Deals, Deployments, and Short News – August 19, 2008

Noteworthy Medical Systems is acquiring strategic partner ChartConnect. Noteworthy Medical Systems is the originator of the market's only three-screen ambulatory electronic health record (EHR). ChartConnect's web-based applications facilitate communication between care providers and securely allow the exchange and transfer of clinical information between care providers and the various parties who support the provision of care in a community, i.e., laboratories, radiology departments, pharmacies, hospitals, transcription services, etc. The new company will retain the name Noteworthy Medical Systems and will serve a combined customer base of more than 1,200 practices, 5,700 health care providers and 12,000 users across 43 states, with company locations in Cleveland, Ohio; Phoenix, Arizona; Yakima, Washington; and Pocatello, Idaho.

Arkansas Blue Cross and Blue Shield has signed a perpetual license for TriZetto’s Clinical CareAdvance application to help manage members’ acute and chronic illnesses and improve health status across its member population. Arkansas Blue Cross, an independent licensee of the Blue Cross and Blue Shield Association, is the largest health insurer in the state, serving approximately one-third of the fully insured market. TriZetto’s software and IT services are used by more than 60 percent of Blue Cross and Blue Shield plans nationwide. TriZetto’s Clinical CareAdvance system will consolidate data from three legacy systems and integrate several manual processes currently used by Arkansas Blue Cross to streamline processes and gain efficiencies. The care management product will go live at the Little Rock-based payer in approximately one year.

Picis recently conducted a poll of more than 300 physicians, nurses and hospital administrators to gain further insight into the most critical factors affecting today’s health care climate. The Picis poll revealed “physician and nurse recruiting and retention” as the most pressing concern for hospitals during the next 12 months—ranking higher than both the impact of the economy and Medicaid/Medicare reimbursement cuts. “The rollout of electronic health records (EHRs)” ranked as the second biggest concern and raised additional questions about how the role of government-funded EHR initiatives and the joint ventures from companies such as Google and Microsoft will affect the future of hospital technology systems. This live poll was conducted by Picis on June 15-18, 2008, at its annual Picis Exchange customer conference in Palm Beach, Fla., among 325 attendees who are employed as physicians, nurses, IT technicians or hospital administrators in hospitals and health centers across North America. Findings from these polls and complete results and related industry reports on the top concerns facing U.S. hospitals today can be found at

Picis has also announced agreements with six major health systems in the United States and Canada to replace their existing operating room (OR) and anesthesia information systems (AIS) with Picis’ solutions. These leading institutions consist of Bellevue Hospital Center in New York City, Enloe Medical Center and Salinas Valley Memorial Healthcare of California, The Ottawa Hospital of Ontario, Tufts Medical Center in Boston, Mass., and University Health System, San Antonio, Tex.

Health Level Seven (HL7) has announced the release of Version 3 Normative Edition 2008, a globally-defined suite of specifications based on HL7’s Reference Information Model (RIM). This suite provides a single source that allows implementers of V3 specifications to work with the set of messages, data types, and terminologies needed to build an implementation. HL7 Version 3 (V3) is currently being adopted to support large scale integration, public health, decision support and research. Within the US, jurisdictional agencies needing support for large scale integration (e.g. CDC, FDA) have adopted V3. Significant V3 national implementations also exist in Canada, the United Kingdom, the Netherlands, Mexico, Germany and Croatia.

PatientKeeper has closed a $7.5 million round of funding. The round was led by new investor Flybridge Capital Partners and included existing leading health care investors Frazier Healthcare Ventures, New Enterprise Associates, and Whitney & Company. The funding will be used to increase the company's investment in research and development and support expanded operations as it continues to grow at a rapid pace.

HLM Venture Partners, a Boston and San Francisco-based health care venture capital firm, announced that it has led a $7 million Series B financing in Medicalis Corporation, an expansion-stage health care information company providing next generation, clinical decision support software and integration technologies focused on improving the quality and efficiency of diagnostic imaging in health care. The company is headquartered in Kitchener, Ontario in the Waterloo region outside of Toronto.

Kossuth Regional Health Center in Algona, Franklin General Hospital in Hampton and Mitchell County Regional Health Center in Osage implemented a regional network called EHR10. The three hospitals are the first of seven Mercy Health Network - North Iowa rural facilities to implement computerized physician order entry (CPOE) and other clinical/revenue systems. The other four will follow suit in September. The integrated EHR10 system is the first integrated network in a U.S. rural health care setting. While larger hospitals are more likely to have electronic health records, less than 3 percent of the nation’s small or rural hospitals (50 beds or less) tout a fully implemented system. The rural hospitals are members of a preferred referral network through Mercy Medical Center – North Iowa, Mason City, a member of Trinity Health. The hospital implemented its fully operational digital health record in 2005 as part of Trinity Health’s system-wide initiative known as Genesis.

MEDecision has become a wholly-owned subsidiary of Health Care Service Corporation (HCSC) and MEDecision's shareholders received $7.00 per share in cash. At a special meeting of shareholders held on August 14, 2008, MEDecision’s shareholders adopted the merger agreement and approved the merger, with holders of approximately 88 percent of the outstanding shares as of the record date voting in favor of the transaction.

CareTools has announced its native digital medical record system for iPhone and iPod touch is now available on the Apple App Store. iChart has been designed to act as an electronic “personal medical assistant” and focuses on streamlining the daily “chart, bill and fill” routine of every health care provider. iChart leverages the advanced capabilities of iPhone and iPod touch to warehouse patient data, and images, in addition to providing an updated list of medications, drug interactions, pharmacies, billing codes and complaint specific clinical templates. Synchronization of new information is accomplished wirelessly using secure web technology and iChart allows a single provider or entire health care network to automate medical data capture and effortlessly look-up patient related information using an efficiently designed “touch and tap” interface. iChart application will priced from $139 and can be downloaded wirelessly from the App Store using iPhone or iPhone touch.

QuadraMed has announced that Los Altos Hills, Calif.,-based Daughters of Charity Health System (DCHS) has signed a $15.8 million contract to expand the use of QuadraMed CPR (QCPR) across its five-hospital network. With this contract, DCHS has purchased software and services for the QCPR platform including interactive care-grid, order management, access management, clinical decision support, nursing documentation, chart management and additional software for scheduling, electronic document management, medical records, computerized physician order entry and patient registration. This new agreement is in addition to the $6.7 million, initial Phase 1 agreement for the QCPR integrated medication management system, which was originally finalized on Nov. 30, 2006.

Midmark Diagnostics Group’s (MDG) IQmark digital diagnostics products now interface directly with and are certified for use with the Allscripts Electronic Health Record (EHR) solution. MDG and Allscripts have partnered to offer the most robust interface possible between MDG’s IQmark’s Digital ECG, Digital Spirometer, EZ Holter and Advanced Holter and Allscripts to optimize connectivity and workflow for health care providers.

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