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March 2002
American Pharmaceutical Partners fires back at New York Times charges
American Pharmaceutical Partners, the Los Angeles-based generic drug manufacturer with close ties to Premier Inc., reacted strongly today to an article that appeared in yesterday's New York Times ("When a Buyer for Hospitals Has a Stake in Drugs it Buys") that charged the company with a range of business improprieties surrounding its relationship with the big GPO. Branding the Times piece "irresponsible and unbalanced journalism," In its response, contained in a press release sent out this morning, APP responded by saying that it has contracts with not only Premier, but with "virtually all GPOs in the U.S." Premier was involved in early funding for the then-startup pharmaceutical producer. The company also argued that the FDA, rather than forcing it to withdraw gentamicin, a generic medication, actually "applauded" the company for its "responsiveness in promptly and voluntarily withdrawing gentamicin from the market in 1998 due to issues related to raw material from one supplier, resulting in a collaborative effort with FDA to bring this medically necessary product back to market expeditiously." APP said that its efforts to cooperate with Times reporters assigned to the story were ignored.
Owens signs on with GHX
Owens & Minor Inc., the Richmond, VA-based med-surg products distributor, has begun full-scale transactions with customers through the Global Healthcare Exchange. As an integrated member of the GHX trading exchange, Owens & Minor can receive and fulfill orders for multiple hospitals and healthcare facilities with a single Internet connection, thereby expanding the ways in which the distributor can more efficiently serve its customers. Currently, nearly 700 hospitals have joined GHX, representing 71 integrated delivery networks. Owens & Minor conducted its first live business transactions through GHX last month, processing and fulfilling orders for Robert Wood Johnson University Hospital in New Jersey.
AmeriNet gets on board with standards group
AmeriNet, the St. Louis-based GPO, has announced its alliance with the Coalition for Healthcare standards, joining CHeS as a core member and a member of the board of directors. Formed in June 2000, CHeS efforts are geared toward creating industry-wide e-commerce standards and accelerating the acceptance of those standards. Also allied with CHeS, as core members in the effort to develop uniform standards for Internet supply chain transactions, are MedCenterDirect, Medibuy and Neoforma.
Encore Medical wins DVA orthopedic soft goods contract
The National Acquisition Center has signed Encore Medical Corp. to a five-year agreement covering its entire line of orthopedic soft goods. The products will be sold to the Department of Veterans Affairs' nationwide system of hospitals, clinics and other operations. The Acquisition Center, which is based in Hines, IL, handles the largest combined contracting activity within the DVA and is responsible for contract awards exceeding $1.5 billion annually. Encore, based in Austin, TX, designs, manufactures and markets orthopedic total joint, trauma and spinal implants, as well as orthopedic soft goods.
Times fires second salvo at Premier
Three weeks after publishing a front-page article that slammed its business practices, Premier Inc. finds itself in the media crosshairs once again. In the second installment in a New York Times series detailing the work of group purchasing organizations, Premier Inc. was hit with charges that its investments and influence propped up a fledgling drug company, some of whose products were suspect. Moreover, the Times article alleged that two Premier executives were personally enriched with lucrative stock options from the company, American Pharmaceutical Partners, a generic drug producer.
Next month, the Senate antitrust subcommittee will meet and consider Premier's ties to American Pharmaceutical as part of a long-anticipated look into hospital group purchasing. If the attitude toward GPOs in general and toward Premier specifically can be judged by the statements of Sen. Herb Kohl, (D-WI), chairman of the antitrust subcommittee, GPOs might be in for a rough ride in the April hearings. In today's Times article, Kohl was quoted as saying the allegations against Premier were "scandalous."
The April issue of Healthcare Purchasing News, due out next week, follows up on the March 4 Times piece with reaction from group purchasing executives and others.
VHA Southwest partners with Living Will Registry
The U.S. Living Will Registry, Westfield, NJ, and VHA Southwest, Dallas, have formed a partnership that offers member hospitals discounted rates to use the registry's services. The registry electronically stores advance directives and makes them available to hospitals and other providers by telephone or Internet through an automated system. While many people have prepared these living will documents, studies show that 35 percent of advance directives are not available when needed.
Five-year forecast: Oncology beds, patient mix to grow
Oncology diagnoses are expected to increase as much as 9 percent between 2001 and 2006, forcing hospitals to closely reevaluate and reallocate the proper mix of beds, care and service they provide their communities. These research findings, from Solucient, Evanston, IL, are based on analyses of public and proprietary healthcare utilization and claims data. The findings reflect demographics and an aging U.S. population, according to a company spokesperson.
According to Solucient's new Health Profiles Cancer data, hospitals can expect national, five-year growth rates exceeding nine percent in these cancer diagnoses:
A separate analysis of Solucient's new Inpatient Forecasting Data forecasts a parallel growth in the number of expected hospital stays for malignant tumors. The data show the highest rate of growth - exceeding ten percent - for these types of malignancies:
Abbott to partner in CJD diagnostic test development
Abbott Laboratories, Abbott Park, IL, and the University of Zurich in Switzerland, have agreed to develop in vitro diagnostic tests for abnormal prion proteins associated with bovine spongiform encephalopathy (BSE) or "mad cow" disease in cattle, Abbott said yesterday. The company and university will also work to develop a test for the human equivalent of BSE, new variant Creutzfeldt-Jakob Disease (CJD), which is a fatal disease with currently no known treatment or pre-mortem diagnostic test.
Premier signs Tyco to contracts worth $300 million
Premier Purchasing Partners and Tyco Healthcare, Mansfield, MA, have reached agreement on a new three-year sole source contract covering wound care products, surgical dressings and bandages. The contract, valued at an estimated $200 million, takes effect April 1. Brands in this agreement include Curity gauze, Kerlix sponges, Kerlix A.M.D. bandage rolls and Telfa non-adherent dressings. Premier also awarded Tyco's Kendall Healthcare unit an agreement for incontinence care products such as adult briefs, disposable undergarments and underpads that took effect Mar. 1. That contract is valued at $100 million over a three-year period.
Instrumentarium to acquire Spacelabs
Finnish medical equipment group Instrumentarium has agreed to buy U.S. Spacelabs for $140 million in an effort expected to boost its presence in the U.S. critical care monitoring market. Redmond, WA-based Spacelabs, which had 2001 sales of $242 million, has of staff of 1200. The acquisition is expected to close by July. Instrumentarium manufactures anesthesia machines and other critical care equipment for hospitals such as ventilators, along with the accompanying software. The critical sector is expected to see steady growth in coming years on rising demand as baby boomers retire.
