|
|
|
| |
|
|
|
WELL if we EVER decide to unite based on [2007-08-18]
what we have in common!!!
IF THIS CONCEPT ever gets off the ground, refuse any job that pays VBC -
unless of course THAT is how we are allowed to return reports in:
thepatientisa35yearoldmalewith...
The suits think they'll just train the next batch of scribes to get less for more work. SAY NO TO THIS - by never accepting the new job.
Or, don't complain if you DO accept it...
MTs and uniting [2008-02-05]
You will never be able to get all MTs to unite. It will never happen because everybody is so wishywashy about it. Afraid to lose their jobs maybe? What jobs? All US MTs are losing their jobs every day, little by little. Line counts are shrinking with no explanation. How about MT management, do they know? You know they aren't opening their mouth. They don't wanna lose their cushy jobs and will kissbutt when it comes to company officials who know nothing about transcription but think they do.Howlong will their jobs be around? Any company official cando a schedule, take sick calls,be the shoulder for an MT to cry on, and make customer service calls. Its a no-brainer. Management definitely is not standing up for MTs, lets see what happens when their turn comes.
VBC/MAKE A STAND [2007-10-15]
Something needs to be done with this...I made more money transcribing in the 80s than I do now, isn't that going backwards..WE NEED TO UNITE..maybe start AAMT or whatever they are called and let them know how we feel,..the idea about not accepting jobs that have VBC is a great one! Now, if we could just get everybody to do it....
ROFLMAO! Yeap, me too. [2007-05-26]
We as MTs need to unite on this one or next thing you know, we will not get paid for spaces either.
DocQment(TM) Ovation - MedQuist Launches Next-Generation [2006-07-07]
MOUNT LAUREL, N.J., June 29 /PRNewswire-FirstCall/ -- Today's healthcare providers face what appear to be several conflicting challenges in the area of dictation. Pressures to decrease costs and improve productivity must be weighed against the need to demonstrate compliance and increase physician choice and satisfaction. To help its customers meet these challenges, Medquist Inc. (Pink Sheets: MEDQ) has introduced DocQment(TM) Ovation, a Web-based, enterprise digital voice capture and transport solution.
Studies by the Healthcare Information and Management Systems Society (http://www.himss.org/) have shown that when considering the purchase of a new dictation system, providers value HIPAA compliance most highly, followed by Web-based, centralized administration and automatic document routing. Because Ovation is Web-based, it offers easy-to-use tools to manage documents, users and workflow from any computer with Internet access, creating numerous opportunities for productivity improvement. Physicians can select from a variety of options for capturing their dictation, including telephones, PDAs, and desktop computer-based dictation devices.
DocQment Ovation is our newest technology innovation developed in direct response to industry feedback and providers' interest in replacing previous- generation dictation systems, says Scott Bennett, MedQuist senior vice president of Sales and Marketing. An integral component of our growing technology portfolio, Ovation helps to provide an end-to-end solution from dictation to billing, including front-end and back-end speech recognition.
Document Ovation was specifically engineered to be compatible with MedQuist's previous-generation dictation stations, thus facilitating the retention and recruitment of transcriptionists, and making it easy for providers to upgrade with little or no physician retraining required. Deployed at the customer's location, Ovation provides an enterprise view that allows transcription supervisors to easily manage users, documents and voice files from a single dashboard instead of using multiple systems. Ovation's sophisticated configuration options enable administrators to easily track work and share resources in order to get the right document to the right Transcriptionist at the right time.
According to Emmy Weber, MedQuist vice president of Product Management, Breakthrough capabilities engineered into DocQment Ovation, like the ability to define the date that begins the aging process for documents (including admit date and date of discharge), give users better information at the point of dictation to improve workflow, accuracy and report routing.
With MedQuist's help, we configured DocQment Ovation around the way we do business, says Wanda Newton, HIM director at Maury Regional Healthcare System, a three-hospital system located in Tennessee. With Ovation, we are now managing our hospitals and departments more efficiently. We saw a 34 percent increase in productivity in the first two months of use of Ovation, a positive trend that we expect will continue.
Ovation is available for immediate installation. For more information, contact a local MedQuist representative or dial 1-877-489-1500 for sales assistance.
MedQuist, a member of the Philips Group of Companies, is a leading provider of clinical documentation workflow solutions in support of the electronic health record. MedQuist provides electronic medical transcription, health information and document management products and services, including digital dictation, speech recognition, Web-based transcription, electronic signature, medical coding, mobile dictation devices, and outsourcing services.
