116. mc k part 5 hbo
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H.I.S.-tory episode #116 provides a recap of HBOC's evolution through the 1980s and early 1990s via mergers and acquisitions that positioned it as the top healthcare information systems vendor, surpassing former leader SMS. In 1994, HBOC acquired IBAX, formed from previous mergers including DCC and JS Data, making HBOC the dominant vendor across large, medium, and small hospitals. HBOC re-branded IBAX's competing product lines as "Series" systems to integrate them. The episode teases an upcoming discussion of HBOC's second mega-merger in the 1990s involving a small HIS vendor and two large corporations that tried but failed
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117. mc k part 6 amex
This document summarizes the history of healthcare IT company acquisitions and mergers involving McKesson. It details how McKesson grew through acquiring other companies like IBAX in 1994 and AMEX in 1995. AMEX had previously acquired Systems Associates Inc. and part of McAuto, combining them. McKesson then acquired AMEX's health systems group in 1995. As a result of these acquisitions, McKesson vaulted to the top position in annual revenue in the healthcare IT industry by 1999, a spot they have maintained since.
118. mc k part 7 cycare
The document summarizes the acquisition of CyCare Systems by HBOC (now McKesson) in 1996. It provides background on CyCare, which was founded in Iowa in 1967 and had grown to be a leading provider of physician billing and practice management systems. By 1996, CyCare had over 5,000 clients and $63 million in annual revenue. HBOC acquired CyCare in a stock swap deal valued at over $120 per share, significantly expanding HBOC's product lines and client base in both hospital and physician markets. The acquisition of CyCare and two other companies that same year established HBOC as a major player in several healthcare IT sectors.
115. mc k part 4 hbo
HBOC continued expanding its product line in the late 1970s and 1980s through both internal development and acquisitions. In 1975, HBOC developed its financial system called IFAS to complement its clinical system MEDPRO. In 1981, HBOC acquired Medical Data Corporation, founded by pioneer Ralph Korpman, and its clinical lab system ClinPro. In 1985, two major acquisitions expanded HBOC's offerings significantly - management consulting firm Amherst Associates and mainframe software vendor Mediflex. This catapulted HBOC to the number 2 spot in annual revenue in the hospital information systems industry by the late 1980s.
120. mckesson part 8 deal
The document summarizes a large merger and acquisition deal between McKesson and HBOC that set a new high in financial terms at $14.5 billion but ultimately unraveled due to accounting issues. The combined company had significant client reach but its stock prices plummeted over 50% when it was found they had to restate earnings. In the following year, the company continued to report worsening headlines and downward spiral until the deal collapsed.
114. mc k part 3 hbo
Dan Mowery, who was the 14th employee at HBO, introduced the author to another HBO pioneer, Dan La Benne. La Benne headed the addition of nursing modules to MEDPRO to meet client needs. MEDPRO was very successful for HBO, achieving 44.7% growth from 1979 to 1980. However, HBO faced financial challenges adding new products and services. This led them to seek funding from banks, where a young loan analyst named Larry Gerdes was so impressed that he later joined HBO as CFO. HBO struggled with name confusion with the television network HBO and later became known as HBOC.
111. vendor c suite a
This document summarizes an episode of the podcast "H.I.S.-tory" by Vince Ciotti. It includes:
1) Corrections to spelling mistakes from a previous episode and stories of other spelling errors Ciotti made in his career.
2) Thanks to industry experts who helped Ciotti identify executives from early healthcare IT vendors, including details about some of the pioneering projects and people involved.
3) A large spreadsheet with 4 quadrants listing founders and executives of major and minor healthcare IT vendors from the 1960s to today.
4) Short biographies of the founders of the top 10 healthcare IT vendors by revenue today, including their names and the companies they established
113. mc k part 2 osf
H.I.S.-tory podcast host Vince Ciotti summarizes an episode about the founding of HBO Systems by Walter Huff, Bruce Barrington, and Richard Owens. The episode traces their early careers working with Urban Gerber at OSF Healthcare to develop the CRASH and SHIS systems in the 1960s and 1970s. It describes how Barrington and Owens left to independently develop the Four Phase-based MedPro system, which formed the basis for HBO. The summary provides key details about the people and events involved in the founding of one of the major HIS vendors.
60. hms, part 2
Tom Givens and John Doss co-founded Healthcare Management Systems (HMS) in 1984 after gaining experience implementing systems for American Medical Centers. They focused initially on hospital chains and grew with IBM systems, helping standalone hospitals adopt minicomputers. HMS specialized in corporate reporting and won clients over larger systems. By automating chains, HMS became a leading vendor for small hospitals. The story will continue next week through HMS' growth into clinical systems and recent acquisitions.
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117. mc k part 6 amex
This document summarizes the history of healthcare IT company acquisitions and mergers involving McKesson. It details how McKesson grew through acquiring other companies like IBAX in 1994 and AMEX in 1995. AMEX had previously acquired Systems Associates Inc. and part of McAuto, combining them. McKesson then acquired AMEX's health systems group in 1995. As a result of these acquisitions, McKesson vaulted to the top position in annual revenue in the healthcare IT industry by 1999, a spot they have maintained since.
118. mc k part 7 cycare
The document summarizes the acquisition of CyCare Systems by HBOC (now McKesson) in 1996. It provides background on CyCare, which was founded in Iowa in 1967 and had grown to be a leading provider of physician billing and practice management systems. By 1996, CyCare had over 5,000 clients and $63 million in annual revenue. HBOC acquired CyCare in a stock swap deal valued at over $120 per share, significantly expanding HBOC's product lines and client base in both hospital and physician markets. The acquisition of CyCare and two other companies that same year established HBOC as a major player in several healthcare IT sectors.
115. mc k part 4 hbo
HBOC continued expanding its product line in the late 1970s and 1980s through both internal development and acquisitions. In 1975, HBOC developed its financial system called IFAS to complement its clinical system MEDPRO. In 1981, HBOC acquired Medical Data Corporation, founded by pioneer Ralph Korpman, and its clinical lab system ClinPro. In 1985, two major acquisitions expanded HBOC's offerings significantly - management consulting firm Amherst Associates and mainframe software vendor Mediflex. This catapulted HBOC to the number 2 spot in annual revenue in the hospital information systems industry by the late 1980s.
120. mckesson part 8 deal
The document summarizes a large merger and acquisition deal between McKesson and HBOC that set a new high in financial terms at $14.5 billion but ultimately unraveled due to accounting issues. The combined company had significant client reach but its stock prices plummeted over 50% when it was found they had to restate earnings. In the following year, the company continued to report worsening headlines and downward spiral until the deal collapsed.
114. mc k part 3 hbo
Dan Mowery, who was the 14th employee at HBO, introduced the author to another HBO pioneer, Dan La Benne. La Benne headed the addition of nursing modules to MEDPRO to meet client needs. MEDPRO was very successful for HBO, achieving 44.7% growth from 1979 to 1980. However, HBO faced financial challenges adding new products and services. This led them to seek funding from banks, where a young loan analyst named Larry Gerdes was so impressed that he later joined HBO as CFO. HBO struggled with name confusion with the television network HBO and later became known as HBOC.