CDC: Provider preparation key to thwarting TB
State and local health agencies should have working outbreak response plans in effect to help maintain and bolster capacity for controlling tuberculosis rates in low-incidence areas, according to a report from the Centers for Disease Control and Prevention. CDC said a recent outbreak of tuberculosis on the Fort Belknap Indian Reservation in Montana demonstrates a need for better surveillance. The agency said the five cases there show that healthcare providers should be proficient in the identification and management of persons with TB, adding that TB case rates can start to rise when the public health infrastructure and resources for TB control are reduced or neglected.
Yesterday marked the 20th annual World TB Day, which recognizes the efforts of nations involved eliminating tuberculosis. TB is the second leading infectious cause of death among adults worldwide, killing 2 million people each year. U.S. cases declined for the ninth straight year in 2001 to 15,991. For more, visit
www.cdc.gov/mmwr.
Nurse chic
It isn't often that The New Yorker magazine, famed for decades for occasionally interminable, but consistently literate commentary about art, politics and the world at large, reaches into the somewhat esoteric domain of hospital supplies for a story. Though the piece that appears in the March 18 issue by John Seabrook may not be the most compelling or controversial in the magazine's illustrious history, a visit to the cartooned pages 122-127 will transport readers into the captivating realm of New York fashion goes hospital. What we have here is a narrative of how Manhattan fashion designer Yeohlee Teng was hired by Valley Hospital, a 451-bed facility in Ridgewood, NJ, to rework one of the staples of hospitals everywhere, namely nurse wear. It's also a good thing that Yeohlee took the assignment: It was turned down by the likes of Ralph, Calvin and Liz.
The often-humorous piece entertains the reader with a behind-the-scenes look at one hospital's effort to bring trend to the halls of healing, with allusions to a previously undiscovered means of attracting and keeping nurses during a time of shortage. And, as an added bonus, there's an engaging history of hospital wear thrown in for good measure.
Bush moves to drop privacy rules
Late yesterday, the Bush administration proposed dropping a federal requirement designed during the Clinton administration in December 2000 to protect the privacy of medical records. According to a report in The New York Times, this Bush proposal, which is generally favored by the healthcare industry but looked at with caution if not dismay by consumer advocates, said doctors and hospitals should not have to obtain consent from patients before using or disclosing medical information for the purpose of treatment or reimbursement.
The proposal is to be published in the Federal Register next week, with 30 days allowed for public comment. The government will consider the comments and then issue a final rule, with the force of law. Secretary of health and human services Tommy Thompson said he wanted to remove the consent requirements because he believed they could delay care.
Premier awards supply chain software and food services contracts
Premier Inc. has awarded a contract covering collaborative supply chain solutions to Verticalnet, Malvern, PA. Verticalnet software is used in supporting contract-price activation and in managing contract sourcing and administrative processes. The contract licenses the full suite of Verticalnet applications including Strategic Sourcing and Collaborative Planning. Premier also awarded an expanded five-year contract that makes Philadelphia-based ARAMARK a preferred food and facility services vendor to all of Premier's 1,600 member sites through ARAMARK's ServiceMaster Facility Services. Under an earlier agreement, ARAMARK already had contracts worth an estimated $70 million in annual sales with 125 of Premier's members.
Transplant death probe widens; Pickets protest hospital staff cuts
New York's Mount Sinai Hospital's was recently fined $48,000 by state health officials for what it called inadequate post surgical care after the death on Jan. 13 of a healthy 57-year old liver donor. Now, the investigation into liver surgery procedures at the institution is widening its focus to 13 cases in which transplant recipients died and three others in which people complained of inadequate care. The hospital had until yesterday to report to state officials its plan to correct problems. The Health Department also ordered Mount Sinai and four other hospitals to reassess the safety of liver transplant procedures.
While that was taking place, picketers representing some of Mount Sinai technical, clerical, service and maintenance workers along with union representatives marched outside the big New York City hospital Wednesday to protest announced staff reductions. In a statement, the hospital responded that staff cuts had "minimal impact on bedside care."
Texas Blues ink diabetes products contract
Blue Cross Blue Shield of Texas has signed a new contract with SureCare to provide diabetes products and services to its members. The durable medical equipment agreement includes both the Blue Choice Managed Care Plan and HMO Blue Texas Managed Care Plan.
Premier launches website to showcase Award for Quality honorees
Premier is launching a public Web gallery designed to showcase the hospitals/health systems that were awarded the 2001 Premier Award for Quality. These projects were reviewed by an independent, expert panel of judges from organizations such as The Leapfrog Group, Dartmouth Hitchcock Medical Center, and the IHI. The Award for Quality is an annual recognition of hospitals and health systems that demonstrated significant advances in healthcare quality and safety. It is open to Premier members only.
The 2001 Premier Award for Quality winners were:
Site visitors (www.premierinc.com/qualityaward) can download the applications the winning hospitals/health systems submitted to the Institute for Healthcare Improvement (IHI) in September 2001.
Mount Sinai to slash 450 jobs in turn-around effort
New York's Mount Sinai Medical Center says it will slash 450 jobs, effective immediately, to save about $25 million annually. The layoffs, recommended by the Hunter Group, a hospital turnaround specialist, are expected to have minimal impact on direct patient care but will affect all levels of employees, officials said. The Hunter Group may urge further layoffs next month when it is scheduled to issue more recommendations. Mount Sinai employs approximately 11,000 full time people at the 986-bed hospital and medical school. The hospital already eliminated some 130 positions from its full-time workforce of 7,500 since cost-cutting measures began in 2001. Mount Sinai lost $26.4 million on $979 million in operating revenue in 2000, raising concern at credit ratings agencies and dragging down the credit rating for Mount Sinai NYU Health as a whole.
Wound care and infection control conference slated
D&D Medical Sales, St. Augustine, FL is sponsoring a one-day conference "Meeting the Challenge of Wound Healing and Infection Control," on April 11 at the Radisson Plaza Hotel in Orlando, FL. Organizers say the conference will enhance the clinical knowledge of the wound care specialist and provide basic cleaning and disinfecting protocol, including OSHA policies. CEUs for nurses are offered and certificates of attendance are provided for all that attend. For more information please call D&D Medical at 800-472-1203 or visit their website at ddmedicalsales.net.
Ortho acquires blood bank test manufacturer
Ortho-Clinical Diagnostics Inc, a Johnson & Johnson company based in Raritan, NJ, has acquired Micro Typing Systems Inc., Pompano Beach, FL, a manufacturer of blood bank serology tests for the North American market. MTS, which manufactures a line of reagents and supplies distributed instruments known as the ID-Micro Typing System, has been made a wholly owned subsidiary of Ortho-Clinical. ID-MTS is used in hospitals and donor centers to help to ensure safe and effective blood transfusions.
