that it’s not for the faint of heart.”

From Mercy, Mercy Me: “Re: parking garage advertisement. This is what attracts doctors to use CPOE.” UPMC Mercy has the right idea since you only have a few areas in which you can get the attention of doctors: the parking lot, the doctor dining room or lounge, and the chart completion area. Once they get them on CPOE, they can add nag screens for subtle messages of propaganda. Or, send them off to re-education camp

From Peter Gunn: “Re: HIMSS. Dang! I was dying to go to HIMSS last year in Chicago, but I live in Atlanta, and now that HIMSS is here in Atlanta, it sounds like it’s not worth going!” I’ll go out on a limb and say that it’s been years since it was worth going if you consider just the official offerings — the self-congratulatory opening session, lame keynotes, mediocre educational programs carefully limited to ensure vendor access to providers in between, having HIMSS-sponsored and ad-filled publications thrust into your face at every turn, and being herded to the exhibit hall like cattle in a slaughterhouse. The best thing about HIMSS is all the non-HIMSS people and events. They haven’t figured out a way to screw that up yet (although the uber-commercial tone threatens to keep providers home, which would then make the conference pointless). You could get most of the value of the conference by not registering at all, just hanging around the public areas of the convention center and attending non-HIMSS events. That would save you only $640 of the total cost, though. There are many things I don’t like about the conference, but I still go.

From Michelle Flaherty: “Re: EHR vendors. QHR will acquire Clinicare, a KLAS winner (Chartcare). Both companies are in Canada. Also, Noteworthy Medical Systems, acquired early this year by CompuGROUP Holding AG of Germany, is sunsetting its non-ASP product.”

From Just Checkin’: “Re: HIMSS shindig. So admittedly we’re not even to Thanksgiving, but given the need to schedule time off way in advance, I gotta get organized. Will the annual shindig take place at HIMSS? If so, is there a date?” I theorize that the beginning of winter gets people thinking about HIMSS, even though it’s a while away (I’ve booked an ultra-cheap hotel already myself and need to pay my $640 registration fee before it jumps to $740 on December 15). I’m still working on details of the reception with the sponsoring company. It is horrifically expensive to put these on — you could have a swanky evening in the best restaurant in Atlanta and still spend a lot less than it costs per person to offer just  a couple of drink and snacks in a private reception. When we first did it in Orlando, I was naive enough to think that we could just buy out some big restaurant and spend $75 per head for an open bar and dinner, but that brings other challenges: which places are available during HIMSS, how many can they hold, how do people get to and from, is it suitable for mingling and having a speaker or two, and how many slots does the sponsoring company want for their own use. It’s also a tough sell to vendors since many of the attendees will be HIStalk readers who work for other vendors. I’m hoping for the usual Monday night, but it’s still up in the air.

Speaking of which, it will be HISsies voting time soon. To prevent the usual ballot box stuffing, only those on the e-mail blast list will be able to vote this year. If you want in, put your e-mail address in the Subscribe to Updates box.

HIE service provider MobileMD gets $4.75 million in a VC funding round led by Health Enterprise Partners.

Athenahealth is awarded a patent for its athenaNet billing rules engine. Shares rose almost 5% Friday after the announcement, closing near their 52-week high.

An MIT research assistant creates SixthSense, a combined camera and projector worn around the neck that turns any surface into a screen and input device for smartphones, which he says will allow low literacy citizens of India to use software applications as their gestures are translated into commands. The TEDIndia demo video is amazing. If you’ve seen Minority Report, it will look familiar. Manufacturing costs are estimated at $350. The audience went bonkers, especially when he used his hand as a screen in the picture above.

Here’s my response to the announcement that HIMSS won’t be going back to Chicago because it’s too expensive: duh. Everybody who has every been involved in conference planning is well aware that strong unions, expensive hotels, and rife corruption have made Chicago a terrible place to hold a conference (not to mention that it snows in April, as we now know, although that was a plus to HIMSS because it kept people in the exhibit hall instead of doing something fun). If HIMSS was shocked (no pun intended) by the electrical costs of the most recent conference, then it didn’t do its due diligence and the vendors who had to pay those ridiculous costs ought to be mad. I’ll predict now that exhibitors will be griping after the Lost Wages conference that everybody bailed on the exhibits to go to the casinos and shows.

September’s Harvard Meeting on an HIT Platform (the “HIT should work like an iPhone” meeting) was invitation-only, but they’ve posted videos and an executive summary (warning: PDF). It includes Aneesh Chopra and Todd Park talking about turning NHIN into the “Health Internet”, hoping to make a lot of patient data available around which new applications could be built.