111. vendor c suite a
This document summarizes an episode of the podcast "H.I.S.-tory" by Vince Ciotti. It includes:
1) Corrections to spelling mistakes from a previous episode and stories of other spelling errors Ciotti made in his career.
2) Thanks to industry experts who helped Ciotti identify executives from early healthcare IT vendors, including details about some of the pioneering projects and people involved.
3) A large spreadsheet with 4 quadrants listing founders and executives of major and minor healthcare IT vendors from the 1960s to today.
4) Short biographies of the founders of the top 10 healthcare IT vendors by revenue today, including their names and the companies they established
113. mc k part 2 osf
H.I.S.-tory podcast host Vince Ciotti summarizes an episode about the founding of HBO Systems by Walter Huff, Bruce Barrington, and Richard Owens. The episode traces their early careers working with Urban Gerber at OSF Healthcare to develop the CRASH and SHIS systems in the 1960s and 1970s. It describes how Barrington and Owens left to independently develop the Four Phase-based MedPro system, which formed the basis for HBO. The summary provides key details about the people and events involved in the founding of one of the major HIS vendors.
60. hms, part 2
Tom Givens and John Doss co-founded Healthcare Management Systems (HMS) in 1984 after gaining experience implementing systems for American Medical Centers. They focused initially on hospital chains and grew with IBM systems, helping standalone hospitals adopt minicomputers. HMS specialized in corporate reporting and won clients over larger systems. By automating chains, HMS became a leading vendor for small hospitals. The story will continue next week through HMS' growth into clinical systems and recent acquisitions.
112. mckesson part 1
This document provides an overview of McKesson and its history as a healthcare IT vendor. Some key points:
- McKesson is currently the largest healthcare IT vendor by revenue, generating $3.2 billion in 2012.
- The company traces its roots back to 1833 when it was founded to import and sell drugs wholesale.
- In 1963, Walt Huff started his healthcare IT career and later founded HBO, which was acquired by McKesson in 1999 for $14 billion.
- McKesson achieved its current size through numerous acquisitions over the decades, including HBO and other pioneers in the industry.
- The document outlines the upcoming episodes that will provide
115. mc k part 4 hboc
HBOC continued expanding its product line in the late 1970s and 1980s through both internal development and acquisitions. This included developing a financial system called IFAS on HP3000 minicomputers. In 1981, HBOC acquired Medical Data Corporation, founded by pioneer Ralph Korpman, and its LIS system ClinPro. Major acquisitions in 1985 included consulting firm Amherst Associates and mainframe software vendor Mediflex, greatly increasing HBOC's size and capabilities. By the late 1980s, HBOC had become the second largest healthcare IT company through its range of systems across different hardware platforms.
114. mc k part 3 hbo
H.I.S.-tory podcast episode #114 provides a history of McKesson and profiles Dan La Benne, one of the earliest employees of HBO. La Benne recalls attending training classes with Vince Ciotti in the 1970s and describes leaving SMS to join HBO as its 14th employee. The episode details how HBO was founded in 1973 by Walt Huff, Bruce Barrington, and Dick Rezabek and their first product MEDPRO, which was popular among small and mid-sized hospitals. HBO experienced rapid growth, requiring loans to fund expansion. The episode closes with an anecdote about name confusion between HBO and Home Box Office.
113. mc k part 2 osf
The document provides an episode summary of the history of HBO, focusing on its founders Walter Huff, Bruce Barrington, and Richard Owens. It describes how Huff became frustrated with the patient accounting system at OSF Healthcare where he worked and how Barrington created the first system called CRASH. It also notes how Urban Gerber, who had previously implemented a system at OSF, helped inspire their work. The summary then discusses how CRASH and a related system called SHIS were later commercialized and acquired by McDonnell Douglas, forming the basis for HBO.
100. siemens, part 1
This document provides a summary of the origins of Siemens' hospital information systems and its predecessor, Shared Hospital Accounting System (SHAS). It describes how SHAS was developed by IBM in the 1960s to allow small-to-mid sized hospitals to share mainframe systems. Over time, Shared Medical Systems (SMS) was formed and grew to develop systems like MedSeries 4 based on the SHAS platform. Siemens later acquired SMS and its products like Invision, Medseries and Soarian, which have roots in SHAS and SMS's earlier systems. The document solicits recollections from industry veterans on the origins and development of SHAS in its early days.
101. siemens, part 2
This document summarizes the early history of Shared Medical Systems (SMS) from 1969-1981:
- SMS was founded in 1969 and grew from a small startup with 24 employees to become the largest healthcare IT vendor, developing early database and billing systems like UNIFILE to automate hospitals.
- In the early days, SMS employees worked long hours to develop the systems and support clients with little experience. Many early clients and implementations faced challenges common to new software.
- SMS developed innovative technologies that helped automate hospitals and deal with issues like the Year 2000 problem, but growth also caused performance issues that were later addressed.
- The story highlights both the challenges and rewards of working with innovative young companies versus established large vendors
69. quadra med compucare
1) Ron Aprahamian acquired Compucare in the 1970s and switched its platform from mainframes to minicomputers using Meditech's proprietary MUMPS-based system.
2) Under Aprahamian's leadership, Compucare grew rapidly, went public, and was acquired by Baxter for $40 million.
3) Aprahamian later reacquired Compucare's products for $7 million and renamed it Affinity, developing it into an "open system" that could run on multiple hardware platforms.
4) By the late 1990s, Compucare had over 100 Affinity installations and $100 million in revenue when it was acquired by QuadraMed, the
85. meditech part 3
Meditech began in 1969 using the MUMPS programming language and wrote systems for various clients on a time-sharing basis. They renamed their MUMPS variant MIIS and wrote their first healthcare product for Cape Cod Hospital in 1970. Around 1979, Meditech introduced their Magic programming language. In the 1990s, Meditech released their "Client/Server" system to take advantage of the client-server model. Their most recent platform is Meditech's Advanced Technology (MAT), also known as Release 6.0. Meditech has grown to serve over 2,300 healthcare clients worldwide.
77. cpsi part 2
This document provides an overview of CPSI and their success in the small hospital market. Some key points:
1) CPSI is a leading vendor for small hospitals under 100 beds, currently serving around 650 client hospitals.
2) CPSI has experienced impressive revenue growth over the past 20 years, surpassing estimates for competitors like Keane and QuadraMed.
3) Much of CPSI's early success is attributed to hiring an effective salesman from NCR, Scott Schneider, who helped steer CPSI towards focusing on the small hospital market.