CBaySystems Introduces CBayFlo VoiceDirect [2006-07-07]
ANNAPOLIS, Md., July 6 /PRNewswire/ -- CBaySystems Services, Inc., one of the industry's fastest-growing providers of medical transcription solutions, today announced the general availability of CBayFlo VoiceDirect -- its own automated digital dictation and voice capture system.
Using CBayFlo VoiceDirect, everyone involved in the medical transcription process -- physicians, HIMs, and transcriptionists -- is able to take advantage of greater speed, quality and security, from capture, to review, to transcription, to approval, to records management and archiving.
At its core, CBayFlo VoiceDirect enables physicians to dictate into any digital recording device -- a PDA, tablet PC, desktop or phone -- and have it securely captured for transcription. Highly accurate, and featuring natural language processing, it eliminates the time and cost of manually transcribing recorded dictation.
With the introduction of CBayFlo VoiceDirect, hospitals who are dependent on expensive, proprietary dictation systems from Dictaphone, DVI, and Lanier can enjoy new freedom and flexibility. CBayFlo VoiceDirect incorporates the same features and quality at a significantly lower price. At the same time, it is built on an open technology platform that allows it to interface with legacy Dictaphone, DVI, Lanier and home-grown systems. This allows a smooth migration path (with zero training) as well as easy integration with other HIM systems.
By developing our own technology, we're able to seamlessly integrate the power of voice into every component of our CBayFlo platform, said Christopher Foley, President of CBaySystems Services. Our commitment to RD means we're no longer reliant on a third party system, and can deliver more of the benefits from this powerful technology -- and significant savings -- directly to our customers.
Some of the specific benefits of CBayFlo VoiceDirect include:
* High security and voice quality -- resulting in better quality records,
and easier workflow
* Compliance with the latest HIPAA regulations and technologies
* Customized/advanced reporting capabilities, through a secure web portal:
making it easy for HIMs to review and manage the entire workflow process
Part of a Comprehensive CBayFlo Technology Suite
CBayFlo VoiceDirect is just one of the components of the CBayFlo System -- a fully-integrated technology platform that manages medical transcription records at every stage of their lifecycle, from dictation and scheduling, through transcription, editing, web-based management, and long-term archiving.
Unlike other systems that force hospitals into a fixed process, CBayFlo is flexible and customizable to work the way you want to work. All processes and workflows can be configured to your exact business and information/reporting requirements.
Specific components of this powerful technology platform include:
* CBayFlo DocView: advanced document viewing/editing/reporting
* CBayFlo VoiceRecord: software for PDAs and digital recorders that allows voice to be uploaded to the web, and offloaded to a dictation server for transcription
* CBayFlo eDemographics: an HL7 interface engine to exchange data with other HIM and patient records
* CBayFlo Enterprise Document Manager: hospitals can manage and track the transcription process through a web-based portal
-- CBayFlo DocuTrack: real-time updates of the status of each record and file
-- CBayFlo DocView: document view/edit
-- CBayFlo E-signature: document e-sign
-- CBayFlo DocXchange: an HL7 compatible interface engine
As an ASP application (no additional hardware or software is required for the hospital to purchase), CBayFlo is extremely secure and reliable, with multiple levels of redundancy incorporated into its standard architecture.
The CBayFlo platform represents an important component of the WorldClass Advantage we deliver to our customers every day, noted Foley. By providing advanced technology, hospitals and physician practices can significantly reduce costs and save time -- allowing them to devote more resources to improving patient care.
MedQuist Announces Unaudited Financial Results, 6 Million in Operating Loss [2006-05-11]
MT. LAUREL, N.J.--(BUSINESS WIRE)--May 11, 2006--MedQuist Inc. (Pink Sheets: MEDQ.PK) announced today certain preliminary, partial and unaudited financial results, and provided updated information regarding previously-announced litigation and governmental investigations and proceedings. Once the Company completes the financial assessment and review of its billing practices disclosed in the Company's previous filings with the SEC, KPMG LLP, the Company's independent registered public accounting firm, will complete the audit the Company's financial statements. The Company is continuing the process of working toward becoming current in its periodic reports pursuant to the Securities Exchange Act of 1934. The Company's review of its current and prior period unaudited financial statements, as well as KPMG LLP's audits for those periods, may identify adjustments or reclassifications which may be reflected in the periods to which they relate. At this time, the Company cannot estimate the total costs of (i) the billing review, (ii) defense of the class action matters, (iii) the SEC investigation, and (iv) compliance with the Department of Justice investigation, all of which have been previously disclosed in either the Company's filings with the SEC or the Company's press releases. Accordingly, the only costs related to the defense of these matters that have been included in the results below are actual costs incurred through March 31, 2006 by the Company. Because the completion of the billing review and resolution of the litigation and governmental investigatory matters are pending, the Company is not certain whether any changes to the accounting treatment of any component of its consolidated financial statements will be required and, if any changes are necessary, whether any such changes would have a material impact on its current or prior period consolidated financial statements. Accordingly, the financial information set forth below is preliminary, unaudited, and subject to change based on the completion of the financial assessment and review of the Company's billing practices, resolution of the class action matters and governmental investigations and proceedings, and the completion of the review and/or audit of its financial statements, as appropriate.
