SSI LAUNCHES NEW MANAGED CARE DIVISION
Clearwater, Fla.-based The SSI Group, Inc., announced that it has formed a division to market its managed care information systems. A major portion of business for the division will be provided courtesy of SSI’s 1997 acquisition of CareWare Systems, Inc., and the CareWare Case Management system. Allan Machesney, an SSI vice president, will run the division. The company also said it is completing its release of two new client/server managed care products.
PRACTICE MANAGEMENT COMPANY FACES LAWSUITS
Shareholders of Physician Computer Network, Inc. (Nasdaq: PCNI), Morris Plains, N.J. are seeking retribution for a radical decline in share value with claims that the company used "improper accounting methods, thereby falsely inflating the company’s revenues and earnings," according to a press release issued by law firm Schiffrin, Craig & Barroway in Bala Cynwyd, Pa. The lawsuit was filed on behalf of shareholders who purchased PCNI stock from April 29, 1997 through March 2, 1998. Several other firms have filed similar class action lawsuits against the company on behalf of shareholders. The lawsuits contend that certain PCNI officials made false statements about the company’s secure financial condition to Wall Street analysts and even reported fictitious profits of $10 million in 1997. PCNI shares fell more than 70 percent on March 2, after the company announced that it had reported inflated revenues and profits in 1997, off from a high of $7 7/8 in July.
Woes for the software company mounted on April 2 when trading of PCNI stock was halted on the Nasdaq exchange after the company’s auditors, KPMG Peat Marwick, withdrew its report on PCNI’s 1996 financial statements, claiming those statements were not reliable. Also on April 2, PCNI announced it would report losses of $77 to $81 million--a restatement of its initial loss estimates of $27 to $31 million reported on March 2. The company has since announced plans to restructure its debt, including securing $11 million in cash from a group headed by PCNI chairman Jeffry Picower. PCNI also laid-off 20 percent of its workforce (140 employees) to cut expenses.
KEANE BUYS PRACTICE MANAGEMENT SYSTEM
Keane, Inc., Boston, announced it has purchased the X10 Medical Practice Management product from Salt Lake City-based X10sion. Keane will integrate the practice management system for large, multi-specialty medical practices into its Healthcare Information System.
ADVANCED HEALTH MAKES NEW INVESTMENT
Advanced Health Corp., Tarrytown, N.Y., became a minority owner of Patient Care Dynamics with a $5 million investment in the Mason, Ohio-based company. Patient Care Dynamics develops the Practice Support Workstation and Patient Clinical Assistant physician office systems. Rob Alger, president of Advanced Health Corp.’s subsidiary Advanced Health Technologies, was appointed to Patient Care Dynamic’s board of directors.
CERNER BUYS DRUG DATABASE COMPANY
Cerner Corp., Kansas City, Mo., acquired drug information database company Multum Information Services Inc., Denver. Cerner will incorporate Multum’s knowledgebase components, including the MediSource information system into its Health Network Architecture Millennium software. Terms of the deal were not disclosed.
INFOCURE ACQUIRES MEDICAL SOFTWARE INTEGRATORS
Practice management software developer, InfoCure Corp., Atlanta, announced it has purchased Medical Software Integrators, Inc. of Marietta, Ga. InfoCure will offer Medical Software Integrators’ Office 2000 product suite, including the Micro*Star Anesthesia Practice Management System with its own line of practice management software.