4) CPSI developed their software using the COBOL programming language and UNIX operating system, allowing their solutions to run on a variety of hardware
104. cerner, part 1
This document provides a summary of the early history of the healthcare IT company Cerner. It describes how Cerner was founded in 1979 by Neal Patterson, Cliff Illig, and Paul Gorup under the name PGI. All three founders met while working at the consulting firm Arthur Andersen. The summary outlines their educational backgrounds and some of PGI's first clients in healthcare, including four hospitals in Kansas and Oklahoma. PGI later changed its name to Cerner and focused on developing clinical and laboratory software systems.
84. meditech part 2
This document discusses the history and founders of Meditech, a long-lived healthcare IT vendor. It describes how Neil Pappalardo, the son of Sicilian immigrants, founded Meditech in 1968 after working on early hospital information systems at Massachusetts General Hospital under Dr. Octo Barnett. It highlights Neil and Larry Polimeno's decades of leadership at Meditech, as well as other early executives. The next installment will cover Meditech's early product development history.
70. quadra med part 2
This document summarizes the history of QuadraMed, a healthcare IT company formed through numerous acquisitions. It details QuadraMed's acquisition of Compucare in 1999 and 28 other companies between 1993-1999. It also discusses several influential executives at Compucare and QuadraMed, including Frank Pecaitis and his sales success with QuadraMed's Affinity product. The document teases a "near death experience" for QuadraMed due to the downfall of Arthur Andersen in the next weekly installment.
HIStory 11
- Shared Medical Systems (SMS) was a pioneering healthcare IT company founded in 1969 by ex-IBM employees Jim Macaleer, Harvey Wilson, and Clyde Hyde that developed one of the first electronic health record and hospital information systems called SHAS.
- SMS grew rapidly over the 1970s and 1980s from a few employees and hospitals to over 7,000 employees and annual revenues of over $1 billion serving thousands of hospitals by providing the core SHAS system and additional applications on IBM mainframe computers.
- SMS was acquired by Siemens in 2000 for $2 billion after generating over $22 billion in total revenues and leaving a lasting impact on digitalizing healthcare records and systems.
98. epic part 4
Epic has dominated the large hospital market in recent years due to its truly integrated software that provides the same experience for physicians in hospitals and practices. While other vendors offer separate inpatient and ambulatory systems, Epic's single code base allows seamless use across settings. This integration has helped win many large healthcare organizations by satisfying physicians who are the most important users. However, Epic is not perfect and also faces challenges like cost overruns and weaker specialty applications. Overall, Epic has been uniquely successful due to its singular focus on clinical integration compared to competitors' more fragmented product histories.
82. next gen part 4
Computer Synergy was acquired by SMS in 1985 and renamed Spirit. After integration issues, it reverted to the Allegra name. In 2001, former Allegra client Rick Opry acquired rights to Allegra and renamed his company IntraNexus. In 2011, Quality Systems acquired IntraNexus for $4.9 million, bringing the NextGen product line together through a series of acquisitions spanning several decades. The next episode will cover Meditech, known for longevity and no acquisitions over 40+ years in business.
11. sms
Shared Medical Systems (SMS) was founded in 1969 by three former IBM employees and grew to become the largest shared medical systems company, processing data for hundreds of hospitals. SMS originated from a small storefront in Bridgeport, Pennsylvania and grew rapidly due to successful sales and an ability to customize IBM's SHAS system to meet hospital needs. At its peak, SMS had over 7,000 employees and $1.2 billion in annual revenue before being acquired by Siemens for $2 billion in 2000. In total over its 40 year history, SMS generated an estimated $22 billion in revenue, transforming what began as a small startup into one of the largest healthcare IT companies.
83. meditech part 1
Meditech is one of the oldest and largest healthcare IT vendors, founded in 1969. It has maintained independence and the same senior leadership for over 40 years. With over $500M in annual revenue and more than 2,300 clients worldwide, primarily hospitals, Meditech has three generations of software systems and a large installed base, especially in Canada. In the next episodes, the document's author will provide more details on each generation of Meditech's systems with help from a legal expert with decades of experience working at Meditech.
68. keane 6 first coast
This document summarizes the acquisitions of two healthcare IT companies, First Coast Systems and Source Data Systems, by Keane Inc. in the late 1990s and early 2000s. It provides background on each company, including their founding, product offerings, client bases, and revenues prior to being acquired by Keane. It then discusses how each company's products were integrated or sunset by Keane in subsequent years.
124. jim macaleer
Jim Macaleer, the co-founder and CEO of Shared Medical Systems, passed away last week. He helped pioneer the healthcare information systems industry by co-founding SMS in 1969 with Harvey Wilson and Clyde Hyde. Under Jim's leadership, SMS grew from a small startup with 10 hospitals to a company with over 7,000 employees and $1.2 billion in annual revenue before being acquired by Siemens. Jim was a strong and caring leader who helped many employees build successful careers and generously shared the company's stock gains. He grew SMS into an enormously successful company through hard work and perseverance.
12. mc auto
McAuto, the IT arm of aircraft company McDonnell-Douglas, was a major leader in the shared healthcare IT systems revolution of the 1970s. It acquired Hospital Financial Control (HFC) from developer Walt Huff and ran it as the core of its new Healthcare Services Division (HSD). HSD developed several innovative clinical and administrative systems, such as one of the first electronic medical record systems. Although McAuto had superior technology, its parent company was eventually acquired and HSD's systems were later sold to HBOC, coming full circle back to Walt Huff's company.
77. cpsi part 2
CPSI is a leading vendor for small hospitals, currently serving around 650 client hospitals, most under 100 beds. They have experienced impressive revenue growth over the past 20 years, surpassing estimates for competitors like Keane and QuadraMed in 2011. CPSI achieved success by focusing exclusively on the small hospital market and hiring Scott Schneider, an effective NCR salesman, as their 11th employee. Under Schneider and later John Morrissey as VP of Sales, CPSI was able to build a national sales force. Technically, CPSI adopted an "open" approach using UNIX and later Linux operating systems. They also developed their software suite internally over many years to include more applications than competitors, such as their own PACS and time
102. siemens, part 3
This document provides a summary of the evolution of products developed and sold by Siemens over several decades, beginning with mainframe systems in the 1960s and shared systems in the 1970s. Key products discussed include the SHAS patient accounting system, Eagle billing system, Independence inhouse system, and Invision mainframe system. The document traces how these products changed names and were developed over time, with some like RCM and Soarian still in use today. It previews that next week's discussion will cover mini and micro computer-based products from the 1980s and 1990s.
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112. mckesson part 1
This document provides an overview of McKesson and its history as a healthcare IT vendor. Some key points:
- McKesson is currently the largest healthcare IT vendor by revenue, generating $3.2 billion in 2012.
- The company traces its roots back to 1833 when it was founded to import and sell drugs wholesale.
- In 1963, Walt Huff started his healthcare IT career and later founded HBO, which was acquired by McKesson in 1999 for $14 billion.
- McKesson achieved its current size through numerous acquisitions over the decades, including HBO and other pioneers in the industry.