The financial information and related narrative discussion set forth below is derived from the Company's internal books and records. The Company cautions investors not to place undue reliance on the financial information presented below. As a result of the developments described above and in the Company's previous SEC filings, the Company's financial statements have not been audited or reviewed by KPMG LLP, its independent registered public accounting firm. The financial information contained in this press release also has not been audited or reviewed by an independent registered public accounting firm. Such information is not a substitute for the information required to be reported in the Company's Forms 10-K and Forms 10-Q that have not yet been filed. There can be no assurance that the results of the billing review, and resolution of the litigation and governmental investigatory matters will not have a material adverse effect on the Company's revenue, results of operations and financial condition.
Legal Proceedings
Investigations and Proceedings Commenced by the SEC and the Department of Justice
As previously announced, the Securities and Exchange Commission (the SEC) is currently conducting a formal investigation of the Company. The Company will continue to fully cooperate with the SEC.
As previously announced, the Company received an administrative HIPAA subpoena for documents from the United States Attorney's Office for the District of Massachusetts on December 17, 2004. The subpoena sought information primarily about the Company's provision of medical transcription services to governmental and non-governmental customers. The information was requested in connection with a government investigation into whether Medquist and others violated federal laws in connection with the provision of medical transcription services. MedQuist continues to cooperate fully with the Department of Justice.
Shareholder Securities Litigation
As previously announced, a shareholder putative class action lawsuit was filed against the Company in the United States District Court District of New Jersey on November 8, 2004. The action, entitled William Steiner v. MedQuist, Inc., et al., Case No. 1:04-cv-05487-FLW (the Shareholder Putative Action), was filed against the Company and certain former Company officials, purportedly on behalf of an alleged class of all persons who purchased MedQuist common stock during the period from April 23, 2002 through November 2, 2004, inclusive (the Class Period). The complaint specifically alleged that defendants violated federal securities laws by purportedly issuing a series of false and misleading statements to the market throughout the Class Period, which statements allegedly had the effect of artificially inflating the market price of the Company's securities. The complaint asserts claims under Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, thereunder. Named as defendants, in addition to the Company, were its former president and chief executive officer and its former executive vice president and chief financial officer.
On August 16, 2005, a First Amended Complaint in the Shareholder Putative Class Action was filed against the Company in the United States District Court District of New Jersey. The First Amended Complaint named additional defendants, including certain current and former directors, certain former Company officers, the Company's former and current external auditors and Koninklijke Philips Electronics N.V. (Philips). Like the original complaint, the First Amended Complaint asserted claims under Sections 10b and 20(a) of the Securities and Exchange Act of 1934 (the Act) and Rule 10b5 of the Act. The Class Period of the original complaint was expanded 20 months and now includes the period from March 29, 2000 through June 14, 2004. Pursuant to an October 17, 2005 consent order approved by the Court, Lead Plaintiff Greater Pennsylvania Pension Fund filed a Second Amended Complaint on November 15, 2005. The Second Amended Complaint dropped Philips as a defendant, but alleges the same claims and the same purported class period as the First Amended Complaint. Plaintiffs seek unspecified damages. Pursuant to the provisions of the Private Securities Litigation Reform Act, discovery in the action is stayed pending the filing and resolution of the defendants' motions to dismiss, which were filed on January 17, 2006, and will be fully briefed by May 26, 2006. The Court has not set a hearing date on the motions. The Company believes that the claims asserted in the Second Amended Complaint are without merit, and is vigorously defending the action.