Planar to acquire diagnostic imaging concern
Planar Systems Inc., Beaverton, OR, has signed an agreement to acquire DOME Imaging Systems Inc., Waltham, MA. DOME's display systems for diagnostic imaging will augment Planar's line of medical-grade display and workstation systems. The market for digital medical imaging systems includes large diagnostic equipment such as CT scanners and MRI systems, computer-aided diagnostic tools, and picture archive and communication systems (PACS). The worldwide market segment for flat-panel monitors and controller boards used in digital medical imaging, currently estimated at around $130 million, is expected to soar to upwards of $280 million in 2003.
Dialysis deaths prompt Baxter to trim execs' bonuses
Baxter International and its executives met all 2001 performance goals, which should have qualified executives for "100 percent or more of their target bonus." But the Deerfield, IL-based manufacturer acknowledged recently that its dialysis filters may have played a role in the deaths of 53 patients in seven countries including the U.S., and that has led Baxter's compensation committee to cap the bonuses at 80 percent, according to a company document. A Baxter subsidiary reached an agreement in Spain offering undisclosed compensation to the families of ten patients who died following hemodialysis treatments that used the Baxter-made filters.
While it's decidedly difficult for most people in the industry to muster much sympathy for the individuals involved, Baxter's compensation committee is tying a key provision in the bonus plans to corporate accountability and has adjusted actual bonuses awarded for 2001 ranging from 50 percent to 80 percent of the individual officers' target bonus. Baxter CEO Harry Kraemer, for instance, was handed a 2001 bonus of $528,000, sizeable indeed, but a check that represented 60 percent of his target bonus amount, the preliminary proxy said. That's less than half the $1.3 million bonus Kraemer received in 2000; his salary was unchanged at $880,000.
Premier tacks on surgical wrappers to Medline deal
Premier Inc. has extended its textile contract with Medline Industries Inc., Mundelein, IL to include reusable surgical wrappers. Medline is contracting with a minority and woman-owned manufacturer, Chicago-based Wright Fit Uniforms, to supply the products covered under the Premier pact. Both Medline and Premier have enacted supplier diversity initiatives to encourage and support quality minority vendors. Medline's textile contract with Premier runs through 2003. The one-year addition to the agreement took effect March 1.
Georgia hospital seeks robotic surgery system
Atlanta's Saint Joseph's Hospital has asked the state for approval to buy a $1 million robotic surgery system that could be used for open-heart surgery. If the deal proceeds, the hospital would become one of a dozen sites nationwide to participate in a clinical trial of the daVinci Surgical System manufactured by Intuitive Surgical Inc., Sunnyvale, CA. The system has received FDA clearance for use in several types of minimally invasive surgery, including surgical assistance and general laparoscopic surgery. In January, the daVinci system was used in conjunction with the first closed-chest robotic heart bypass surgery, leading to a clinical study that Saint Joseph's would join. Last year, Atlanta Medical Center became one of just six U.S. hospitals to test a competing system called the Zeus Robotic Surgical System made by Computer Motion Inc., Goleta, CA.
AHRQ beefs up online stats
The Agency for Healthcare Research and Quality announced it has enhanced its online hospital statistics tool, HCUPnet. AHRQ has upgraded the tool, which can be found at Available at www.ahrq.gov/data/hcup/hcupnet.htm, by adding 1998 and 1999 data for the nation, by regions of the country, and by selected states. The tool also includes for the first time the Kids' Inpatient Database, a hospital administrative data set specifically designed for analyzing the use of hospital services by newborns, children and adolescents. HCUPnet allows users to identify, track, analyze and compare statistics on inpatient care. For example, users can examine the leading reasons for admission, the most expensive surgical procedures, and the trend in the number of coronary artery bypass graft procedures over the past several years. The site also has begun featuring instant results for commonly requested statistics, as well as quick access to aggregate charges for diagnoses and procedures.
Spike reported in supply costs for hematology/oncology practices
A dramatic increase in the cost of med-surg supplies is cutting into profits for hematology/oncology practices, according to a Cost Survey for Hematology/Oncology sponsored by the Medical Group Management Association. The supply cost rise for that segment is on top of gross fee-for-service collection percentages that have steadily declined since the 1990s. The survey reported late last week that the average cost of med-surg supplies has jumped more than $486,000, to $830,833 in 2000 from $344,105 in 1997.
The 2001 surveys based on 2000 data provide comparative measures in medical practice charges, revenue, expenses, earnings and staffing that can be useful in assessing a medical group's financial and operational performance.
Eisenberg dies, led Agency for Healthcare Research and Quality
John M. Eisenberg, M.D., M.B.A., director of the Agency for Healthcare Research and Quality died March 10 at his home in Potomac, MD, after a yearlong illness caused by a brain tumor. He was 56. Dr. Eisenberg was the director of the AHRQ, an arm of the U.S. Department of Health and Human Services, from 1997 to 2002. AHRQ is the lead federal agency charged with supporting research designed to improve the quality of healthcare, reduce cost, improve patient safety, address medical errors and broaden access to essential services.
A highly respected national healthcare leader, Dr. Eisenberg's career was dedicated to ensuring that healthcare is based on a strong foundation of research and that the services provided reflect the needs and perspectives of patients. As director of AHRQ, he spearheaded the efforts of the federal government to reduce medical errors and improve patient safety in American healthcare.
Abbott buys British cardiovascular stent unit for $234.5 million
Abbott Laboratories, Abbott Park, IL, announced that it has agreed to acquire the cardiovascular stent business of Biocompatibles International PLC for $234.5 million in cash. Abbott said the deal would strengthen its portfolio of products and expand its international presence in the vascular business for polymer-coated stents. The pharmaceutical and medical device manufacturer also will assume worldwide commercial rights for all potential drug-coated stent products in Biocompatibles' pipeline.
Abbott has been the exclusive U.S. distributor of the British company's BiodivYsio coated stents since 1999. The deal is to be completed in the second quarter.
Rural health could suffer after feds cut visas for foreign docs
The U.S. Department of Agriculture's recent decision to stop granting visas to foreign physicians could make it more difficult for some rural areas to provide an adequate number of doctors, rural health advocates say. The USDA's decision followed its review of agency-provided waivers that enable foreign physicians to legally work in the U.S. That review concluded that such waivers are ill-advised among increased security concerns since Sept. 11. The waivers have a "huge impact on a number of states, among them West Virginia, Kansas and Tennessee," said Alan Morgan, vice president of governmental affairs and policy at the Kansas City-based National Rural Health Association.