- The document outlines the upcoming episodes that will provide
115. mc k part 4 hboc
HBOC continued expanding its product line in the late 1970s and 1980s through both internal development and acquisitions. This included developing a financial system called IFAS on HP3000 minicomputers. In 1981, HBOC acquired Medical Data Corporation, founded by pioneer Ralph Korpman, and its LIS system ClinPro. Major acquisitions in 1985 included consulting firm Amherst Associates and mainframe software vendor Mediflex, greatly increasing HBOC's size and capabilities. By the late 1980s, HBOC had become the second largest healthcare IT company through its range of systems across different hardware platforms.
114. mc k part 3 hbo
H.I.S.-tory podcast episode #114 provides a history of McKesson and profiles Dan La Benne, one of the earliest employees of HBO. La Benne recalls attending training classes with Vince Ciotti in the 1970s and describes leaving SMS to join HBO as its 14th employee. The episode details how HBO was founded in 1973 by Walt Huff, Bruce Barrington, and Dick Rezabek and their first product MEDPRO, which was popular among small and mid-sized hospitals. HBO experienced rapid growth, requiring loans to fund expansion. The episode closes with an anecdote about name confusion between HBO and Home Box Office.
113. mc k part 2 osf
The document provides an episode summary of the history of HBO, focusing on its founders Walter Huff, Bruce Barrington, and Richard Owens. It describes how Huff became frustrated with the patient accounting system at OSF Healthcare where he worked and how Barrington created the first system called CRASH. It also notes how Urban Gerber, who had previously implemented a system at OSF, helped inspire their work. The summary then discusses how CRASH and a related system called SHIS were later commercialized and acquired by McDonnell Douglas, forming the basis for HBO.
100. siemens, part 1
This document provides a summary of the origins of Siemens' hospital information systems and its predecessor, Shared Hospital Accounting System (SHAS). It describes how SHAS was developed by IBM in the 1960s to allow small-to-mid sized hospitals to share mainframe systems. Over time, Shared Medical Systems (SMS) was formed and grew to develop systems like MedSeries 4 based on the SHAS platform. Siemens later acquired SMS and its products like Invision, Medseries and Soarian, which have roots in SHAS and SMS's earlier systems. The document solicits recollections from industry veterans on the origins and development of SHAS in its early days.
101. siemens, part 2
This document summarizes the early history of Shared Medical Systems (SMS) from 1969-1981:
- SMS was founded in 1969 and grew from a small startup with 24 employees to become the largest healthcare IT vendor, developing early database and billing systems like UNIFILE to automate hospitals.
- In the early days, SMS employees worked long hours to develop the systems and support clients with little experience. Many early clients and implementations faced challenges common to new software.
- SMS developed innovative technologies that helped automate hospitals and deal with issues like the Year 2000 problem, but growth also caused performance issues that were later addressed.
- The story highlights both the challenges and rewards of working with innovative young companies versus established large vendors
69. quadra med compucare
1) Ron Aprahamian acquired Compucare in the 1970s and switched its platform from mainframes to minicomputers using Meditech's proprietary MUMPS-based system.
2) Under Aprahamian's leadership, Compucare grew rapidly, went public, and was acquired by Baxter for $40 million.
3) Aprahamian later reacquired Compucare's products for $7 million and renamed it Affinity, developing it into an "open system" that could run on multiple hardware platforms.
4) By the late 1990s, Compucare had over 100 Affinity installations and $100 million in revenue when it was acquired by QuadraMed, the
85. meditech part 3
Meditech began in 1969 using the MUMPS programming language and wrote systems for various clients on a time-sharing basis. They renamed their MUMPS variant MIIS and wrote their first healthcare product for Cape Cod Hospital in 1970. Around 1979, Meditech introduced their Magic programming language. In the 1990s, Meditech released their "Client/Server" system to take advantage of the client-server model. Their most recent platform is Meditech's Advanced Technology (MAT), also known as Release 6.0. Meditech has grown to serve over 2,300 healthcare clients worldwide.
77. cpsi part 2
This document provides an overview of CPSI and their success in the small hospital market. Some key points:
1) CPSI is a leading vendor for small hospitals under 100 beds, currently serving around 650 client hospitals.
2) CPSI has experienced impressive revenue growth over the past 20 years, surpassing estimates for competitors like Keane and QuadraMed.
3) Much of CPSI's early success is attributed to hiring an effective salesman from NCR, Scott Schneider, who helped steer CPSI towards focusing on the small hospital market.
4) CPSI developed their software using the COBOL programming language and UNIX operating system, allowing their solutions to run on a variety of hardware
104. cerner, part 1
This document provides a summary of the early history of the healthcare IT company Cerner. It describes how Cerner was founded in 1979 by Neal Patterson, Cliff Illig, and Paul Gorup under the name PGI. All three founders met while working at the consulting firm Arthur Andersen. The summary outlines their educational backgrounds and some of PGI's first clients in healthcare, including four hospitals in Kansas and Oklahoma. PGI later changed its name to Cerner and focused on developing clinical and laboratory software systems.
84. meditech part 2
This document discusses the history and founders of Meditech, a long-lived healthcare IT vendor. It describes how Neil Pappalardo, the son of Sicilian immigrants, founded Meditech in 1968 after working on early hospital information systems at Massachusetts General Hospital under Dr. Octo Barnett. It highlights Neil and Larry Polimeno's decades of leadership at Meditech, as well as other early executives. The next installment will cover Meditech's early product development history.
70. quadra med part 2
This document summarizes the history of QuadraMed, a healthcare IT company formed through numerous acquisitions. It details QuadraMed's acquisition of Compucare in 1999 and 28 other companies between 1993-1999. It also discusses several influential executives at Compucare and QuadraMed, including Frank Pecaitis and his sales success with QuadraMed's Affinity product. The document teases a "near death experience" for QuadraMed due to the downfall of Arthur Andersen in the next weekly installment.
HIStory 11
- Shared Medical Systems (SMS) was a pioneering healthcare IT company founded in 1969 by ex-IBM employees Jim Macaleer, Harvey Wilson, and Clyde Hyde that developed one of the first electronic health record and hospital information systems called SHAS.
- SMS grew rapidly over the 1970s and 1980s from a few employees and hospitals to over 7,000 employees and annual revenues of over $1 billion serving thousands of hospitals by providing the core SHAS system and additional applications on IBM mainframe computers.
- SMS was acquired by Siemens in 2000 for $2 billion after generating over $22 billion in total revenues and leaving a lasting impact on digitalizing healthcare records and systems.
98. epic part 4
Epic has dominated the large hospital market in recent years due to its truly integrated software that provides the same experience for physicians in hospitals and practices. While other vendors offer separate inpatient and ambulatory systems, Epic's single code base allows seamless use across settings. This integration has helped win many large healthcare organizations by satisfying physicians who are the most important users. However, Epic is not perfect and also faces challenges like cost overruns and weaker specialty applications. Overall, Epic has been uniquely successful due to its singular focus on clinical integration compared to competitors' more fragmented product histories.
