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19. minis keane

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  • 1. H.I.S.-tory by Vince Ciotti Episode #19: “Keen” on © 2011 by H.I.S. Professionals, LLC
  • 2. But first…
    • Perspective on where we are in the 3 rd decade of our HIS-tory:
      • 1960s = Mainframes, 1970s = Shared Systems, 1980s = Turnkey Minis
    • Hard for we moderns to remember back when hardware dictated the HIS system, since servers are so up in the “cloud” these days…
    • Turnkey minis were absolutely taking over the industry by the late 70s, from shared giants SMS & McAuto, who also offered minis.
    • A turnkey mini system even made the cover of Modern Healthcare’s October 1978 issue, featuring Methodist Hospital of Indiana :
      • “ Some hospitals are finding they don’t have to change the way they operate to accommodate a newly installed, commercial, computerized medical information system – they can make it fit their routines.”
  • 3. One Man’s Story
    • The story of Keane actually does not begin with John Keane, who formed the firm in the 60s to work in many industries, just like McAuto’s G SD ( General Services Division) presaged its H SD ( Health Services Division).
    • John Keane’s Boston-based eponymous firm sold IT services to anyone , e.g., they helped manned the 800 lines for MicroSoft’s “Windows 95” GUI in 1995…
    • The story of Keane’s HIS is the story of another man:
    • Ray Paris , one of the early HIS pioneers whose career both before and after creating Keane’s HSD is a mini “HIS-tory” in itself!
    • Many thanks to Ray for taking time off his busy retired golfer schedule to relay this tale!
  • 4. McAuto Roots
    • Like so many HIS pioneers, Ray cut his HIS teeth at McAuto in the early 70s, where he met notables like:
      • Walt Huff , who interviewed Ray, but left to form HBO
      • Ron Johnson , vendor guru and early McAuto sales rep
      • Jim Navin , another early Mac maven (before Hafty…)
    • Ray was hired in 1972 and started work at McAuto’s posh offices in NYC’s Chrysler building.
    • Contrast it to SMS’s first NYC area office in the former water company building in glamorous Woodbridge, NJ:
  • 5. Early Sales Successes
    • Ray remembers getting a harassing phone call from SMS’ NY rep, Dick Davis, who promised to eat Ray’s lunch …
      • (as you’ll see with Ray’s success, it was just a few crumbs !)
    • Ray started selling McAuto’s HFC aggressively, winning a huge NJ account: Hackensack Medical Center
    • One of McAuto’s largest account at the time, 500+ bed Hackensack has since gone on to be a (too) “early adopter” of Siemens Soarian, and recently took an Epic plunge…
    • McAuto’s sales manager Ron Johnson tried to keep this sales superstar in the fold, but…
  • 6. Ray Listens to “FM”
    • In 1976, Ray left McAuto to join Ray Kern’s Innovations in Technology , the pioneering Facilities Management (FM) firm, John Indrigo told us about just last week.
    • The FM concept sold well back in those self-development days, when inhouse mainframe projects seemed to take forever, and hospital management was eager for a “white knight” to come over the horizon…
    • Paris became Ray Kern’s sales maven, building up the firm to where it caught the eye of John Keane in Boston.
    • John Keane acquired Innovations and Ray Paris, became VP of their new HSD division, which he headquartered in Melville, “Lon Gisland”
      • (that’s how it’s pronounced in NY!)
  • 7. Turnkey Turncoat
    • Keane kept selling FM at first, but gradually realized that turnkey minis were sweeping the field in the late 70s.
    • Following the market’s preference (prejudice?), they first considered a mini system on an IBM System 3,
    • Before hearing about a pioneering (1950s) computer manufacturer in Mass., headed by founder An Wang .
    • Wang first made calculators, the rage in the 60s, then made minicomputers in the 70s.
    • Word Processing became their hot niche, in this era of typewriters and carbon paper.
    • Keane realized the power of Wang’s CPU, and used it to build their mini-based HIS.
  • 8. A Rose By Any Other Name…
    • The name “Wang” caused quite a few snickers in buying circles at first, compared to the fame & clout of Big Blue
    • Keane’s development maven, Ray Gottleib, jumped on Wang’s powerful Model VS80 with intelligent terminals, to build their mini-based HIS system, sold first as an FM.
    • The price/performance was so good, however, 30 were sold as turnkey systems, ending Keane’s FM approach.
    • Eventually, the IBM name & dominance won over, and Keane offered HIS systems on IBM Sys 3 and 34 minis.
    • In the 80s, Keane tried an early UNIX -based system called “Threshold,” that was hardware independent, but the R&D proved difficult to complete…
  • 9. A Choir of Acquires…
    • Keane grew rapidly in the 80s through a series of acquisitions, just like competitor HBO was doing.
    • All told, Keane acquired 13 HIS vendors, including:
      • Pentamation – a Maryland-based firm, who had recently been acquired by Ferranti from Italy
        • (the first of many forays by multi-nationals into US’ HIS)
      • Their “ Leadership Series ” mini system was a hot in acute care, along with a surprising successful niche:
    • Long Term Care systems, in which Ferranti/Pentamation had become a market leader. Although low in individual system price, eventually, Keane would become dominant in this specialty market with about 4,000 clients!
  • 10. Other Acquisitions
    • Some of the 13 firms Keane gobbled up over the years, e ach of which could be its own mini-“HIS-tory,” include:
      • Source Data Systems (ex-NCR MedNet)
      • Executive Data Systems , Cedar Rapids
      • Community Health Computing
      • Infostat (UNIX on AT&T hardware)
      • LabFusion – stellar LIS niche player
      • Etc., etc., etc…
      • We’ll delve into two of Keane’s most long-lived acquisitions:
        • First Coast – an IBM mini-based turnkey system formed by Charles Gibbs in Jacksonville, with about a hundred clients…
          • Renamed (surprised?) as “InSight,” with a full suite of financial & clinical apps running today in ≈50 hospitals
  • 11. AMI /PHS
    • (Sorry for the acronyms, but this is the HIS industry, right?)
    • AMI = American Medical International, a chain of proprietary hospitals HQ-ed in LA, that competed with other multis of those days like AAM (PA) and HAI (TN)
      • AMI tried to gain a competitive advantage by building its own DG-based HIS, using its owned facilities for R&D input/pilots.
      • Their HIS subsidiary was “ Professional Hospital Services ,” that built an HIS called “Pat-Com,” with superb Patient Accounting…
        • Still runs today in Johns Hopkins!
    • - Many ex-SMS alumni populated PHS :
      • Rich Haynes , PHS ’ founder & CEO
      • Art Harris – who started at AHS’ ISD
      • Rich LaBelle – from my Ed. Dept.
      • Arnie Caplan , ex-SMS ID Mgr, and one of the nicest guys in HIS-tory…
  • 12. Merger-Mania: Mangia!
    • Keane bought so many competing systems, it is only fair that eventually they got bought themselves, twice!
    • First time was by Caritor , in 2007 for $845M, an IT firm that made it’s fame outsourcing development to India…
    • Who sold Keane next to NTT (Nippon Telephone & Telegraph) in 2010 for $1.2B (nice profit in 3 years!)
    • Today, Keane still dominates the LTC market with their
      • “ NetSolutions ,” descendant of Ferranti/Pentamation
    • In the HIS space, they offer:
      • - “ Optimum ” – a combo of Pat-Com’s superb RCM, and
      • - “ iMed ” – Keane’s home-grown E.H.R. ( not acquired!)