Discuss Monday Morning Update 7/23/07

[Mr. HIStalk]

Discuss here.

[HISjunkie]

What I find most interesting is the new buyers comming into the HIS market.
Last several buy-outs were by Private Equity(PE) / Venture capital players, not HIS vendors (except Qmed deal).

PE players (as seen in comercial industry) buy low performing assets, then turn them over in a few years. They are high risk players, looking for high return investments with short horizons (2-5 years). When an asset is under performing you pump up profits by either increasing revenues and/or reducing costs. Since in the HIS world it takes over a year to get a large contract - (hospitals are not known for fast decision making!) the quickest thing you can do to pump up and asset value (profitability) is cut costs - usually marketing, support and R&D get cut first.

As the large HIS companies sit by the sidelines the HIS world will be in turmoil as more PE's enter the market. Fasten your seat belt!

[twodogmom]

Anyone out there have any detailed info/experience with Mediware and their Blood Bank product HCLL? I know of an organization that is implementing this product and they've sensed the company is in real trouble. With the news posted about their OR division I wonder what's next?