ECRI to hold safety certification sessions
The Center for Healthcare Environmental Management's
(CHEM) certification program covers everything from occupational health and safety and environmental regulatory compliance to best practices for reducing the risks of staff and patient injury and loss of property. The program is for professionals who provide environmental health, safety and security expertise in healthcare settings. Courses will be held May 6-10 in suburban Philadelphia; July 15-19 in Milwaukee; September 23-27 in Riverside, CA; February 24-28, 2003 in Cocoa Beach, FL; and May 5-9, 2003 in suburban Philadelphia.
For more information or to register, go to www.ecri.org, and click on Center for Healthcare Environmental Management under "Our Products and Services," e-mail to
chem@ecri.org, or call 610-825-6000, ext. 5326.
FDA urges recall of nonsterile gynecology equipment
The federal government sent doctors an urgent warning last Thursday that a manufacturer may not have sterilized numerous devices used in births, infertility treatments and other gynecology procedures - posing a risk of death. The FDA said the potentially dangerous devices, made by A&A Medical, Alpharetta, GA, were sold nationwide and in Canada, Egypt, Lebanon and Italy.
The FDA said it was urging A&A to voluntarily recall the devices. Former company employees told the FDA that sterile and nonsterile devices had been shipped together in the same batches and agency inspectors who visited the company facilities found evidence supporting those allegations. Nonsterile products used in gynecology products could cause infections that lead to infertility, miscarriage and even death, the FDA warned, saying the problem could date as far as back as 1999.
An agency spokesperson said he knew of no reports of injuries linked to the devices, but noted that gynecologic infections are common and may not raise a doctor's suspicions. Among the potentially dangerous devices are uterine dilators, endometrial sampling sets, fetal blood samplers, accessories used in minimally invasive gynecologic surgery, harvesting pumps used for in vitro fertilization, and bone marrow needles, the FDA said. For information, contact the FDA at 1 800-638-2041, or A&A at 800-424-1234.
Study says surgeon shortage looms
The practice of general surgery could wind up on the critical list if today's medical students continue to choose a comfortable lifestyle over grueling, unpredictable work hours. The number of applicants to residency programs in general surgery has dropped 30 percent in the past nine years, according to studies in the March issue of the journal Archives of Surgery. The trend began in the 1980s, but last year was the first since then that the number of general surgery positions offered to U.S. medical school graduates exceeded the number of students interested, the studies say.
Medical students are more likely to be married and female than they were a generation ago. And unlike large numbers of their predecessors, many actually want a life outside medicine, according to the studies. More students are entering specialties that require shorter training periods, such as radiology, anesthesiology and emergency medicine. Becoming a general surgeon takes five years of residency training, two years more than fields such as radiology and dermatology. That is in addition to four years each of medical school and undergraduate education.
Flawed tissue processing suspected in bacterial infection deaths
Four months after a young Minnesota man died from routine knee surgery, officials from the Centers for Disease Prevention and Control in Atlanta have turned up 25 more cases of serious bacterial infections in people who received similar operations over the past several years. The officials say a single tissue-processing company has been involved in 14 of the 26 cases, including the fatal one. The agency also said the tissue that fatally infected a Minnesotan who was having kneecap repair surgery had not been refrigerated until 19 hours after the donor's death, by which time lethal bacteria from his intestines might have spilled into his body. The disease control centers' report, which offered recommendations for improving tissue processing procedures, does not name the company, but it has been widely identified as CryoLife Inc., Kennesaw, GA. Roy Vogeltanz, CryoLife's vice president for corporate communications, acknowledges that half the patients with serious infections had received implants from the company. But he says, "The C.D.C. doesn't know and we don't know that the infections were related to the implants."
Alliance Medical reprocessing its IPO
Saying that the FDA's extension of its own deadline for clearing several outstanding 510(k) submissions has harmed the conditions under which it can raise money in the public market, Alliance Medical has withdrawn the registration statement it filed with the Securities and Exchange Commission last August 23. Rick Ferreira, CEO of the Phoenix-based medical device reprocessor, said that although the FDA has returned 15 clearances out of the 20 the company has filed, "We feel that conditions for raising money from the public market will be better after FDA has acted on our remaining 510(k) submissions."
Ethicon launches website for breast biopsy information
Cincinnati-based Ethicon Endo-Surgery, a Johnson & Johnson company, has launched a website at www.breastbiopsy.com devoted to breast biopsy. The site is intended to provide women, their families and health professionals with information about suspicious mammograms, breast abnormalities and biopsy evaluations. The site contains information on minimally invasive and open surgical breast biopsies, as well as forums for posting messages or questions. In addition, visitors can view streaming video of an actual biopsy procedure and locate facilities in their area that perform the various biopsy procedures. The site also offers a breast care quiz, and Ethicon Endo will donate $1 to either the American Cancer Society or the Susan G. Komen Breast Cancer Foundation for each person who completes it.
ehomecare.com could soon close
E-Health Business reported yesterday that ehomecare.com, unsuccessful in an attempt to raise $6 million in funding, and will soon be forced to close its doors. Attempts to reach the company for comment were unsuccessful although the website was still active at press time. ehomecare.com bills itself as "the leading home care technology company that delivers Web-based and mobile applications for agency management, clinical, financial and knowledge-based services."
Broadlane signs pacts with Cordis and Zoll
San Francisco-based Broadlane Inc. and Cordis Corp., a Johnson & Johnson company, reached agreement on nine contracts covering a new generation of coronary and endovascular products to Broadlane's members. The products include coronary, endovascular and peripheral stents; PTA balloons, cardiology and endovascular guiding catheters; diagnostic guide wires, sheath introducers and interventional sheaths; and a number of other cardiology and endovascular core product brands from J&J's portfolio. The agreements took effect on Feb. 1.
Separately, Broadlane announced the signing of a deal with Zoll Medical, Burlington, MA, covering Zoll's lines of non-invasive cardiac resuscitation devices. That agreement takes effect Monday.