A non-profit hospital paying its CIO over $500K is not clearly excessive, say 64% of survey respondents. New poll to your right: is it OK that HIMSS offers cash payment to conference attendees who attend vendor demos?

The Madison paper covers the construction of Epic’s second campus, with the four buildings now halfway finished and one occupied. It says the company will add another 200 employees this year for a total of 3,400, including a Netherlands office with 35.

Speaking of Epic, this comment from a David Blumenthal e-mail (that I get, for some reason) seems to be a shot at MyChart and Epic’s other data sharing programs that work only for Epic-using hospitals: “… we cannot support arrangements that restrict the secure, private exchange of information required for patient care across provider or network boundaries.” Glen Tullman was also talking apparently talking about Epic (since he’s made similar comments elsewhere that named them specifically) in my interview with him this week:

“We need an interoperable system no different than the ATM networks that we use, no different than cellular networks. We have many different competitors, but they’re all using — they’re all connected to a network exchanging information; and of course, no different than the Internet. That’s the model that everyone ought to be forced to play in. We have some holdouts who are really not supporting this idea of full interoperability. So if I could change one thing, I would say we’ve got to much more aggressively push on interoperability.”

I had a question I would have asked had we not been running short on time: “Wouldn’t Allscripts do the same thing if it had the same chance as Epic?” Not for unsavory reasons, but because having big market share in an area provides some fast, cheap interoperability opportunities that are great for patients in those areas, even if they don’t tie into whatever regional or national networks that are being considered.

Exempla Lutheran Medical Center (CO) goes live with its Epic EMR. The three-hospital cost: $85 million, plus another $4 million for its physician practice.

Tampa-based Tech Data forms a healthcare business. Stimulus dollars may not be doing much good for unemployment, but they’re bringing a lot of companies into healthcare that weren’t interested until the taxpayer money chummed the waters. All I’ll say to the prospects they’ll try to convince of their newfound interest: lots of companies got out of healthcare just as fast as they got into it when the expected profits didn’t materialize. It’s not like we’re a new industry.

The ACG Boston 2009 Fall Conference & Private Company Showcase is this week in Boston. Speakers: John Halamka (of course), Todd Cozzens of Picis, and Carl Byers of athenahealth. Cost to attend the 3.5 hour conference – $330.

A doctor in China loses his job and his license after investigators checked computer records and verified that he was playing online computer games at work while a five-month-old baby he was supposed to be monitoring died.

Apple files a patent for its long-rumored tablet PC.

University of Maryland Medical System will float a $250 million bond sale, with a portion of the proceeds to be spent on clinical systems.

Merge Healthcare will sell $27 million worth of new shares to pay off debt. Shares are worth eight times what they were a year ago, but still barely more than 10% of what they sold for three years ago. It also has expanded its offerings in China.

E-mail me.

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The Certification Commission for Health Information Technology announced today that its chair, Mark Leavitt, MD, PhD, will retire from the organization in March. A search firm has been engaged to recruit his replacement.

Steve Lieber, HIMSS president and CEO and chair of the CCHIT Board of Trustees, said the board “accepts Mark’s decision with reluctance” and says the search for his successor will be “open and transparent.”

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From Vendor Bribes: “Re: Amazing bribery to EMR buyers via HIMSS.” The HIMSS Takin’ HIT To the Streets campaign (gag, even for Doobie Brothers fans) leaps that last boundary of member organization common sense –  they’re paying people to attend the sales presentations of their vendor members. I’ve been watching the remake of the old miniseries V and I think maybe vendor visitors have taken over Steve Lieber’s body since the previously furtive and tentative vendor-HIMSS gropefest has advanced to a full-on public consummation.

From Dr. Know: “Re: HIMSS. I think that HIMSS needs a shock to the system. We all recognize their priority is to serve the interests of the vendors and not hospital end users. Therefore, I wonder whether an organized boycott of this year’s conference is in order?” I’m not a fan of boycotts. If members and attendees don’t like how they are being represented, they know their options. Without providers as attendees and members, the vendors would bail quickly.

From Ryan: “Re: HIMSS. Not sure why Siemens would pull out of HIMSS 2010 in Atlanta, as they have an office in Alpharetta.” They still would have to buy horrendously expensive exhibit space, pay people to work the show, pay union carpet sweepers and power strip deliverers, and bring in people from places a lot further away than Alpharetta. All to reach the mostly non-decision makers (competitors, consultants, and people who don’t influence hospital IT purchases) who pad out the otherwise impressive attendance numbers. Siemens did it before (as SMS) and this time around, Cerner can’t shame them to prospects since they’re not coming either.