Customer Litigation
As previously announced, a putative class action was filed in the United States District Court Central District of California. The action, entitled South Broward Hospital District, dba Memorial Regional Hospital, et al. v. MedQuist, Inc. et al., Case No. CV-04-7520-TJH-VBKx, was filed on September 9, 2004 against the Company and certain present and former Company officials, purportedly on behalf of an alleged class of non-Federal governmental hospitals and medical centers that the complaint claims were wrongfully and fraudulently overcharged for transcription services by defendants based primarily on the Company's use of the AAMT line billing unit of measure discussed below. The complaint charges fraud, violation of the California Business and Professions Code, unjust enrichment, conversion, negligent supervision and violation of the Racketeer Influenced and Corrupt Organizations Act. Plaintiffs seek damages in an unspecified amount, plus costs and interest, an injunction against alleged continuing illegal activities, an accounting, punitive damages and attorneys' fees. Named as defendants, in addition to the Company, were a senior vice president, its former executive vice president of marketing and new business development, its former executive vice president and chief legal officer, and its former executive vice president and chief financial officer.
On December 20, 2004, the Company and individual defendants filed motions to dismiss for lack of personal jurisdiction and improper venue, or in the alternative, to transfer the putative action to the United States District Court District of New Jersey. On February 2, 2005, plaintiffs filed a Second Amended Complaint both adding and deleting named plaintiffs in an attempt to keep the putative action in the United States District Court Central District of California. On March 30, 2005, the United States District Court Central District of California issued an order transferring the putative action to the United States District Court District of New Jersey.
On August 1, 2005, the Company and the individual defendants filed their respective Answers denying the material allegations contained in the Second Amended Complaint. On August 31, 2005, the Company and individual defendants filed motions to dismiss the Second Amended Complaint for failure to state a claim and a motion to dismiss in favor of arbitration, or in the alternative, to stay pending arbitration. On December 12, 2005, the plaintiffs filed an Amendment to the Second Amended Complaint. On December 13, 2005, the Court issued an order requiring plaintiffs to file a Third Amended Complaint.
Plaintiffs filed the Third Amended Complaint on January 4, 2006. The Third Amended Complaint expands the claims made beyond issues arising from contracts based on AAMT line billing and beyond customers billed based on an AAMT line, alleging that the Company engaged in a scheme to inflate customers' invoices without regard to the terms of individual contracts and even in the absence of any written contract. The Third Amended Complaint also limits plaintiffs' claim for fraud in the inducement of the agreement to arbitrate to the three named plaintiffs whose contracts contain an arbitration provision and a subclass of similarly situated customers. On January 20, 2006 the Company and individual defendants filed motions to dismiss the Third Amended Complaint for failure to state a claim and a motion to compel arbitration of all claims by the arbitration subclass and to stay the case in its entirety pending arbitration. On March 8, 2006 the Court held a hearing on these motions, and took the matter under submission. The Court has not yet ruled on the motions. The Company believes that the claims asserted have no merit and intends to vigorously defend the putative action.
Medical Transcriptionist Litigation
Hoffmann Putative Class Action
As previously announced, a putative class action lawsuit was filed against the Company in the United States District Court Northern District of Georgia. The action, entitled Brigitte Hoffmann, et al. v. MedQuist, Inc., et al., Case No. 1:04-CV-3452, was filed with the Court on November 29, 2004 against the Company and certain current and former Company officials, purportedly on behalf of an alleged class of current and former employees and statutory workers of MedQuist, who are or were compensated on a per line basis for medical transcription services (the Class Members) from January 1, 1998 to the time of the filing of the complaint (the Class Period). The complaint specifically alleged that defendants systematically and wrongfully underpaid the Class Members during the Class Period. The complaint asserted the following causes of action: fraud, breach of contract, demand for accounting, quantum meruit, unjust enrichment, conversion, negligence, negligent supervision, and Racketeer Influenced and Corrupt Organizations Act violations. Plaintiffs sought unspecified compensatory damages, punitive damages, disgorgement and restitution. On December 1, 2005, the Hoffmann matter was transferred to the United States District Court District of New Jersey. As discussed immediately below under the heading Myers Putative Class Action, the Company believes that the claims presently asserted have no merit and intends to vigorously defend the putative action.
Myers Putative Class Action
As previously announced, a putative class action entitled, Myers, et al. v. MedQuist Inc. and MedQuist Transcriptions, Ltd., Case No. 05CV 4608 (JBS), was filed against the Company on September 22, 2005 in the United States District Court District of New Jersey. The action was brought on behalf of a putative class of MedQuist's employee and independent contractor transcriptionists who claim that they contracted with the Company to be paid per AAMT line, but were allegedly underpaid due to intentional miscounting of the number of characters and lines transcribed. The named plaintiffs asserted claims for breach of contract, unjust enrichment, and request an accounting.
