Attached files
Exhibit
99.1
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For
immediate release.
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Contact:
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John
Van Blaricum
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913.307.1017
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Mediware
Acquisitions Expand Home Infusion Market Share
Addition
of Healthcare Automation Inc. and Advantage Reimbursement Inc. grows Mediware’s
home infusion customer base from 150 to 450 customer facilities
LENEXA, KS November 24, 2009 -
Mediware Information Systems, Inc. (Nasdaq: MEDW) announced today that it will
acquire Healthcare Automation Inc. (HAI) and Advantage Reimbursement Inc.
(ARI) and continue the company’s market expansion strategy to
increase its penetration of the home care solutions market. The two
organizations, acquired from a single ownership group, provide software and
outsourced reimbursement services to home health providers, specifically home
infusion and specialty pharmacies. Terms of the deal include a cash payment of
$5.5 million, with an additional cash payment of up to $1.5 million if
performance targets are met. Mediware expects to complete the acquisition before
December 15.
“The
additions of these organizations to Mediware are an exciting expansion of a
growth strategy that includes strategic acquisitions, developing new products,
and expansion of our existing customer base,” said Thomas Mann, Mediware’s
president and chief executive officer. “Adding to the acquisition of HOS just
over a year ago, our home infusion customer base will increase to more than 450
facilities.”
Home
health products and services became a focus for Mediware last year with the
acquisition of Hann's On Software (HOS) and the Ascend pharmacy management
system. These products help ensure safe and efficient drug therapies in small
acute care and outpatient hospitals, as well as home infusion providers and
specialty pharmacies.
The HAI
acquisition expands Mediware’s market penetration by adding complementary
pharmacy, home medical equipment, home healthcare and billing capabilities. In
addition, advanced mobile technologies document care plans and medications at
the time the therapy is administered. HAI also brings remote hosting
capabilities that lower the operating costs for these solutions.
“Research
into the specialty pharmacy market indicates the segment is growing at an
impressive 20% annual rate,” continued Mr. Mann. “These types of services are
becoming increasing popular as they allow therapies to be continued on an
outpatient basis to lower the overall cost of care. While cost
management is always a concern, medication safety remains our industry’s highest
priority and Mediware’s substantial medication management experience provides a
significant advantage over other vendors in the market.”
The ARI
acquisition adds an outsourcing business that manages reimbursement and
collections throughout the United States to Mediware’s product portfolio. This
provides the company with an additional recurring revenue stream as well as a
wealth of industry knowledge regarding reimbursement practices and changing
regulations. ARI will operate as a wholly owned subsidiary of
Mediware.
“These
are well run businesses, with excellent customer relationships and a proven
track record of success,” said Mr. Mann. “I’m very happy that we will retain all
employees and look forward to investing in growth for this market to become the
top vendor for solutions, service and customer satisfaction.”
Key
leaders for each business are being retained, including the group’s CEO, Ken
Pereira, and other operational leaders. Mr. Pereira will become a Mediware vice
president and general manager, leading the Company’s new Alternate Care
Solutions group.
The
acquisitions of HAI and ARI represent the fourth and fifth Mediware acquisitions
in 24 months. Mediware’s strategy is to acquire sound businesses with products
and services in or adjacent to the company’s core markets. Prior acquisitions
include:
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November
2007: Integrated Marketing Solutions provided donor recruitment
technologies to blood centers. IMS formed the basis for Mediware’s Blood
Center Technologies product group that provides integrated technology for
blood and plasma centers.
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November
2008: Hann’s On Software added to existing pharmacy management
capabilities with a robust medication management solution targeting
smaller healthcare organizations. HOS expanded Mediware into home health
technology solutions.
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June
2009: SciHealth added a powerful business intelligence solution used by
more than 100 hospitals. The Insight product, which allows hospitals to
create performance managing dashboards, launched a new product group for
the company as well as enhances the overall usability of Mediware’s other
software systems.
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About
Mediware
Mediware
delivers interoperable best of breed software systems that integrate with
electronic medical records to improve efficiencies and address safety concerns
to enable healthcare organizations to improve care processes while decreasing
costs. Core Mediware solutions include blood management technologies for
hospitals and blood centers; medication management solutions for hospitals,
behavioral health facilities, infusion and specialty pharmacy providers; and
business intelligence based performance management solutions for clinical,
regulatory and financial aspects of the broader healthcare market. For more
information about Mediware products and services, visit our web site at
www.mediware.com.
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Certain
statements in this press release may constitute "forward-looking" statements
within the meaning of the Private Securities Litigation Reform Act of 1995, as
the same may be amended from time to time (the "Act") and in releases made by
the SEC from time to time. Such forward-looking statements are not
based on historical facts and involve known and unknown risks, uncertainties and
other factors disclosed in the Company's Annual Report on Form 10-K for the year
ended June 30, 2007, which may cause the actual results of the Company to be
materially different from any future results expressed or implied by such
forward-looking statements. The Company disclaims any obligation to
update its forward-looking statements.