WebMD

Merger off between WebMD, HLTH

Dan Bowman — Tue, 21 Oct 2008 11:14:09 -0400

A merger that was announced in February between HLTH and WebMD will not take place. According to Modern Healthcare, HLTH already had an 84 percent ownership stake in WebMD, which will have $340 million in cash and investments, with no long-term debt. The main culprit in the merger's demise? The economy, according to Martin Wygod, board chairman for both WebMD and HLTH. "In the current economic environment, it is important for a growth company like WebMD not to be encumbered by $650 million in long-term debt that would be coming due in 18 to 36 months," he said in a written statement.

Under the terms of the initial agreement, WebMD was to receive $700 million in cash and investments, while HLTH would have reduced its shares in the website from 84 percent to 80 percent. HLTH has also had difficulty trying to sell second subsidiary, Porex, due to financing issues.

For more:
- check out this Modern Healthcare article
- here's an article on the initial agreement

Related Article:
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- see this article from Search Engine Journal

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AllScripts, WebMD Health surge forward

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The markets took note as AllScripts released first quarter numbers that show improvement in the company's software business. Revenue from software and related services nearly doubled to $28.3 million. Allscript's shares were up ten percent today, rising to $19.85 before showing signs of cooling. Despite some versions that suggest that earnings were below expectation, investors appear to be cheered by increased future earnings forecasts. AllScripts acquired A4Health Systems in January. The company provided the Emergency Department System which Midland Memorial Hospital announced it will purchase yesterday

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- see this article from Smart Money.com

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This week Dell will become the largest U.S. employer to mandate electronic medical records (EMRs) for employees, BusinessWeek reports. CEO Kevin Rollins is expected to announce an initiative at a healthcare forum in Tennessee today that will make 26,000 of the company's employees EMRs. The records will allow employees to track insurance and prescription data as well as medical information. Unlike earlier programs which have relied on employees to enter data, the new system will automatically capture data on test results and treatment. WebMD will provide the technology behind the employee records, which will technically be personal health records.

- see this article from BusinessWeek

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- see this BusinessWeek article