82. next gen part 4
Computer Synergy was acquired by SMS in 1985 and renamed Spirit. After integration issues, it reverted to the Allegra name. In 2001, former Allegra client Rick Opry acquired rights to Allegra and renamed his company IntraNexus. In 2011, Quality Systems acquired IntraNexus for $4.9 million, bringing the NextGen product line together through a series of acquisitions spanning several decades. The next episode will cover Meditech, known for longevity and no acquisitions over 40+ years in business.
11. sms
Shared Medical Systems (SMS) was founded in 1969 by three former IBM employees and grew to become the largest shared medical systems company, processing data for hundreds of hospitals. SMS originated from a small storefront in Bridgeport, Pennsylvania and grew rapidly due to successful sales and an ability to customize IBM's SHAS system to meet hospital needs. At its peak, SMS had over 7,000 employees and $1.2 billion in annual revenue before being acquired by Siemens for $2 billion in 2000. In total over its 40 year history, SMS generated an estimated $22 billion in revenue, transforming what began as a small startup into one of the largest healthcare IT companies.
83. meditech part 1
Meditech is one of the oldest and largest healthcare IT vendors, founded in 1969. It has maintained independence and the same senior leadership for over 40 years. With over $500M in annual revenue and more than 2,300 clients worldwide, primarily hospitals, Meditech has three generations of software systems and a large installed base, especially in Canada. In the next episodes, the document's author will provide more details on each generation of Meditech's systems with help from a legal expert with decades of experience working at Meditech.
68. keane 6 first coast
This document summarizes the acquisitions of two healthcare IT companies, First Coast Systems and Source Data Systems, by Keane Inc. in the late 1990s and early 2000s. It provides background on each company, including their founding, product offerings, client bases, and revenues prior to being acquired by Keane. It then discusses how each company's products were integrated or sunset by Keane in subsequent years.
124. jim macaleer
Jim Macaleer, the co-founder and CEO of Shared Medical Systems, passed away last week. He helped pioneer the healthcare information systems industry by co-founding SMS in 1969 with Harvey Wilson and Clyde Hyde. Under Jim's leadership, SMS grew from a small startup with 10 hospitals to a company with over 7,000 employees and $1.2 billion in annual revenue before being acquired by Siemens. Jim was a strong and caring leader who helped many employees build successful careers and generously shared the company's stock gains. He grew SMS into an enormously successful company through hard work and perseverance.
12. mc auto
McAuto, the IT arm of aircraft company McDonnell-Douglas, was a major leader in the shared healthcare IT systems revolution of the 1970s. It acquired Hospital Financial Control (HFC) from developer Walt Huff and ran it as the core of its new Healthcare Services Division (HSD). HSD developed several innovative clinical and administrative systems, such as one of the first electronic medical record systems. Although McAuto had superior technology, its parent company was eventually acquired and HSD's systems were later sold to HBOC, coming full circle back to Walt Huff's company.
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CPSI is a leading vendor for small hospitals, currently serving around 650 client hospitals, most under 100 beds. They have experienced impressive revenue growth over the past 20 years, surpassing estimates for competitors like Keane and QuadraMed in 2011. CPSI achieved success by focusing exclusively on the small hospital market and hiring Scott Schneider, an effective NCR salesman, as their 11th employee. Under Schneider and later John Morrissey as VP of Sales, CPSI was able to build a national sales force. Technically, CPSI adopted an "open" approach using UNIX and later Linux operating systems. They also developed their software suite internally over many years to include more applications than competitors, such as their own PACS and time
102. siemens, part 3
This document provides a summary of the evolution of products developed and sold by Siemens over several decades, beginning with mainframe systems in the 1960s and shared systems in the 1970s. Key products discussed include the SHAS patient accounting system, Eagle billing system, Independence inhouse system, and Invision mainframe system. The document traces how these products changed names and were developed over time, with some like RCM and Soarian still in use today. It previews that next week's discussion will cover mini and micro computer-based products from the 1980s and 1990s.
102. siemens, part 3
This document provides a summary of the evolution of products developed and sold by Siemens over several decades, beginning with mainframe systems in the 1960s and shared systems in the 1970s. Key products mentioned include SHAS, Eagle, Independence, Invision, and Soarian. The document traces the complex evolution and numerous name changes of these products. It highlights the long lifespan of these systems, with some clients still using products decades after they were first developed and implemented. The next episode will cover clinical products developed for minicomputers and microcomputers.
53. product names 1
This document discusses product names in the healthcare information systems industry. It begins by recapping the 52 previous episodes of the podcast. It then discusses how Shared Medical Systems (SMS) generally had the best product names, such as UNITY, EXACT, and INDEPENDENCE. Meanwhile, McAuto tended to use confusing acronyms for its product names. The document also examines some unusual product names from other vendors and how names were frequently changed as systems were acquired by different companies.
18. dcc
Dynamic Control Corporation (DCC) began as an in-house hospital information system developed by David Pomerance for Variety Children's Hospital. Pomerance later formed DCC, which grew rapidly by selling turnkey systems for IBM minicomputers. DCC was acquired by Baxter/Travenol/AHS and renamed Delta. Delta experienced continued success when partnered with IBM as part of IBAX and later acquired by HBOC and McKesson, with the system eventually renamed Series. DCC played a pivotal role in the growth of mini-computer based hospital information systems.
54. product names_2
- PHAMIS LastWord was an early electronic health record (EHR) system developed in the 1970s that kept records for sailors. It was later acquired by IDX and GE.
- Product names can provide indications of capabilities. For example, larger IBM computer models had more digits, suggesting more power.
- Medical software companies frequently change product names during acquisitions or when introducing new versions, making tracking name histories complex. Systems like JS Data, Dynamic Control, and IBM's PCS underwent numerous name changes as they were acquired over the years.
16. mini meditech
- Meditech originated from a lab at Massachusetts General Hospital that developed the MUMPS programming language and one of the earliest time-sharing systems. Two members of that lab, Neil Pappalardo and Robert Greenes, went on to found Meditech and American Health Systems, respectively.
- Meditech started as a small programming shop writing MUMPS code for various clients before winning its first hospital client, Cape Cod Hospital, in the early 1970s to automate the lab. Meditech gradually expanded its offerings at Cape Cod over the decades.
- By the 1980s, Meditech had grown into a major vendor offering a complete hospital information system to hundreds of clients worldwide, evolving through various
16. mini meditech
- Meditech originated from the work of researchers at Massachusetts General Hospital who developed the MUMPS programming language. Two researchers, Dr. Robert Greenes and Neil Pappalardo, later went on to form early versions of Meditech.
- Meditech started as a small programming shop developing departmental systems before growing to offer total hospital information systems. Their first client was Cape Cod Hospital in the 1970s.
- Over decades, Meditech evolved their product lines and customer base to become one of the largest hospital EHR vendors, with over 2,000 hospitals worldwide using their systems by 2011.