The allegations contained in the Myers case are substantially similar to those contained in the Hoffmann putative class action and the two actions have now been consolidated. A consolidated amended complaint was filed on January 31, 2006. The named plaintiffs assert claims for breach of contract, breach of the covenant of good faith and fair dealing, unjust enrichment and demand an accounting. On March 7, 2006 the Company filed a motion to dismiss all claims in the consolidated amended complaint. The motion has now been fully briefed. The Court has not set a hearing date on the motion. The Company believes that the claims asserted in the consolidated actions have no merit and intends to vigorously defend the suit.
Derivative Litigation
On October 4, 2005, the Company announced the dismissal with prejudice of a shareholder derivative action filed in United States District Court District of New Jersey. The suit, Rhoda Kanter (Plaintiff) v. Hans M. Barella et al. (Defendants), was filed on November 12, 2004 against Philips and ten current and former members of MedQuist's Board of Directors. MedQuist was named as a nominal defendant.
In a ruling dated September 21, 2005, the Court found Plaintiff's allegations that MedQuist's Board members breached their fiduciary duties to the Company to be insufficient. The Plaintiff had alleged that for a period from 2001 through 2004, the Defendants violated their fiduciary duties by permitting artificial inflation of billing figures; failing to adequately ensure accurate and lawful billing practices; and failing to accurately report the Company's true financial condition in its published financial statements. To the contrary, the Court concluded: Far from alleging facts supporting a substantial likelihood of liability, Plaintiff here has painted a picture of a board of directors that acted responsively given the circumstances . . . . On October 3, 2005, plaintiffs filed a motion for reconsideration of the Court's order dismissing the action with prejudice. On November 16, 2005, the Court denied Plaintiffs' motion for reconsideration. On December 13, 2005, Plaintiffs filed a Notice of Appeal with the United States Court of Appeals for the Third Circuit.
On March 21, 2006, Plaintiff filed her opening brief on appeal. On April 20, 2006, MedQuist and the other defendants filed their opposition briefs. The appeal will be fully briefed by May 4, 2006. The Court of Appeals has not set a hearing date for the appeal.
Customer Accommodations
As previously disclosed, the primary allegations in a number of the litigation matters relate to how the Company interpreted the AAMT line billing unit of measure. The AAMT line billing unit of measure was developed in 1993 through a collaboration among several industry organizations with the intent of providing standardization in industry billing practices. However, due to inherent ambiguities in the definition of this unit of measure not fully anticipated at the time of its introduction, AAMT line-based billing was applied inconsistently throughout the medical transcription industry and eventually renounced by the groups initially responsible for its development. Despite these issues, a number of companies in the industry have continued to use AAMT line-based billing, and some customers still request proposals and contracts based on the AAMT line.
Like many medical transcription service providers, MedQuist once used the AAMT line unit of measure to calculate invoices for many of its medical transcription clients. It has been widely recognized and well documented throughout the industry, however, that the AAMT definition of a line is inherently ambiguous and subject to a wide variety of interpretations. In fact, no single set of AAMT characters was ever defined for this unit of measure. Accordingly, MedQuist began the process in 2004 of transitioning its AAMT line-based customers off the AAMT line unit of measure and, in April 2005, the Company completely eliminated the use of the AAMT line for billing and called on other industry transcription providers to follow its lead.
Due to these AAMT line unit of measure ambiguities, and the disparity in its interpretation, health care providers have raised concerns regarding charges for transcription services by their respective transcription providers, including the Company. In response to those concerns, and to foster ongoing business relationships with its customers, the Company has approached certain customers and offered to resolve any issues related to their prior AAMT line and other billing related issues.
As previously disclosed, the Company's Board of Directors has authorized Company management to make accommodation offers, up to an aggregate amount of $65.0 million, to certain customers to resolve any concerns over AAMT and other billing related issues. As of March 31, 2006, (i) the Company has entered into agreements with certain customers who have accepted accommodation offers to resolve concerns over AAMT and other billing related issues, and paid or credited an aggregate amount of $31.3 million as an accommodation to those customers and (ii) additional accommodation offers have been made by the Company to certain other customers in the aggregate amount of $11.9 million. From April 1, 2006 through the date of this release, the Company has entered into agreements with additional customers and paid or credited an aggregate amount of $2.9 million and has extended accommodation offers to additional customers in the aggregate amount of $1.1 million. Company management currently intends to make additional accommodation offers in the future, consistent with the Board's authorization described above, although the timing and amount of such offers have not yet been determined and the Company's plans may change in the future. The accommodation offers do not represent an estimate of potential liability, if any, in any of the previously disclosed litigation or investigatory matters pending against the Company.