Tenet tops analysts' profit estimates
Hospital chain Tenet Healthcare Corp. on Monday raised expectations for earnings in its fiscal third quarter, helped in part by cost controls along with more frequent visits by older patients. The Santa Barbara, CA-based company said profit from operations for the quarter ended Feb. 28 would "comfortably" exceeded the average estimate of 81 cents a share of analysts surveyed by Thomson Financial/First Call. Tenet did not provide an exact estimate. In the year-ago period, Tenet earned 60 cents a share. It plans to release its final 3Q results on April 4. Tenet has been concentrating on more profitable services such as cardiology to attract patients and has reduced interest expense by repaying some debt. Admissions to hospitals owned more than a year rose about 2 percent, even though the U.S. flu season was the weakest in years, Tenet said. Tenet reiterated that it expected earnings from operations to grow at least 35 percent in fiscal 2002.
JCAHO's national campaign seeks to enlist patients for joint safety effort
Two of the nation's leading advocates of healthcare quality and safety have launched a campaign urging patients to take a role in preventing healthcare errors. Recognizing that physicians, healthcare executives, nurses and other healthcare workers are already working hard to address this ongoing problem, the program stresses that it is now time for patients themselves to become part of this effort.
Dubbed "Speak Up," the program sponsored by the Joint Commission on Accreditation of Healthcare Organizations or JCAHO, encourages patients to become active, involved and informed participants on the healthcare team. The suggested steps are based on research that JCAHO believes shows that patients who take part in decisions about their healthcare are more likely to have better outcomes. Such efforts to increase consumer awareness and involvement are supported by the Centers for Medicare and Medicaid Services. Accredited healthcare organizations will soon be receiving information about the Speak Up campaign and samples of the Speak Up campaign brochure and buttons.
Final settlement proposal submitted for Sulzer hip and knee implants
Sulzer Medica has formally submitted the final settlement proposal regarding hip and knee litigation in the U.S. All involved parties have agreed to and signed the final wording. Judge Kathleen O'Malley has given preliminary approval for this settlement proposal. The opt-out period will start on April 12 and run through May 14. The Final Fairness Hearing is still scheduled for May 6.
PhRMA launches bioterrorism information website
Pharmaceutical Research and Manufacturers of America
(PhRMA) has launched a
website designed to provide reliable information on preparedness to combat
bioterrorism in America. Homelandhealth.com offers updated information and news provided by government sources such as the Department of Health and Human Services to consumers, healthcare professionals, the media and government officials. The site includes information about anthrax, smallpox and other potential bioterrorism agents.
Visitors to the site can learn about symptoms of various diseases as well as diagnosis and treatment methods and can also find tips about what to do in emergency situations. Visit
www.phrma.org or www.Homelandhealth.com for more information.
Average physician generates $1.5 million a year for affiliated hospital, survey finds
A physician generates on average $1.54 million a year in inpatient and outpatient revenue for his or her affiliated hospital, according to a new survey conducted by Merritt, Hawkins & Associates, a Dallas-based physician search and consulting firm. The survey asked hospital chief financial officers to indicate how much revenue physicians in 20 specialties generated for their hospitals in the past year. Figures included inpatient and outpatient net revenue derived from physician patient referrals and associated patient treatment. Cardiovascular surgeons were the top revenue generators at more than $3 million a year, while pediatricians generate the least revenue at $690,104 a year. Other high revenue producers included neurosurgeons ($2.3 million), vascular surgeons ($2.2 million), and orthopedic surgeons ($1.8 million). Primary care physicians (defined as family practitioners, internal medicine practitioners, and pediatricians) generated an average $1.27 million. The survey will be posted soon at www.merritthawkins.com under "Compensation Surveys."
Manhattan hospital faces fine in death of liver donor
New York's Mount Sinai Hospital will be fined and subjected to other enforcement action by the state for its treatment of a 57-year-old patient who died on Jan. 13, three days after donating part of his liver to his brother, according to the state health department. At a Tuesday press conference, state health commissioner Antonia C. Novello said, "Unfortunately, our investigation has concluded that the patient did not receive appropriate care following surgery. I can only describe the patient's post-operative care as fragmented at best, and entrusted to individuals who although qualified were unable to provide the level of attention necessary for his total post-operative care." Dr. Novello handed the hospital fines totaling $48,000, the maximum allowed by law. Mount Sinai halted its liver transplant program after the death of the patient, a former reporter with The New York Post, and said it would not resume them until its internal investigation and the state's probes were finished. The recipient of the partial liver, who is himself a physician, has since recovered.
Banner Health signs deal for stereotactic mammography system
Phoenix-based Banner Health System and Milwaukee-based Instrumentarium Imaging have reached agreement on a three-year, sole-source contract for mammography equipment and accessories. The deal covers the complete Instrumentarium Imaging mammography product line including its new Diamond Breast Imaging System with integrated stereotactic capability.
ECRI offers free info on protective gear for emergency responders
ECRI's Center for Healthcare Environmental Management (CHEM) has issued an advisory on the selection, use and maintenance of appropriate personal protective equipment for frontline healthcare worker use in emergency response situations. The CHEM Advisory is free and may be found on ECRI's website at www.ecri.org.
Survey: Most surgery patients have low risk for post-op infection
A recent survey of more than 221,000 surgical cases at hospitals nationwide between January 1 and December 31, 2000 reveals that more than 58 percent of the patients were left with Class I wounds, while 33 percent received Class II wounds. Class I wounds have the least potential (1 percent to 5 percent) for contamination during surgery. Vascular surgery, cosmetic surgery, eye or ear surgery, and cardiac surgery are examples of procedures that result in Class I wounds.
Class II surgical wounds are often associated with appendectomies, lung surgery, hysterectomies and dental surgery, if no inflammation or pus is visible. Class II clean-contaminated wounds have a 3 percent to 11 percent risk of infection.
Meanwhile, Class III wounds, which accounted for a little more than 2 percent of the cases studied, carry a 10 percent to 17 percent risk for postoperative infectious complications. These sites are considered "contaminated," and include open, fresh, accidental wounds; surgical procedures involving major breaks in technique or gross spillage from the gastrointestinal tract; and incisions in which acute, nonpurulent inflammation is encountered. Class IV and class V surgical wounds are considered "dirty," and accounted for a little more than 1 percent of all cases studied.
The data was gathered using perioperative information produced by a system developed by Surgical Information Systems, Alpharetta, GA, that captures patient data before, during and after surgery, at the point of care. The data was entered into the information system as part of the nurses' normal charting of the surgical case.