HIStory 12
McAuto's Healthcare Services Division (HSD) was an early pioneer in healthcare information systems. It began in the 1970s after acquiring Hospital Financial Control (HFC) from Walt Huff. HSD developed several innovative clinical systems like Hospital Patient Care that were among the first electronic medical record systems. While HSD led the industry technologically, SMS prioritized sales over service and was more successful financially. Eventually, HSD was acquired by HBOC, returning control of the system to Walt Huff where it had originated.
3. 2016 Mid-Range Vendors Elise Ames
This document summarizes mid-sized hospital information systems (HIS) vendors with annual revenues in the hundreds of millions of dollars. It discusses Meditech, NTT Data Medhost, and HMS/Medhost. For each vendor, it provides details on products, client base, revenue history, acquisitions, and future prospects. It also discusses a major acquisition involving NTT Data and the impact on its consulting business.
3. 2016 mid range vendors
This document summarizes mid-range hospital information system (HIS) vendors that target community hospitals with 100-300 beds. It discusses 5 vendors: Meditech, NTT Data Medhost, HMS/Medhost, QuadraMed, and their histories, products, revenues, acquisitions, and future prospects. Recent developments like Meditech's new integrated physician system and NTT Data's acquisition of Dell's consulting division are also mentioned. The document concludes by previewing coverage of small hospital HIS vendors in the next episode.
3. 2016 mid range vendors
This document summarizes mid-sized hospital information systems (HIS) vendors with annual revenues in the hundreds of millions of dollars. It discusses Meditech, NTT Data Medhost, and HMS/Medhost. For each vendor, it provides details on products, client base, revenue history, acquisitions, and future prospects. It also discusses a major acquisition involving NTT Data and the impact on its consulting business.
18. minis dcc
The document summarizes the history of Dynamic Control Corporation (DCC), an early healthcare IT company that developed turnkey mini-computer systems for hospitals. It describes how DCC was founded by David Pomerance after he developed one of the first hospital information systems on an IBM System 3 mini-computer for Variety Children's Hospital. DCC experienced rapid growth selling systems to other hospitals. It was later acquired by Baxter and became their flagship "mid-range" product called Delta, covering hospitals from 100-400 beds. The systems were later renamed as mergers and acquisitions by companies including IBM, HBOC, and McKesson occurred. The core DCC system evolved into McKesson's Series 2000 product,
58. dairyland, part 3
Dairyland Computing & Consulting grew through acquisitions of other small healthcare IT firms in the 1990s and 2000s, absorbing LeBlanc, Schexnayder & Associates, Henderman Management Systems, Integrated Health Systems, American HealthNet, and Advanced Professional Software. This expanded Dairyland's client base and product offerings. Dairyland was later acquired by venture capital firm Francisco Partners and renamed Healthland, though some remnants of the Dairyland name remained in use.
27. minis js data part 2
The document discusses the history of the healthcare IT company JS/Data, including its founding, acquisition by Baxter in 1984, and eventual merger with other Baxter products. It provides background on some key figures involved with JS/Data and highlights its use of IBM systems. The summary concludes with John Sacco's current retirement and relocation to France.
118. mc k part 7 cycare
The document summarizes the acquisition of CyCare Systems by HBOC (now McKesson) in 1996. It describes CyCare's origins in Iowa in 1967 and its growth through acquisitions of other companies like MSWI in 1985. By 1995, CyCare had over 5,000 clients and $63 million in annual revenue. HBOC acquired CyCare in a stock swap deal that same year, expanding its product line and market share. The acquisition of CyCare and two other companies that soon followed made HBOC a major player in several new healthcare IT markets.
103. siemens, part 4
SMS developed many mini and micro-based products to complement their mainframe systems. These included ACTIon, which ran on Four Phase and DEC minis, providing front-end access to the mainframe. SMS also acquired total mini-based HIS like Allegra and MedSeries4. Additionally, SMS pioneered PC-based networks with Harmony and developed the first versions of their ancillary systems on DEC minis before moving them to client-server architectures on PCs as Novius. Today Siemens still supports many of these legacy mini and micro-based products in hundreds of customer sites.
103. siemens, part 4
SMS developed many mini and micro-based products to complement their mainframe systems. These included ACTIon, which ran on Four Phase and DEC minis, providing front-end access to the mainframe. SMS also acquired total mini-based HIS like Allegra and MedSeries4. Additionally, SMS pioneered PC-based networks with Harmony and developed the first versions of their ancillary systems on DEC minis before moving them to client-server architectures on PCs as Novius. Today Siemens still supports many of these legacy mini and micro-based products in hundreds of customer sites.
24. minis ihc part i
The document discusses the history of Intermountain Healthcare (IHC) and its Med/38 hospital information system. It describes how IHC formed in 1975 and charged its IT department, later known as Affiliated Services Inc. (ASI), to build a modern clinical information system. ASI developed the Med/38 system using RPG code on IBM System/38 minicomputers. Med/38 was highly successful, with 70 hospitals implementing it within 3 years. The system included financial, clinical, and other applications ahead of its time.
60. hms, part 2
HMS was co-founded in 1984 by Tom Givens and John Doss in Nashville, Tennessee. They got their start by customizing software for the IBM System 32 minicomputers used by American Medical Centers hospitals. This led them to land Community Health Systems as their first client. HMS grew rapidly by partnering with IBM and selling to hospital chains. By next week's episode, HMS had grown to over 600 hospital clients and $100M in annual revenue, evolving from financial systems to clinical applications.
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More from Tim Histalk
HISsies 2020
The document summarizes the winners of the 2021 HISsies Awards, which honor the best and worst of healthcare IT as voted by readers of HIStalk. Some of the winners included Epic for Smartest Vendor Action Taken, Cerner for Stupidest Vendor Action Taken, Epic for Best Healthcare IT Vendor, IBM Watson Health for Worst Healthcare IT Vendor, Judy Faulkner of Epic for Best Leader of a Vendor, and Kaiser Permanente for Best Provider User of Healthcare IT. John Halamka of Mayo Clinic won several categories including Most Effective Healthcare IT Provider Executive.
HISsies 2019
The document summarizes the winners of the Twelfth Annual HISsies Awards which honors the best and worst of healthcare IT as voted by readers. Some of the categories and winners mentioned are:
- Smartest Vendor Action Taken in 2018: Cerner convinces the VA to choose its system without issuing an RFP.
- Stupidest Vendor Action Taken in 2018: Athenahealth hires Jeff Immelt, fires Jonathan Bush, and prematurely enters the inpatient market.
- Best Healthcare IT Vendor or Consulting Firm in 2018: Epic.
- Worst Healthcare IT Vendor or Consulting Firm in 2018: Allscripts.