The Company is unable to predict how many customers, if any, will accept the outstanding accommodation offers on the terms proposed by the Company, nor is the Company able to predict the timing of the acceptance (or rejection) of any of these outstanding accommodation offers. Until such offers are accepted, the Company may withdraw or modify the terms of the accommodation offers at any time. In addition, the Company is unable to predict how many of the future offers, if made, will be accepted on the terms proposed by the Company. The Company believes that its existing cash resources and cash flows from operations are sufficient to fund all of the customer accommodation offers it may make.
By accepting the Company's accommodation offers, the customer must agree, among other things, to release the Company from any and all claims and liability regarding prior AAMT and other billing related issues. The accommodation offers made to date, and those offers which may be made in the future, are not an admission of liability by the Company of any wrongdoing or an admission or acknowledgement that its billing practices with respect to such customers were or are incorrect. MedQuist Inc. -- Preliminary and Unaudited Financial Information
(in millions)
----------------------------------------------------------------------
Three months ended
----------------------------------------
March 31, 2006 March 31, 2005
------------------ ------------------
Revenues $ 97 $ 108
Operating loss $ (8) $ (2)
----------------------------------------------------------------------
As of As of
March 31, 2006 December 31, 2005
------------------ ------------------
Cash $ 164 $ 178
Debt $ - $ -
Three Months Ended March 31, 2006
Revenues:
Preliminary, unaudited results indicate that the Company's revenues decreased $11 million to $97 million for the three months ended March 31, 2006 from approximately $108 million for the comparable 2005 period. This decline in revenues is largely due to decreases in transcription outsourcing services and product sales of $9 million or 10%, and $2 million or 27%, respectively. The decline in transcription outsourcing revenues is largely due to a decrease in the volume of lines transcribed primarily related to clients for whom we no longer provide transcription services. Additionally, pricing pressures continued on the base transcription business during the first quarter 2006, but revenues were impacted far less by pricing pressures than in the comparable 2005 period. Management expects that pricing pressures will continue for the foreseeable future but that the introduction of several new sales initiatives and improved customer service programs should cause transcription volume to stabilize or improve throughout the duration of 2006.
Operating Loss:
Preliminary, unaudited results indicate that our operating loss increased $6 million to a loss of approximately $8 million for the three months ended March 31, 2006 from an operating loss of $2 million for the comparable 2005 period. The operating loss of $8 million was primarily attributable to $9 million of costs associated with the following: (1) costs related to the ongoing billing review including (i) legal fees incurred in connection with governmental investigations and proceedings and defense of the class action matters and (ii) non-legal professional fees; and (2) increased expenses related to prior years' accounting reviews and audit. Operating loss was also impacted by the $11 million decline in revenues over the same period.
Balance Sheet Highlights:
As of March 31, 2006, the Company had $164 million in cash and cash equivalents and no debt. The $14 million decrease in cash as of March 31, 2006 compared with December 31, 2005 was primarily attributable to accommodation payments ($10 million) and capital expenditures ($4 million). There were no issuances of capital stock or other securities for the three months ended March 31, 2006.
The Company expects to incur significant costs and expenses in the future relating to the ongoing billing review, defense of the class action matters and governmental investigations and proceedings, and accommodation agreements. These costs and expenses include (i) legal fees relating to the SEC and Department of Justice investigations and proceedings, (ii) legal fees relating to defense and resolution of the litigation matters described above, (iii) customer accommodation payments and credits, and (iv) non-legal professional fees. The timing and level of these costs and expenses is, in many cases, not within the Company's control. While the Company is unable to predict the timing and level of these costs and expenses, the Company currently believes that it has sufficient resources, including cash on hand and cash flow from operations to fund these costs and expenses. However, there cannot be any assurance that unanticipated changes in the level of these costs will not exceed the Company's available cash resources, nor can there be any assurance that sufficient financing from external sources will be available to the Company on acceptable terms, if at all. In the event that the Company's cash requirements exceed its available cash resources, or if the timing of such costs and expenses requires the Company to divert cash resources away from operations, the Company may not be able to execute its operating plan, which could have a material adverse effect on the Company's business and results of operations.
