News 01/26/06

From Anonymous: "Misys is close to announcing an acquisition." If you'd like to whisper it to me, I'm here. In fact, I'll send you an HIStalk Yearbook 2005 if you tip me off before the whole world knows. Readers have helped me scoop everyone else a few times lately and I like it.

From Anonymous: "Re: Hummel. The bizjournal article said he left to get more balance in his life. Hmm CIO to consultant. Balance. Hmm, unless consulting has changed radically overnight something is wrong with this equation. Sounds like a mutual separation."

From ClinApps: "HIStalk makes the Cerner board. Apparently you've gained a reputation." The subject of the message was HIStalk: "Cerner just takes a relentless beating on that widely-read board. It's all about Meditech and Epic there. I think the trash-talk is beginning to have an effect on the CIO view of Cerner (along with McKesson and a few others)." Well, I have several immediate reactions. First, I'm happy for the publicity and I'm preening proudly at being called widely read, although I can't imagine having much influence on CIOs. However, I take exception to the suggestion that I trash-talk Cerner. Much of what might be perceived as Cerner bashing here is actually my quoting of someone else, like HIStalk readers or stock message board posters. I'd also define bashing as knowingly saying something that isn't true, which I defy anyone to find examples of here (recall that I was just about the only person defending Cerner in their Children's Pittsburgh PR nightmare, which happens to be the #1 most-read HIStalk article ever.) Maybe the message refers to the HISsies voting since I rarely mention Epic or MEDITECH otherwise. All those nominations and voting are from HIStalk readers, not from me. If Cerner comes out winning in some unflattering categories, it's either because that's how HIStalk readers feel or other vendors did a better job than Cerner did in mobilizing folks to vote the party ticket.

Speaking of the HISsies, they're winding down. Turnout has been good. Anyone who hasn't voted should do so immediately. If not, you'll be kicking yourself when I grandly announce the winners in a few days.

CIO Field Report

• Hospital type: Commercial/For-Profit, Single Hospital, <200 Beds, Midwest.
• IT Operating Budget: <$2 million.
• Most important IT projects now underway: Decision support, IP telephony, single sign-on.
• Systems you'll buy within three years: We're a core MEDITECH user, will purchase their ED module, bedside medication verification, and CPOE module.
• Best application vendors: MEDITECH, PtCT, ImageNow.
• Worst application vendors: MEDITECH, PtCT, ImageNow (funny how that works.)
• Hottest IT skills in the market: Data analysts.
• Hottest people in the industry: I'd say John - do you even need a last name? (Glaser)
• Comments: I don't devote enough time to your website.

This must have spoiled New Year's Eve. An employee of the home health division of Seattle's Providence Health Systems took unencrypted computer backups home per department policy to prevent loss from disaster. Now the health system has an even bigger disaster as the tapes were stolen from the employee's car on December 31, exposing the PHI and identity data of 365,000 patients.

Orange County, California decides to cough up $1.6 million to pay off Cerner for a billing system that ran years late. "Supervisor Chris Norby noted that the county may be paying twice for the same service, which was supposed to be paid in full years ago under a fixed-price agreement. Yet because the agreement has been kept secret – with the company arguing that a public release could jeopardize its trade secrets – there’s no way to tell whether Norby is correct."

Triad Hospitals will outsource IT operation of its 49 hospitals to Perot Systems in a ten-year, $1.2 billion deal. McKesson was also a winner, as it bags a separate $120 million contract for a complete Horizon Clinicals rollout to Triad hospitals.

Speaking of McKesson, earnings just came out: EPS of $0.61 vs. -$2.26 a year ago and beating consensus of $0.52. They also raised guidance.

Fort Wayne-based medical office software vendor Medical Informatics Engineering is being investigated by the FBI, apparently for hacking the software of new cross-town competitor triPRACTIX. Thanks to TiredCIO for the tip.

Cleveland's University Hospitals and Health Systems says they'll implement Eclipsys Sunrise clinicals, including their new pharmacy system. That's not quite as strong as having a signed contract in hand, but notice that it is earnings season and good news seems to be hoarded and spun for just that purpose by every publicly traded vendor. UHHS is a TDS customer, as is often the case in a Sunrise sale.

Misys reports profits that are down 20% for the first half of the year. The company will streamline its banking operations and divest some minor business units. As usual, healthcare wasn't an important enough part of their portfolio to warrant a mention, not necessarily a bad thing given the company's uninspiring performance.