- HIS Industry Figure of the
4. 2018 low end vendors 4-6
This document summarizes and analyzes the top 10 healthcare IT vendors based on 2017 annual revenue. It discusses the estimated $300M or less annual revenue of the last four vendors - CPSI, Harris Healthcare, Medhost, and Cantata. For each, it provides a brief history, product lines, client base, and future prospects. It concludes that the biggest news this year was McKesson and Siemens no longer being in the top 10, and Epic now having three product varieties for different hospital sizes.
3. 2018 mid range vendors 4-4
This document provides an overview and analysis of 3 mid-sized healthcare information system (HIS) vendors: athenahealth, eClinicalWorks, and Meditech. It discusses their annual revenues, product lines, client bases by hospital size, recent acquisitions and developments, and future prospects. Athenahealth has over $1 billion in annual revenue and offers both physician practice and hospital information systems. eClinicalWorks generates $490 million annually from its electronic health records for small physician practices but faced legal issues in 2017. Meditech has a long history and three distinct HIS products serving over 1,000 hospitals, and its prospects are positive with a new physician system and cloud offerings.
2. 2018 macro vendors 3 30
Cerner maintained the #1 spot for the fourth year in a row with over $5 billion in annual revenue. Their growth was driven by large government contracts like the $8 billion DoD deal and a $5 billion contract with the VA. Epic remained in second place with 9% revenue growth to $2.7 billion, and will likely gain clients switching from Siemens and Allscripts. Allscripts acquired McKesson's EIS business for $185 million, giving them new HIS products like Paragon to expand in the small hospital market as their physician practice business provides the majority of their $1.8 billion in revenue.
1. 2018 top his vendors 3 26
This document summarizes the top 10 healthcare IT vendors based on annual revenue. Cerner surged to the lead with over $5 billion in revenue in 2017 thanks to large contracts. eCW edged ahead of Meditech for the #5 spot. McKesson is no longer in the top 10 after selling their EIS division to Allscripts. Cantata, formerly of NTT Data, is a new addition to the top 10. The rankings 20 years ago are also provided for comparison - none of today's top 5 vendors were on the list at that time. Future episodes will provide more details on vendor performance in the large, mid-size, and small hospital market segments.
1. 2018 top his vendors 3 25
This document summarizes the top 10 healthcare IT vendors in 2018 based on annual revenue. Cerner surged to the top spot with over $5 billion in revenue thanks to large contracts. eCW edged ahead of Meditech for the #5 spot. McKesson is no longer in the top 10 after selling their EIS division to Allscripts. Cantata, formerly of NTT Data, is a new addition to the top 10. The rankings and vendors have changed significantly over the past 20 years. In upcoming episodes, each vendor's performance will be analyzed based on the hospital size segments they target.
1. 2018 top his vendors 3 23
This document summarizes the top 10 healthcare IT vendors based on annual revenue. Cerner surged to the lead with over $5 billion in revenue in 2017 thanks to large contracts. eCW edged ahead of Meditech for the #5 spot. McKesson is no longer in the top 10 after selling their EIS division to Allscripts. Cantata, formerly of NTT Data, is a new addition to the top 10. The rankings 20 years ago are also provided for comparison - none of today's top 5 vendors were on the list at that time. Future episodes will provide more details on vendor performance in different market segments.
HISsies 2018
This document summarizes the winners of the 11th Annual HISsies Awards, which honors the best and worst of healthcare IT as voted by readers of HIStalk. Key award categories and winners included Smartest Vendor Action Taken (Cerner convinces VA to choose its system without bidding), Stupidest Vendor Action Taken (EClinicalWorks accused of falsifying EMR certification data), Best Healthcare IT Vendor (Epic), and Most Effective Healthcare IT Figure (John Halamka of BIDMC). The awards recognize significant people, organizations, technologies and events in the healthcare IT industry each year.
3. march 1988
This document summarizes articles from a 1988 healthcare computing magazine, highlighting how hospital information systems have changed over the past 30 years. It notes that in the late 1970s and early 1980s, hospitals switched from shared systems to in-house systems but were beginning to return to shared systems for improved support. Today, leading vendors like Cerner, Epic and Meditech predominantly offer remote hosting from large data centers, similar to the old shared systems. The document also discusses the evolution of healthcare consulting firms and provides advice on selecting consultants that is still relevant today.
2. february 1988
This document summarizes and discusses news articles from the February 1988 issue of Computers in Healthcare magazine. It describes an advertisement from Phillips promoting their PACS technology from 30 years ago. The lead story featured Professional Healthcare Systems (PHS), an HIS vendor spun off from a large hospital chain. PHS was later acquired by several different companies over the years. Another article discusses three companies pioneering bedside terminal systems in the 1980s. The document analyzes the longevity and acquisitions of various healthcare IT vendors mentioned in the magazine from 30 years ago compared to today's leading companies.
1. jan 1988
This document provides a summary of news and events from the healthcare IT industry in January 1988, as reported in two industry publications. It describes the formation of SMS's turnkey division to offer in-house systems in response to competitors. A pioneering hospital is highlighted for being an early adopter of barcoding for medication verification. A LIS vendor offers an unprecedented uptime guarantee. The name changes of two vendors, AIC and HMS, are noted. Several early healthcare IT companies and their original names/acronyms are identified.
5. december 1987
This document summarizes news from the healthcare IT industry in December 1987:
- Kodak was a major vendor of photographic film but struggled after digital cameras were introduced. A device from Kodak allowed displaying a PC screen on an overhead projector.
- Sentry Data was a major player in the 1980s with their Tandem "non-stop" healthcare IT system. A modern startup reused the name "Sentry."
- In 1987, CEOs of four leading lab vendors made predictions about 1992 - two predictions were premature but others proved accurate about adoption of EHRs and integrated healthcare IT systems.
- The document provides other insights into the early healthcare IT industry including vendors like Medite
4. november 1987
This document summarizes healthcare IT news from November 1987 and discusses how the industry has changed. It provides ads and articles from that time period about leading vendors like Cerner, Sunquest, and NCR. It also discusses the evolution of technologies like mainframes, minicomputers, microcomputers, and today's cloud-based systems. Additionally, it accurately predicts that the number of hospitals and beds in the US would decrease by 2000. The document highlights how healthcare IT has progressed over the last 30 years.
3. october 1987
The document summarizes news from the healthcare IT industry from October 1987. It discusses how leading EMR vendor TDS withdrew from bidding on the DoD's CHCS contract due to issues with requirements. Many major vendors at the time bid on the large DoD project, though McDonnell Douglas subsidiary McAuto ultimately lost to consulting firm SAIC. The document also describes the founding of the HL7 standard to help address the problem of building interfaces between different clinical systems. Advertisements from the time show how few vendors from 30 years ago are still in business today under the same name.
2 september 1987
This document summarizes healthcare IT news and events from September 1987:
- It highlights an editorial from Bill Childs questioning IBM's dominance of the hardware market.
- It profiles Scott Holbrook, who had an impressive career moving between major companies like IBM, McAuto, and IHC.
- The major healthcare IT conferences at the time were ECHO and the AHA annual convention, while HIMSS was still relatively small.
