giant

Philips has strengthened its position in the Magnetic Resonance Imaging (MRI) market with the purchase of Intermagnetics in a deal valued at $1.3 billion. The Dutch electronics giant paid $27 a share for the New York-based maker of supercomputing magnets used in medical imaging, a premium of 29 percent over the current share price.

- read this article from TheStreet.com

Tech giant IBM said it will provide pandemic planning consulting services to clients. Big Blue will focus on continuity planning, developing strategies that help clients decide which business functions should remain operational during a pandemic and contingency plans that will allow employees to work remotely from home for the duration of a severe outbreak. IBM's pandemic-only services will cost clients between $10,000 and $150,000, according to sources within the company. Various …

In the latest twist in the stock-option backdating story, UnitedHealth Group said that it may have to restate earnings for the past three years. That could cost the company as much as $286 million. Meanwhile, the health services giant admits in a regulatory filing that it is the object of an "informal" SEC probe into its stock option granting processes. UnitedHealth shares fell $1.70 to $44.47 in morning trading.

- read this The Wall Street Journal article (sub. req.)

CareFirst is "crushing the economic life out of medical practice," says one angry critic. In Maryland, tempers flared after CareFirst BlueCross BlueShield announced reimbursement cuts. The Maryland State Medical Society--known in the state as MedChi--is protesting and calling on attorney general Mike Joseph Currant to investigate how CareFirst and UnitedHealth set prices. A CareFirst spokesman responds, "set fee schedules for our providers that are fair, reasonable and competitive." Not …

The tech press went into a minor feeding frenzy after a journalist discovered what appeared to be a demo of an early version of Google's new health service on one of the company's servers. The resulting screenshots give an idea of the direction the search engine giant may be heading with its new service, writes ZDNet's Garrett Rogers. The new service looks as though it will allow users to refine searches on specific symptoms and conditions, offering new options that allow surfers …

In a long-expected development, New Jersey-based pharmacy benefits manager giant Medco said it has reached a settlement with the Justice Department in a case involving three year old fraud charges against the drug distributor. Medco will pay the feds $163 million to settle the case, which was triggered by accusations by three employees at a Las Vegas distribution center who claimed the company routinely underfilled prescriptions, changed doctor's orders and canceled them completely in …

A new venture founded by Boston giant Partners is focused on implementing a set of strategic programs studying delivery care to patients outside of the medical setting. The name, however, may have a touch of trouble distinguishing itself from efforts at Kaiser (HealthConnect) or in the U.K. (Connecting for Health). It's called the Connected Health Initiative. Article

Delphi Medical Systems is a 400 employee subsidiary of the bankrupt auto parts giant. But the company hopes that it can make some money by getting into the market using some of the technologies that its developed for autos in medical products. For example, its VitalPoint Home system reads a patient's vital signs using data collection methods used to track the vital statistics of vehicles. In addition, the IVantage infusion pump draws on electronic wiring Delphi uses in automotive parts. …

Kaiser Permanente reported weaker-than-expected numbers for 2005. The giant HMO said its net income was $1 billion, a sizable drop from $1.6 billion in 2004. Management says the drop reflects capital expenses associated with Kaiser Connect, the company's billion dollar IT infrastructure project, and to making changes at facilities to meet new state retrofitting requirements in California. The company said nationwide enrollment in the Kaiser Foundation Health Plan rose 2.5 percent, …

Johnson & Johnson elected not to raise its bid for Giant, making Boston Scientific the winner of the bidding war over the device manufacturer. Giant officially accepted the $27.2 billion deal this morning. Under the terms of the agreement, Boston Scientific agreed to sell off Guidant's vascular intervention and endovascular business to Abbott Laboratories to address a potential regulatory roadblock to the deal. The deal must still be approved by regulators.

- see this …