2. 4th of Today’s Leading Vendors
• This week we continue the HIS-tory of
today’s leading HIS vendors: QuadraMed,
who acquired both Compucare and HDS.
- $3.2B = McKesson, née HBOC = Walt Huff, Bruce Barrington, & David Owens
- $2.2B = Cerner, still run by Neal Patterson, co-founded with Cliff Illig
- $1.7B (est) = Siemens, née SMS: Jim Macaleer, Harvey Wilson & Clyde Hyde
- $1.4B = Allscripts, née Eclipsys, also founded by Harvey Wilson of SMS.
- $1.2B = Epic. Gee, I have to wonder, just who was it who founded them?
- $900M (est) - GE Healthcare, née IDX/PHAMIS: created by Malcolm Gleser
- $545M = Meditech, still run after all these years by AntoninoPapallardo
- $353M = NextGen: new Opus & old Sphere financials by FlorianWeiland
- $174M = CPSI (Computer Products & Services Inc), founded by David Dye
- $170M = QuadraMed, née Compucare, founded by Marsh, Freibrun& Co.
- $160M = Keane, parent giant by John Keane, but HIS div. built by Ray Paris
- $110M = HMS (Healthcare Management Systems), Tom Givens & John Doss
- $70M (est) = Healthland, formerly Dairyland, founded by Steve Klick
3. Acquisition-itis
• The HIS-tory of QuadraMed, before they gained fame in the HIS
industry by acquiring Compucare, is an amazing tale of mergers &
acquisitions, more than any other vendor except HBO/McKesson!
• Incorporated in 1993, check out this amazing list of 28 QM deals:
COMPANY DEAL DATE
Coast Micro, Inc. Asset Purchase October 1993
Seton Financial Merger December 1993
Health Tech, Inc. Asset Purchase June 1994
Healthcare Design Systems Asset Purchase December 1995
InterMed Healthcare Systems, Inc. Merger December 1996
Healthcare Recovery. dba Synergy Merger March 1997
Queen City Microsystems, Inc. Merger July 1997
Healthcare Revenue Management, Inc. Merger September 1997
Medicus Systems Corporation Merger November 1997
Fleming Softlink Systems, Inc. Merger December 1997
Resource Health Partners, L.P. Merger December 1997
Rothenberg Health Systems, Inc. Merger December 1997
Healthcare Research Affiliates, Inc. Merger December 1997
IPN, Inc. Merger December 1997
4. Acquisitions, cont’d
• Recognize any of these? The only one I recognize is Compucare!
COMPANY DEAL DATE
Healthcare Cash Management Seminars, Inc. Asset Purchase January 1998
American Medical Network, Inc. Asset Purchase January 1998
Cabot Marsh Corporation Merger Feb, 1998
Velox Systems Corporation Merger March 1998
Vision Software, Inc. Merger May 1998
Pyramid Health Group, Inc. Merger June 1998
MetriCor, Inc. Merger June 1998
American Hospital Directory, Inc. Asset Purchase July 1998
CodeMaster Corporation Merger August 1998
Integrated Medical Networks, Inc. Merger Sept, 1998
Premier Healthcare Corporation Merger Dec, 1998
The Compucare Company Merger March 1999
Health Systems Integration, Inc.
& Pro Intermed, Inc. Merger March 1999
Millennium Consulting Services, LLC Asset Purchase May 1999
Healthcare Financial Informatics Merger June 1999
LinkSoft Technologies, Inc. Merger June 1999
Med Data Systems, Inc. Asset Purchase July 1999
5. More HIS-tory Heroes!
• For the inside story of how Compucare fared once QuadraMed
acquired it, I must thank on old friend (he’s much younger than
me; I’ve just known him for a long time): Frank Pecaitis.
• His resume before/after Compucare is another mini-HIS-tory:
– Frank cut his HIS teeth working for Tony Mirigliani, one of the
all-time greats at SMS in the ‘70s, at HUP in Philadelphia.
- Remember ArnieCaplan’s great T-shirt
from the PHS conversion there:
- Anybody who can tell me how to get in
touch with Tony gets a steak dinner!
• Frank went to PHS (which was later acquired by Keane) after they
installed “PatCom” at HUP and learned the ropes of sales there.
• In 1992, he became a rep at Compucare, selling Affinity so well
they made him West Region VP of sales in ‘98.
6. The Next Big Thing
• Frank sold QuadraMed’s Affinity amazingly well throughout the
90s, as shown by the annual revenue growth chart shown below:
$-
$20,000,000.00
$40,000,000.00
$60,000,000.00
$80,000,000.00
$100,000,000.00
$120,000,000.00
$140,000,000.00
$160,000,000.00
$180,000,000.00
$200,000,000.00
1 2 3 4 5 6 7 8
Compucare/QuadraMed Annual Revenue
1998 1997 1996 1995 1994 1993 1992 1991
7. Sales Superstar…
• In 1999, after QuadraMed acquired Compucare, Frank became
VP of Sales & Marketing for their “Enterprise Division” product
line (Affinity). Affinity was growing in market share and #1 in
KLAS at the time (wasn’t every vendor at some point in time?).
• In truth, Affinity sold amazingly well, including sales to such big
name facilities as LA County (LACO) and Orlando Regional Health
System in FLA. Eventually, almost 200 hospitals bought Affinity…
• After so many successful years at
QuadraMed, Frank left to become VP of
Sales atMedSphere, a pioneering “Open”
system vendor, selling the VA’s “OpenVista”
EMR to community hospitals.
• He is currently VP of Sales for GE
Healthcare’s Centricity series, and can be
reached at Frank.Pecaitis@GE.com
8. Turnover at the Top
• Unlike Meditech and Epic, where one CEO has rules the firm since
its inception, Compucare/QuadraMed had a series of leaders:
– After Ron Aprahamian turned the operating reigns
over to Ransom Parker in the early ’90s (Randy is
back with Ron at Hooper-Holmes today!).
– Their successor after the acquisition was Jim
Durham, who guided QuadraMed through the
myriad of mergers & acquisitions of the 90s.
– Jim turned things over the Nancy Nelson, then:
– Keith Hagan who had been the chief tech guru
at Compucare, and came back to lead it in 2006...
• The next CEO steered QuadraMed through some incredibly
difficult times that rocked the entire US economy, and involved
the death of biggest and most prestigious of the “Big Eight” CPAs.
9. Next Week: QuadraMed’s
“Near Death” Experience
• How in the world did Ken Lay’s self-
destruction nearly kill QuadraMed?
• And who guided the firm through
those troubled waters, turning it
around almost as miraculously as Ron
Aprahamian’s buy/sells of Compucare?
• Stay tuned for Frank’s tale next week…
• And in case you missed any prior
episodes of our HIS-tory series (or want
to check outyour HIS vendor’s many
product & executive ups & downs over
the years), hop over to our web site and
enjoy the past episodes at: HISPros.com