Novation picks non-acute med-surg distribution partners
Novation has awarded new distribution agreements to 11 med-surg distributors serving the group's home health, long-term care and physician office members. Non-acute care members of HealthCare Purchasing Partners International will also have access to these agreements. Distributors that will participate in the new round of agreements are Gulf South Medical Supply, Jacksonville, FL; Caligor Medical Supply, Pelham Manor, NY; Shared Services Systems, Omaha, NE, Kreisers Inc., Sioux Falls, SD; Medline Industries Inc., Mundelein, IL; Seneca Medical Inc., Tiffin, OH; Allegiance Healthcare, McGaw Park, IL; Physicians Sales and Services, Jacksonville, FL; Buffalo Hospital Supply, Buffalo, NY; Medical Specialties Distributors, South Easton, MA; Direct Medical Supply, Houston.
Catholic Healthcare Partners signs up for automated supply management system
Cincinnati-based Catholic Healthcare Partners signed an agreement with San Francisco-based McKesson Automation for SupplyScan, an automated point-of-use system for managing supplies and capturing inventory and usage information. Under terms of the agreement, for the next three years McKesson Automation will be the exclusive vendor of open point-of-use supply management scanning technology for the 31 CHP facilities. Separately, CHP signed a multi-million dollar agreement with McKesson for Horizon Clinicals, including the Horizon Expert Orders computerized physician order entry and clinical decision support system.
Guidant halts development of advanced stent
Guidant Corp. has stopped development of an experimental drug-coated stent because the device failed in a study to prevent arteries from reclogging, the company says. The decision to abandon the product, based on the results of follow-up monitoring on the first 90 patients enrolled in the study, costs Guidant entry in competition with Johnson & Johnson and others to develop next-generation stent product. Guidant CEO Ronald Dollens said the recurrence of clogging in patients implanted with the actinomycin-D stent was "substantially higher than would need to be for this to be a viable product in the marketplace." Indianapolis-based Guidant is continuing work on a stent coated with the cancer drug paclitaxel in a joint project with Bloomington, IN-based Cook Inc. Some analysts have predicted the new stents could double the $2.2 billion U.S. market for the products. Guidant now claims about 48 percent of the market.
You're next! Florida Hospital hands out ER pagers
Taking a cue from restaurants, Florida Hospital is beginning to hand out pagers to relieve congestion in its overcrowded emergency rooms, according to a report in the Orlando Sentinel. Last month, Florida Hospital Celebration Health purchased 20 pagers to give to non-critical ER patients. The idea was so successful that nearby Winter Park Memorial decided to begin a similar program within the next few months and many of Florida Hospital's other campuses in Central Florida will follow suit within the next year. The pagers do not relieve wait times, which can stretch up to four hours at Celebration Health, but they do give patients the freedom to roam the hospital's spacious campus, munch on snacks at the cafeteria or get some fresh air while they wait.
CMS predicts healthcare costs near $3 trillion in next 10 years
Spending for healthcare is expected to increase to $2.8 trillion during the next 10 years, the Centers for Medicare & Medicaid Services said Friday in an announcement previewing a report to be released this week. CMS projects healthcare will grow at an average annual rate of 7.3 percent between 2001 and 2011 and reach 17 percent of the Gross Domestic Product by 2011, up from 13.2 percent in 2001. Private healthcare spending is expected to grow 8.9 percent in 2001 and 9.4 percent in 2002, up from 6.9 percent in 2000. The American Hospital Association says the report is slated for publication in the journal Health Affairs this week.
Medline nabs two-year Premier agreement, plus five-year pact for dressings and sponges
In a new two-year agreement which began March 1, San Diego-based Premier Inc. will offer its members a portfolio of disposable basin bathing products called ReadyBath from Medline Industries Inc., Mundelein, IL. The agreement includes the ready-to-use bathing system and new product extensions ReadyBath Shampoo & Conditioning Cap and ReadyBath Total Perineal Care. With the addition of this new agreement, Medline now has contracts with Premier covering textiles including disposable pillows and mattresses, patient aids, disposable protective apparel, caps and shoe covers, non-sterile kits, patient plastic utensils and suction catheters.
Separately, Medline signed a five-year exclusive agreement with AMD-Ritmed Inc. that covers specialty surgical dressings and sponges. With this agreement, AMD's existing customers within the U.S. will have the flexibility of either purchasing directly from Montreal-based AMD or buying the specialty sponges through Medline. All new customers will purchase the sponges directly from Medline. Some of the products in the agreement include neurological sponges, peanut sponges, dissector sponges, tonsil sponges, ophthalmic sponges and nasal sponges.
Sutter Health signs blood gas product contract
Sacramento's Sutter Health has signed a one-year agreement with RADIOMETER America Inc., Westlake, OH, to provide blood gas analyzers and related products and services to the California IDN. Sutter Health serves more than 100 Northern California communities, from the Oregon border to the San Joaquin Valley, and from the Pacific coast to the Sierra foothills. The agreement applies to blood gas instruments used in the respiratory therapy departments throughout Sutter Health's 28-member hospital network. While the agreement is in effect, any replacements to these instruments will be made with RADIOMETER equipment.
HCA sees big hike in 2003 expenditures
Jack Bovender, chief executive for the hospital chain HCA, the nation's biggest U.S. hospital company, said last week that he expects his company's capital expenditures to jump by 12.5 percent to $1.8 billion in 2003 from $1.6 billion this year as it seeks to improve operations. The Nashville, TN-based chain will spend more on adding operating rooms, hospital beds and radiology space, Bovender said. HCA also plans to build three hospitals in Las Vegas, Dallas and near its headquarters in Nashville, he said.
Health officials probe why Olympus scope was used after recall
The FDA and state health department officials stepped up their investigations of a defective bronchoscope that had remained in use until last week, nearly three months after a product recall. The scope maker, Olympus America, Melville, NY, was informed last September by a Tennessee epidemiologist that a defective part in the $12,000 device could harbor organisms that might survive chemical disinfection, and the company recalled the device last November. Hundreds of institutions apparently never got the word. Among them: Baltimore's Johns Hopkins Hospital which announced this week that two patients died of pneumonia after bronchoscopies and about 100 other bronchoscopy patients tested positive for the same bacteria. Hospital officials said the recall notice apparently had been misdirected to a loading dock instead of the infection control department and only after the hospital figured out the complex problem on its own did the proper personnel learn of the recall.
Shriners signs with Alliance for medical device reprocessing
Shriners Hospitals for Children signed a three-year sole-source agreement with Phoenix-based Alliance Medical Corp., for reprocessing of medical devices. The agreement runs until Feb. 1, 2005 and covers all 20 U.S. Shriners hospitals.
Premier in data sheet deal with MSDSonline
MSDSonline has been awarded a contract by San Diego-based Premier Inc. for its electronic-based Material Safety Data Sheet (MSDS) services. Under the agreement, Chicago-based MSDSonline will provide participating members with program rates for its MSDSadvantage, BinderView and MSDS Compliance Services offerings. Each of the three services is aimed at helping Premier members lower costs while limiting the liability associated with meeting compliance requirements of JCAHO and OSHA.