Other Developments
Restructuring:
As previously disclosed, in conjunction with the Company's movement to a single national service and support organization, a restructuring plan was developed in 2005 to consolidate approximately forty-eight (48) operating facilities and centralize certain components of the business in order to improve operating efficiencies. The Company is expecting to incur total restructuring costs of up to $8.5 million associated with this plan through the end of the fourth quarter of 2006. The Company incurred $1 million of restructuring costs for the three months ended March 31, 2006. This restructuring is expected to generate annualized savings of approximately $18.5 million. The Company realized approximately $1.9 million in savings during the three months ended March 31, 2006. Specifically, the Company has shifted resources to a single national service delivery and support organization for all of the Company's services and products and is in the process of eliminating local service centers.
The plan does not contemplate reductions of, and the Company has no current intentions to reduce, its medical transcription workforce. Rather, the Company will continue in its efforts to hire additional qualified transcriptionists. Further, although the Company is consolidating its local service centers as described above, customer-facing teams, led by account managers, will continue to coordinate customer support on the local level. The customer-facing teams will continue to work with and be supported by the Company's centrally managed customer service organization.
Scribe Healthcare Technologies Exceeds 6,000 Users [2006-04-20]
Scribe Healthcare Technologies, a leading healthcare technology company based in the Chicago area, today announced growth has exceeded 6,000 users. Scribe platform users include physicians, clinicians, administrative personnel, and transcriptionists.
Lake Forest, IL (PRWEB) April 20, 2006 -- Scribe Healthcare Technologies, a leading healthcare technology company based in the Chicago area, today announced growth has exceeded 6,000 users. Scribe platform users include physicians, clinicians, administrative personnel, and transcriptionists.
“Until recently our growth has been primarily organic, selling to hospitals and profit driven medical practices. In 2005 we started targeting Medical Transcription Service Organizations (MTSOs) using our technology to run their businesses. Now with the launch of a joint venture “in2scribe”, we hope to become the foremost industry resource for MTSOs.” says Vice President of Sales Marketing, John Weiss. “As a result our growth rate continues to ramp.”
Scribe technologies are modular and Web-based, leveraging the Internet and standard Microsoft applications. Scribe offers a variety of technologies that help MTSO manage their business, recruit and train transcriptionists.
About Scribe Healthcare Technologies, Inc.Scribe Healthcare Technologies is a privately-held healthcare technology company based in the Chicago area. The company has developed a proprietary web-based platform that complements and extends the value for patient registration, Practice/Hospital Management and EMR Solutions. Scribe’s platform includes complete solutions for dictation, transcription, document management, EMR-Lite, Web portal, online prescriptions and reporting with data analytics.
Scribe serves more than 6,000 users. Business partners and resellers include consulting firms, transcription companies, and business process outsourcers. Additional information is available at www.scribe.com.
About in2scribeIn April 2005, the owners of Scribe Healthcare Technologies, EFD Transcription Services, and PENATCLE Electronic Records and Systems fulfilled their dream to create a network that would pull together resources to help to improve the efficiency, productivity, and profitability of the highly fragmented, mid-sized medical transcription firms.
Utilizing the talents and experience of our members, a common technology infrastructure, and a central management point, in2scribe offers a menu of services to our members including new profit centers, benefit plans, level-loading of your work load, and more. More information is available at www.in2scribe.com.
Transcend Services records Q1 profit [2006-04-20]
The Atlanta-based medical transcription technology company (NASDAQ: TRCR) had net income of $150,000 on $8 million in revenue, compared with net income of $12,000 on $5.3 million in revenue in the first quarter of 2005. Earnings were 2 cents a share, compared with break-even earnings in the first quarter of 2005.
The nearly $3 million increase in revenue is attributable to the acquisition of Medical Dictation Inc. in January 2005.
We are pleased to return to profitability after a difficult year in 2005, said Larry Gerdes, president and CEO. I am encouraged by both the improvement in our gross profit as a percentage of revenue and the results of our expense control initiatives. To grow our revenue 51 percent with only a 4 percent increase in other operating expenses shows that we can leverage our relatively fixed overhead costs as we grow.
Neurologist saves $12,000 per year on medical transcription [2006-02-22]
Recognition vs. Transcription
W. Palm Beach, FL neurologist saves $12,000 per year on medical transcription using state-of-the-art voice recognition software
[ClickPress, Tue Feb 21 2006] Dr. H. Steven Block, M.D. uses Dragon NaturallySpeaking Medical Edition, voice recognition software for medical professionals, to eliminate a very real business problem--medical transcription costs-- which six years ago, began topping the $1,000-a-month mark. Today, a doctor can easily spend three times that amount.