From Hockey Dad: “Re: EMR ratings. 2,556 primary care physicians (family doctors) rate their EMRs. Results published in Family Practice Management from AAFP.” You have to subscribe to read, but Hockey Dad sent a PDF. The article admitted some unavoidable bias (self-selected respondents, too many vendors to ensure adequate sample sizes for all, and different levels of expectation based on practice size) and accordingly warned about taking the results as anything significant. They didn’t really name overall winners, but the closest thing to it placed the top 10 as (1) e-MDs, (2) MEDENT, (3) Praxis, (4) Amazing Charts, (5) eClinical Works, (6) Epic, (7) Practice Partner, (8) Allscripts Professional, (9) Centricity, and (10) Aprima.

From Demetri Noh: “Re: survey. Got this survey, which appears to be from a rival group of HIMSS.” Or “HIMMS”, if you like their version. It’s not clear who funded the research firm’s survey. It’s a great time to be starting up a HIMSS alternative, if you ask me, although I don’t know if that’s the point of the survey.

From Billy Bong: “Re: radiologist. This can’t be good for the industry.” An Atlanta doctor who runs a radiologist coverage service faces 20 years in jail, charged with letting unlicensed employees write up his interpretation reports for images he didn’t bother to look at.

From Craig Powerplay: “Re: AHA Solutions. They understand their endorsed products only to the extent that they need to believe people will buy it. They only make money if the endorsed product/ service sells. When we negotiated with them, we didn’t see much understanding in what our product was, but they did understand this:  press hard for a high yearly endorsement fee and a high percentage of each sale. We passed — our margin would have been near zero.”

From The PACS Designer: “Re: RSNA iPhone review. With the popularity of the iPhone in healthcare increasing, you may want to check in at the RSNA for a presentation by Presenter Dr. Krishna Juluru, an assistant professor of radiology at Weill Cornell Medical College. Along with others, he will be discussing the use of the various healthcare apps in radiology, and how they can improve the care process.”

Listening: Amorphis, another of those Finnish progressive metal bands that I like.

I interviewed Allscripts CEO Glen Tullman on HIStalk Practice. If you decide to check it out, drop your e-mail address in the Get Instant Updates box on that page and you’ll be the first to know when we run something new there (it’s a separate e-mail list since not everybody who reads HIStalk follows physician practice software).

Cris Assif is named managing partner of consulting firm Entrust Healthcare.

A reader forwarded an e-mail from Duncan James, president and CEO of QuadraMed, welcoming Michael Jarrett as the new VP of client services, coming over from McKesson but also sporting QCPR experience from its previous owners Per-Se and Misys. Linda Baum and Linda Benson were wished well in future endeavors required to take place elsewhere.

I can’t find any updates on Charlie McCall’s trial. If you’re in San Francisco, you could wait outside the court house and snap a picture for me, and maybe thrust a recorder in his direction while asking accusatory questions that might startle him enough to answer.

EDIMS, the Livingston, NJ based vendor of emergency department systems, is supporting HIStalk as a Platinum Sponsor, so thanks to the folks there. Its EDIMS flagship product is live at 39 sites, has documented over 12 million encounters, and is used by EDs that document 100% of their patients compared to a national average of 40%. It offers a quick registration kiosk, nursing documentation, graphical patient tracking, an alert-driven nursing dashboard, CPOE, order sets, charge capture, prescription writer, medication reconciliation, and lots of other features. I appreciate their support.

McKesson announces Horizon Connect, an interoperability product. For home buzzword-counters, the press release included these: solution suite, seamlessly, discrete, actionable, workflow, collaboration, continuity, aligned, continuum, and ubiquity.

Epic Systems is among the financial backers of Porchlight, a Madison prevention and treatment agency for homeless veterans.

Iowa State University researchers develop software that converts CT and MRI scans into 3-D representations that can be navigated by joystick, making them useful for doctors for planning surgeries and for teaching. As one said, “2-D is guessing and 3-D is knowing.” The product has been commercialized as a $4,995 PC package that uses Xbox controllers. The above image is a converted cardiac CT.

St. Vincent’s Catholic Medical Center (NY) replaces its PC desktops with a virtual desktop infrastructure, speeding up their network since the zero client cubes do screen scrapes of VMware server-hosted applications. The 3x3x2 inch Pano Logic devices have USB plugs that connect to a virtualized Windows desktop server in the data center — no moving parts, minimal energy consumption, and minimal footprint.