- It reflects on vendors advertising in 1987, noting that only Sunquest still exists under the same name today.
- A graph shows the longevity of today's major EHR vendors like Meditech, Epic, CPSI, and Cerner, who have been in business for
109. cerner, part 6
This document discusses the history of the healthcare IT company Cerner, including:
- Cerner has had consistent leadership, with Neal Paterson serving as CEO for the company's entire 34-year history.
- Trace Devanny served as Cerner's President from 1999-2010 after joining as a sales representative and rising through the ranks.
- In 2013, Zane Burke was promoted from COO to become Cerner's third President.
- Cerner has experienced tremendous growth over 34 years, with annual revenue increasing and over 12,000 employees worldwide.
108. cerner, part 5
This document provides an overview of Cerner's history from its beginnings in 1979 developing lab information systems to its current position as a leading provider of healthcare IT systems. It discusses Cerner's development of its Health Network Architecture (HNA) in the 1990s which expanded its offerings beyond labs into a full hospital information system. Key acquisitions and partnerships that helped grow Cerner's product portfolio are also summarized. The document concludes by teasing the story of McKesson's history which will be covered in the next episode.
107. cerner, part 4
Cerner was selected by a large Pennsylvania healthcare system for their new laboratory information system (LIS) after a thorough selection process. The selection team evaluated vendors through scored demonstrations, user documentation reviews, phone reference calls to existing clients, and unaccompanied site visits. Cerner scored highest across all evaluation steps, excelling in user-friendliness, documentation quality, post-implementation support, and system functionality witnessed at client sites. As a result of this selection process, Cerner rose to the top of the LIS market and was chosen by the healthcare system over competitors like Sunquest and ALS.
1. august 1987
This document summarizes news from the healthcare IT industry in August 1987 and discusses lessons that can be learned. It provides details on leading vendors of the time, including that only one vendor from 1987 still exists today under the same name and leadership. It also discusses people in the industry at that time, including earnings for various roles, and looks at advertisements from industry publications in 1987 for vendors and products, many of which are still in use today. The document concludes by previewing what will be covered from industry publications in September 1987.
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116. mc k part 5 hbo
- 1. H.I.S.-tory by Vince Ciotti Episode #116: McKesson Part 5 = IBAX © 2013 by H.I.S. Professionals, LLC, all rights reserved.
- 2. Recapitulation • My many mergers of mighty MedPro might mentor migraines (mmmm…), so here’s a recap of HBO’s evolution up to 1990: • Next, we cover two mega-mergers in the 1990s that vaultedHBOC into the top of the HIS market, ahead of former #1 SMS.
- 3. HBOC’s Product Line in Late 80s • These ads nicely illustrate how HBOC had merged the MDC, Amherst & Medicus systems into their diverse product line by the end of the 1980s.
- 4. Mega-Merger Maven • Walt Huff retired in 1989, and in his own words: “Holcomb Green became Chairman, Darrell Young president of HBO (minicomputer division), Robert Murrie President of MEDILEX (IBM/FM), & Larry Gerdes, President of the Equipment Maintenance Subsidiary).” • In 1991, Holcomb Green appointed a single president over all 3 subsidiaries, who eventually became chairman: Charlie McCall. • McCall was no stranger to IT : from 1985 to 1991, he was CEO of CompuServe. He engineered two deals for HBOC in the mid-90s that put them in first place in the HIS industry, ahead of SMS, former #1 in annual revenue. The first acquisition in 1994:
- 5. IBAX (IBM and Baxter) • The roots of IBAX are also a complicated web of mergers, so hold onto your track-pad as we cover them briefly here (you can view their full episodes on our web site hispros.com): – 18 = DCC (Dynamic Control) – 26 & 27 = JS Data Plus one I did not do a episode on: Stonybrook Systems, an IBM mainframe vendor out of Long Island, who’s CEO Frank Russo became IBAX’sCEO. • HBOC’s “official” story on the merger is interesting reading:
- 6. “I Hoid It Through The Grapevine…” • If you put these slides on fullscreen display (and you’re not trying reading this on a tiny iPhone…), Jeff Goodman’s inside tale is echoed here in a great interview by Bill Childs of IBAX’sCEO Frank Russo about acquisition rumors in 1989. • The take-way for today if you’re embarking on a system search? – Even CEOs don’t know when their Boards are being approached for takeovers, – So look at the product a lot more than the company!
- 7. Sibling Rivalry? • This acquisition was somewhat challenging in that IBAX was a major competitor to HBOC in all three hospital market segments: – Large (≈300 beds and up) – which usually considered IBM mainframe systems like IBAX’sOmega (IBM PCS/ADS-based mainframe system, later re-named Series 5000 when Baxter became IBAX) vs. HBOC’s Medipac (from Medicus/Mediflex). – Medium (100 to 300 beds) – which often compared HBOC’s ClinStar and Star Financials (by now running on DG minis) to IBAX’sDelta (DCC on AS/400s, later re-named Series 3000). – Small (under 100 beds) – which generally included in their searches IBAX’sAlpha (JS Data, later re-named Series 2000) vs. HBOC’s Galaxy (still on 4φ minis, eventually sunset…). • So what would you do if you were HBOC and you inherited these three competing systems and had to pick one to answer an RFP?
- 8. Banana FannaFo Farley… • Why, re-name them of course! The first step in any acquisition is to “integrate” all the ads, brochures, PowerPoints and proposals with new names for the many products on diverse platforms, and HBOC followed this marketing rule assiduously as follows: – Series 5000 joined MediPac and CliniPac, and even the NSA’s 2013 sleuths might not figure out just which COBOL/VSAM/MVS code came from where over subsequent releases… – Series 4000 (DCC) and 3000 (JS Data) were similarly merged into a single systems called “Series,” probably containing more of DCC’s RPG code than JS Data’s, although again who knows? • Series still run in hundreds of hospitals today, although mostly its financial apps as its clinical system can hardly be “meaningfully used.” MediPac &CliniPac eventually became HealthQuest, which
- 9. 1991 Paragon Ad? • Anyone who follows McKesson today should get a good laugh at this ad from 1991 that illustrates how marketers are sometimes many years ahead of the programmers in development… • It seems HBOC tried the name “Paragon” for their “MCA” EIS and Cost Accounting systems, which they had acquired from Amherst &Medicus. The name never stuck, but was “re-cycled” in the late 90s when today’s Paragon HIS system was born…
- 10. Next Week… • We’ll cover the second of Charlie’s mega-merges that put HBOC at the top of the HIS industry, this one involving one of smallest HIS vendors that targeted mainly small hospitals under 100 beds, and two of the largest firms in corporate America who both tried and eventually failed to be as big in HIS as they were in other fields. In visual symbols & algebraic notation, the story goes like this: + but< > , ! • Stay tuned for the gory details, and if you were an insider within these firms during the halcyon 1990s, gimmee a call or email: - 505/466-4958 vciotti@hispros.com