DoD awards imaging contract to Toshiba
The Defense Logistics Agency Support Center in Philadelphia has awarded a contact to Toshiba America Medical Systems Inc., Tustin CA, to supply a complete diagnostic imaging product line to U.S. military hospitals, clinics and other federal agencies worldwide. It is estimated that the annual purchases of diagnostic imaging equipment will total $25 million. Under terms of the new contract, DoD facilities, as well as other federal hospitals, can purchase Toshiba's diagnostic imaging systems through the Defense Supply Center contract. The agreement covers a one-year period that could be extended up to five years.
Olympus blames bronchoscope infections on poor cleaning
Olympus America, manufacturer of the bronchoscope implicated earlier this week in the pseudomonas infections at Johns Hopkins Hospital in Baltimore, is blaming faulty cleaning of the equipment for any infections. The company says that in December it had voluntarily recalled thousands of the devices because it would be hard to prove that they were not responsible for the infections. Olympus denied any wrongdoing in failing to start a recall until December even though the company was aware of the defective part in September. At a news conference yesterday, Olympus acknowledged that it knew in September that a screw-on part of the bronchoscope could come loose. Bacteria could get trapped inside the opening, the company said. But the company's tests showed that the bronchoscope did not pass on infections if it was sterilized properly. The company still decided to recall 14,000 bronchoscopes made in Japan since 1997 and sold worldwide. Olympus said that it sent out recall letters approximately at the end of November or the beginning of December, including three letters to Johns Hopkins, and notified the FDA last Dec. 3. It sent a similar report to the Japanese health authorities Dec. 11. Johns Hopkins physicians said they didn't learn of the recall until early February.
Maxxim Medical to add medical glove customers from American Health Products
Maxxim Medical has reached an agreement with American Health Products Corp., a subsidiary of WRP Corp., Itasca, IL, a supplier of a range of specialty medical glove products. Under the agreement, AHPC will provide transition services to Waltham, MA-based Maxxim to facilitate the transition of AHPC's medical products division customers to Maxxim, itself a manufacturer of disposable medical examination and surgical gloves, as well as a range of specialty medical products that include custom surgical procedural trays and vascular devices.
Boston Scientific joins Broadlane ranks
Boston Scientific Co., Natick, MA, has signed an agreement with San Francisco-based Broadlane Inc. to integrate products used in coronary and peripheral interventions, cardiac electrophysiology, radiology/oncology interventions, neuro/peripheral interventions, vascular surgery, endoscopy and urology into Broadlane's e-commerce exchange beginning March 15.
GE Medical Systems acquires iPath
Milwaukee-based GE Medical Systems has acquired iPath, a developer of surgery management software. Based in Powell, TN, iPath's ORMIS surgery management software is installed in more than 240 hospitals. The iPath technology will be integrated with GE's clinical information system, GE Centricity Enterprise, to create a paperless patient medical record for the operating room and beyond. GE says it expects the overall perioperative information systems market to expand to more than $250 million by 2005.
Senate panel may probe GPOs
The Senate Judiciary Committee may schedule a hearing to examine hospital group purchasing organizations in response to anticompetitive concerns, a committee spokesperson said yesterday. The concerns, raised by medical device makers and committee Chairman Sen. Patrick Leahy, D-VT, were raised the same day an article in Monday's New York Times reported on financial ties Premier Inc. and Novation have with medical supply companies.
Critics charge that these ties compromise the groups' mission of finding the best products for hospitals at the best prices. The Medical Device Manufacturers
Association said the article validates its concerns. It urged Congress to examine possible abuse of the GPO administrative fee structure and end the GPO practice of contract bundling.
The April issue of Healthcare Purchasing News will contain a detailed examination of the Times report and its accompanying fallout.
Medline in talks to acquire Angelica uniform unit
Medline Industries announced it is negotiating to purchase the healthcare apparel portion of Angelica Corporation's Manufacturing and Marketing segment. Medline, which is based in Mundelein, IL, is seeking to acquire the apparel portion of St. Louis-based Angelica's Image Apparel operations, including the existing inventory, sales, marketing and distribution for items such as scrubs, lab coats, surgical apparel, patient wear and professional healthcare apparel. Upon completion of the deal, the combined market share of Medline and Angelica healthcare textiles will total over $310 million and more than 19,000 items. The combined offering of Medline and Angelica products and services will be accessed through Medline's 650-plus national sales representatives and 23 distribution centers.
Contaminated bronchoscopes endanger scores of Johns Hopkins patients
As many as 100 of 410 patients who underwent a diagnostic lung procedure at Baltimore's Johns Hopkins Hospital since last June have tested positive for exposure to a potentially deadly infection, probably from contaminated bronchoscopes. The New York Times reports that the bronchoscopes, since recalled by Olympus America, Melville, NY, may have contributed to the deaths of two patients treated at the hospital, officials said. The roughly 25 percent exposure rate is two to three times higher than normal. In a written statement, Hopkins officials said they have initiated an "aggressive campaign" to contact patients who had the procedure since June, so the patients could be evaluated for the infection.
Cleveland-area product expo slated
PDM Healthcare announced that it has scheduled Expo 2002 for June 7-9 at the International Exposition Center in Cleveland. For more information, contact PDM Healthcare, 24700 Center Ridge Rd. Suite 110, Cleveland, OH, 44145; Phone: 440-871-1721; Fax: 440-871-1722.
Times begins report on group purchasing
Industry insiders known that Premier Inc. and Novation have a tight grip on medical supply purchasing but the two group purchasing organizations and others are under the gun for allegedly keeping innovative products developed by non-contracted medical device manufacturers out of U.S. hospitals, according to the first of a series of articles published by The New York Times on Monday. The initial report, which had been anticipated for some time, takes a detailed look at the financial and sometimes political hold that GPOs have on hospital purchasing.
Michigan hospital nearing close of major expansion
St. Joseph Mercy Hospital in Ann Arbor, MI is expected to complete a $20 million expansion by June 2003. Responding to a need to accommodate increased patient volume, St. Joseph Mercy will expand its emergency department and laboratory to 41,800sf from its previous 22,210sf. Visits to the institution's emergency department rose to 69,381 in 2001 from 63,464 in 2000.