Medical Mutual of Ohio will roll out Intuit’s Quicken Health Care Expense tracker to its 1.6 million members. A consumer advocate says easy-to-read bills are good, but reminds, “Even if you are armed with this information, it’s not as if you shop for health care directly. You go with your insurance company. It’s unclear that the information really translates into any new buying power.”

Sam Heard, the doctor who runs Ocean Informatics in Australia, is profiled in a newspaper article. His company developed openEHR, a “shareable EHR” chosen by Sweden as the basis of its national eHealth infrastructure. Its template designer is pictured above.

The nursing school at Case Western Reserve University gets a $1.3 million grant to develop avatar-based software that teaches patients to communicate with their doctors. They envision it running on a kiosk outside the doctor’s office to coach patients on what to ask.

A critical results related lawsuit verdict: the doctor of a hospitalized 18-year-old woman who had just given birth orders blood tests, which showed a serious infection. The hospital lab didn’t get the results to the doctor in time to avoid a complete abdominal hysterectomy. The jury returns a $2.3 million verdict against the hospital.

E-mail me.

HERtalk by Inga

Design Clinicals reports that it’s on track to double its revenue and product sites for FY09. Its MedsTracker medication reconciliation product is now live or in implementation mode at 18 sites. Mr. H interviewed founder Dewey Howell a couple years back when the company was in the midst of its first installation.

Hewlett-Packard agrees to pay $2.7 billion to acquire 3Com. The acquisition strengthens HP’s position as a one-stop shop for corporate customers.

Trinity Health plans to install seven of Elsevier’s online clinical decision support solutions across several of its facilities.

Picis recognizes winners of the Picis 2009 Customer Recognition Awards, selected based on their use of Picis solutions to improve their financial and clinical operations in the ED, OR, or ICU.

Allscripts contracts with DecisionOne to provide hardware infrastructure support to its clients. Allscripts internal hardware service personnel will integrate with DecisionOne’s field service organization. Sounds like a good move as it allows Allscripts to focus on the software side of the business. Having an internal field service team is less critical in today’s server/PC world than it was in the good old days of proprietary hardware.

HIMSS announces it will head to Sin City for the 2012 Conference and Exhibition. According to the Chicago paper, HIMSS chose Las Vegas over the Windy City because of the high cost of labor at McCormick Center, with electrical service at this year’s conference costing 4-10 times as much as it did in Orlando the year before. I love Chicago, but like the Vegas choice simply because the average February temperature is about sixteen degrees higher.

Iowa Health System deploys McKesson’s Horizon Medical PACS solution at 34 locations throughout Iowa.

Healthvision calls its third quarter “healthy” based on its closing of 97 transactions, including 13 new customer engagements.

Intel’s Digital Health Group introduces a mobile handheld device designed to assist people with dyslexia or vision problems. The Intel Reader uses a camera to capture text and converts it to digital text. The device then reads the text aloud. List price: $1,499.

API Healthcare signs an agreement with Logicalis to offer remote hosting services to API clients.

Premier Purchasing Partners awards Meta Health Technology a 36-month contract to provide Premier members special pricing and terms for Meta’s patient chart abstracting and Electronic Physician query software products.

Scott A. Storrer takes over as president and CEO at MEDecision. The transition has been in the works since Storrer joined the company in 2008. Founder and current CEO David St. Clair will retire December 31, but stay on the board for one more year.

First Citizens Bank agrees to market mPay Gateway’s patient payment system to its physician practice clients.

Indian police arrest the head of an outsourcing company for allegedly selling the medical records data of patients treated in a British hospital. An undercover investigation revealed Vikas Dhairyashil Bansode had thousands of records that included confidential clinical and financial information. Bansode and his accomplices obtained the records from IT companies contracted to convert the paper records to digital. The group then sold individual records to middlemen for as little as $6 each via Internet chat rooms.

Senator John Kerry introduces legislation to help small medical practices become eligible for SBA loans to cover EMRs and e-prescribing costs. Funds could be used for both hardware and software.

A whopping 94% of healthcare organizations don’t think they are ready to comply with the privacy and security provisions included in the HITECH Act. The new regulations, which go into effect in February, extend existing HIPAA rules including increased enforcement, penalties, and audits. Funding is the biggest barrier.

The University of Colorado Hospital signs a contract for multiple Lawson enterprise applications to enhance HR and overall business operations.

Healthwise, a non-profit provider of consumer health information content, lays off over 10% of it 222 employees. It has traditionally provided printed materials, but the market is shifting to electronic sources. Healthwise is now focused on providing content via EMRs.

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