Interesting timing: New York's Lenox Hill Hospital signs up for A4's Healthmatics ED and Canopy Care Management.

Imaging vendor Emageon announces a year-end booking backlog of $158 million.

Longtime healthcare IT guy Jim Bradley joins the board of claims processor GTESS. You may remember him from United HealthCare, iMcKesson, or Abaton.com. Boy, that iMcKesson idea seems hopelessly lame and fad-driven, doesn't it? I remember them trying to explain (usually unsuccessfully) just what it was and why anyone should care. On the other hand, I glazed over when it came up so I probably just missed its wonderfulness.

Insider Mark Vachon is the new CEO of GE Healthcare Technologies in Waukesha. Would Waukesha be a city whose state I don't even need to mention if GE weren't in town?

A panel of medical bigwigs is urging the profession to replace largely ignored voluntary standards for dealing with drug companies with stricter guidelines limiting acceptance of meals, phony consulting jobs, entertainment, and cash, on which drug companies spend $13 billion a year. The JAMA article mentions the omission of negative study data by scientists who are on the take from drug companies, probably not mentioning Cleveland Clinic by name even though they're a poster child for stepping well over even a generously placed line.

Here's an update on Midlands Memorial's implementation of Medsphere's OpenVista EHR, going live on the first units in a month. Like all hospitals, they couldn't resist giving it a dopey name based on a awkwardly contrived acronym, in their case calling it EDITH. They probably had a contest, although if EDITH was the winner, they must have had some real gems submitted.

Wyoming's 99-bed Ivinson Memorial Hospital wants to get into the ASP business, hosting systems for tiny hospitals. The hospital expects to make millions and create high-paying jobs, which hardly ever happens when that's the primary motivation and even more rarely when a non-profit hospital tries to remake itself as a lean, mean, business machine. Good luck to them anyway. I like rooting for small hospitals.

Rich Tarrant eats his 35th campaign spaghetti dinner and says he wants to eliminated Medicaid in favor of an expanded Medicare. He mentioned how much business IDX got due to ever-changing Medicaid regulations. He also said that health problems made him decide to retire from IDX in 2002, but he came back when he felt better.

Gartner questions Oracle's security.

From the stock message boards:

Cerner
"HIStalk. Cerner just takes a relentless beating on that widely-read board. It's all about Meditech and Epic there. I think the trash-talk is beginning to have an effect on the CIO view of Cerner (along with McKesson and a few others)."

"Not neccessarily. Histalk is not a cheerleading stage for Epic and Meditech. Though I do have to say in talking to those that have been around the implenentation and support of these products tend to be very positive. I can't say the same thing about Cerner at times. Anyway, here are the nominations for the "2006 Hissues" that mention Cerner: smartest vendor strategic move, most impressive vendor sales deal, worst healthcare IT vendor, most impressive vendor at the HIMSS Annual Conference 2005, HIS industry figure in whose face you’d most like to throw a pie. The pie throwing is obvious as Neal tends to be on the arrogant side. Other than that, I see folks that have been pretty positive about Cerner. I will also say this, despite the so-called negative feed-back and perceptions from CIO, I will say this: 1. Impact is lesser than you think. I haven't seen Cerner slow down. 2. Has Cerner done productive steps to correct the perception of hard and lengthy implementaiotns and less than stellar support? 3. Do you need an "Up with Cerner" website or blogger to make you feel better about Cerner? Any volunteers for number three?"

Emdeon
"The blame game and deal making has started. Notice the article quotes the Feds as saying the investigation is ongoing. More heads will roll before this is over. Who will be first to want to cut a deal, Kang or Singer?"

"Former WebMD exec pleads guilty to conspiracy. A former executive with a unit of what was once WebMD Corp., now Emdeon Corp., pleaded guilty to tax evasion and conspiring to inflate the company's earnings from 1997 to 2001. The defendant, Henry Holbrook, 51, helped create Medical Manager and served as one of its vice presidents during the period. Prosecutors said Holbrook had companies acquired by Medical Manager pay kickbacks to himself and others. Holbrook and other senior managers also inflated quarterly revenue in order to beat analysts' expectations and boost the market price of Medical Manager and WebMD stock, prosecutors said. Holbrook could face up to five years in prison on both the conspiracy count and the tax evasion charge. Last month 10 other former executives of Medical Manager were indicted on conspiracy and money-laundering charges. -- by the Associated Press."

LanVision
"New high, decent volume and no news. Someone knows something."

"LANV is presenting to a big group of analysts today in New York....looks like they like what they're hearing...."