Georgia hospitals report sharp rise in nursing vacancies
Georgia hospitals have seen a 38 percent increase in nursing vacancies in a two-year period, according to a recent Georgia Hospital Association report. Between 1991 and 2001, nursing vacancies increased 25 percent (2,757 unfilled positions), and LPN vacancies more than doubled (527 unfilled jobs), according to the survey by the Georgia Hospital Association. Nursing isn't the only shortage in the state's healthcare system. The survey also found that allied position vacancies hit the 40 percent mark. That category includes pharmacists, radiographic technologists and respiratory therapists.
Space is the place for GE Medical Systems equipment
Astronauts aboard the Space Shuttle Columbia who are working today on the Hubble Space Telescope Servicing Mission have on board heart-monitoring systems made by GE Medical Systems. During space walks to work on the sophisticated telescope, cardiac information on the astronauts is sent in real-time to Mission Control at the NASA Johnson Space Center. GE's CIC Pro Clinical Information Center and the Apex Pro Telemetry System will allow staff to monitor the data.
New AIDS and hepatitis C tests cleared, but costs could spiral
Just as the FDA has approved a highly sensitive test to screen blood donations for the viruses that cause AIDS and hepatitis C, critics are worried about the cost of the new test, which will eventually be made mandatory after the agency writes formal guidelines, the New York Times reports. The new approval will allow Chiron Corp. and Gen-Probe, the San Diego-based companies that developed the test, to sharply increase the price, to about $10 to $15 for each unit of blood, from $4 to $5 per unit when the test was experimental. Critics are saying that the blood supply is already so safe that the U.S. will spend hundreds of millions of dollars on techniques that do not save many lives or prevent many infections. That money, they argue, might be better spent on things such as preventing transfusions of the wrong blood type, which is a greater risk than contracting AIDS or hepatitis.
NJ hospital cleans up act; admits patients again
One day after imposing a ban on admitting new patients, New Jersey regulators have allowed 108-bed Memorial Hospital of Salem County to resume admitting patients. The one-day ban on admissions was prompted by a routine state inspection that identified deficiencies in nursing, infection control, pharmacy and other patient care services. The restrictions were lifted following a meeting with hospital officials late last week followed by a second on-site inspection. The hospital could still be subject to a fine.
In addition, Community Health Systems, Brentwood, TN, reached a definitive agreement to purchase the financially struggling not-for-profit hospital in November; the health department and the state attorney general are reviewing the chain's application and a health department advisory council is scheduled to hold a hearing on the matter on Thursday. If the $35 million deal goes through, Salem Memorial would become the first for-profit hospital approved in New Jersey since 1974.
MedEcon signs glove pact with Canadian firm
Managed Healthcare Associates, MedEcon, Florham Park, NJ, has signed a three-year agreement with ECI Medical Technologies Inc., a manufacturer based in Bridgewater, Nova Scotia, Canada, covering latex-free synthetic surgical gloves. The non-latex surgical gloves included in the contract address both Type I and Type IV allergic reactions. The contract is valued at more than $1.8 million.
Medicare to cover PET scans for breast cancer patients
The Centers for Medicare & Medicaid Services says it will expand Medicare coverage of Positron Emission Tomography (PET) to patients with breast cancer. CMS said PET scans can serve as a means to evaluate the extent of the disease and also help doctors assess the response to treatment in women with severe disease. Medicare will cover PET full- and partial ring scanners as an adjunct to standard imaging modalities for staging patients with distant metastasis or retagging patients with locoregional recurrence or metastasis. It will also cover PET as an adjunct to standard imaging modalities for monitoring tumor response to treatment for women with locally advanced and metastic breast cancer. A coverage date has not been set. More information is available at www.hcfa.gov/coverage/8b3-vv1.htm.
Infection issues lead N.J. to bar hospital from accepting new patients
State health authorities ordered 140-bed Memorial Hospital of Salem County in Trenton, NJ to stop accepting patients after inspectors found unsanitary conditions and inadequate nursing care, officials said Wednesday. The hospital can keep its emergency room open and perform emergency surgeries, state officials said, and patients already in the hospital will still be cared for. State officials said annual inspections found the hospital's infection control inadequate and supplies and operating room equipment weren't sterilized. Also, a substantial number of patients lacked proper nursing care and had bedsores, while drug prescriptions were incomplete and illegible. The hospital has begun fixing the deficiencies, said hospital president and CEO Denise R. Williams.
Broadlane adds AmerisourceBergen, upgrades Exchange
Broadlane Inc. yesterday announced the integration of AmerisourceBergen, Broadlane's largest supplier, into the Broadlane Exchange, the company's private e-commerce exchange. In addition, the company announced the addition of two important new transaction sets to the Exchange, electronic invoicing and advance shipment notification.
AmerisourceBergen provides pharmaceutical supplies and services to the majority of Broadlane's healthcare customer base. With the integration of AmerisourceBergen into the Broadlane Exchange, these customers now have access to much more detailed and timely information about their pharmaceutical purchasing patterns. Pharmaceuticals represent the largest single supply expense for the majority of Broadlane's healthcare customers.
Broadlane says its enhanced technical capabilities allow both suppliers and providers to automate the traditionally manually intensive functions of receipt verification and invoice payment.
Computer Motion, Karl Storz form strategic alliance
Computer Motion Inc., a developer of medical robotic systems, Karl Storz Endoscopy, based in the U.S. in Santa Barbara, CA, have begun an alliance to collaborate in the development of products that enhance the compatibility between Karl Storz Communication Bus and HERMES-Ready devices in an OR1 integrated operating room. The agreement specifies terms for Karl Storz to license speech and voice recognition technology from Computer Motion, and for the products developed as a result of the agreement to be co-marketed.
The HERMES Control Center is a centralized system that enables the surgeon to use simple voice commands to control a network of "smart" medical devices in the operating room. OR1 provides surgeons and O.R. staff with a fully integrated operating room environment. Using sophisticated electronic systems, OR1 provides centralized control of every component of the surgical suite, including overhead mounting systems, surgical lights, operating room tables, endoscopic equipment, cameras, video systems and documentation solutions.
S&P upgrades Catholic Healthcare West credit outlook to stable
Standard & Poor's has changed its ratings outlook for Catholic Healthcare West to stable from negative, saying the health system has made major strides in reversing operating losses midway through its three-year turnaround plan. The health system's operating loss for the six months ended Dec. 31 was $10.3 million, down from $96.6 million in the year-earlier period, S&P said. Those results exclude seven hospitals CHW spun off in December in a sale creating Daughters of Charity Health System. S&P said CHW should come close to meeting its target of breaking even by fiscal year-end, adding potential risks include possible increased labor costs resulting from union negotiations.