19. minis keane

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19. minis keane

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

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