Very open about his high regard for the Dragon Medical VR product, Dr. Block had much to say about its place in his solo practice: “I purchased Dragon Medical from Eric Fishman’s company, Nuance, which is actually located in the same building as my practice, on the floor above me. Neurology is all about ‘nuance’, no pun intended. But ‘nuance’ is really the best word to describe the health effects of a neurological problem. It has been a major focus of my practice.”
“Very subtle neurological changes can have devastating health consequences. You have to be able to communicate those subtleties in order for a medical record to have any meaning.”
“I see some really sick patients. Using an on-the-spot note generation product like Dragon, instead of a transcription service, let’s me get back to the referring physician with a fast note, usually within 10 minutes of seeing the patient. That kind of speed in delivering a medical exam note with ‘nuance’ can mean a great deal to everyone involved. You see, I can’t type. I never learned how to type. My kids who grew up instant-messaging can type faster than I can speak. They don’t need Dragon. But for me, Dragon is a wonderful tool.”
Dr. Block, 49, is no stranger to high technology tools:
“There are only so many hours in the day,” he laughed, driving down the road, talking via wireless cell phone headset, “and I’m very detail-oriented. I couldn’t be without Dragon, quite frankly.” One word I did not hear from Dr. Block is the word “downtime”. It doesn’t seem to exist in his vocabulary.
Having traveled the long and winding upgrade path for both Dragon and laptop hardware, Dr. Block has watched and participated in the evolution of the product for six years. “Like a surfer looking for the perfect wave,” he joked. The improvement he’s seen in the most recent version of Dragon Medical—combined with a high-RAM laptop with at least 512MB—has boosted performance to an almost unbelievable 99.5% real time voice recognition accuracy level, according to his observations.
His advice to new users: “If you haven’t tried Dragon Medical in the last four years,” he said, “try it again, the way it is now, with the new speech engine. It uses mathematical models to analyze word groups. There is a learning curve, but the training is not that bad, consisting of you reading a 15 minute script into a microphone, then a little touch-up here and there.”
“Try a few charts each day, and sit down where it’s quiet, where you can relax and concentrate on your speaking habits. Tech support is great; they’ll help you, and be sure to read the help file “How to Speak to a Computer”—and the manual. Especially for often repeated phrases, the voice-actuated “macros” are great, a real time-saver. It’s well-worth the time you invest in learning how to use this tool.”
What are the pitfalls? “Mumbling,” says Dr. Block, “that’s the main problem. Doctors are used to dictating in a low, monotone mumble, as fast as they can. A person might be able to handle it by going back and listening to the recording again and again. But for voice recognition, doctors need to speak in a normal, conversational tone of voice, just like we are doing right now. Speak normally, and Dragon has no problem, it works very well. It’s really quite simple.”
He stated that using a handheld Sony digital voice recorder with removable memory stick allows him to dictate anywhere, anytime, then later, “feed” the sound file to Dragon, achieving about 98% voice recognition accuracy. (Please note: If you are considering making a recording for later voice recognition by Dragon, be sure and use 16-bit resolution .avi format, or Dragon won’t even try to “digest” it. It won’t bother with a recording of poor quality, because the end result would be useless.)
Although he is considering it, Dr. Block has not yet adopted a commercial EMR(Electronic Medical Records) software system for his medical records, mainly because of concerns about interoperability standards. (Coming soon to an EMR near you.)
However, by using Dragon Medical as his “front-end” for the creation of detailed paper medical records, email reports, and digital-FAX messages, Dr. Block not only uses computers, but has also created a highly personal and expressive way to “chart” a patient, unmatched in detail, depth, and the “human touch” by out-of-the-box EMR software.
Would EMR software developers do well to discuss with this doctor any design plans for a voice-controlled, voice-recognition-based EMR program? I think so. Will a “hands-free” EMR workstation which responds to voice commands--as does the entire Dragon program--ever be used to help maintain a “sterile field” in the medical environment of the future? It certainly worked well on the Starship Enterprise, didn’t it?
Transcend acquires California company's transcription biz [2006-01-31]
Transcend Service Inc. has bought PracticeXpert Inc.'s transcription business.
Under the terms of the agreement with Transcend, PracticeXpert will receive up to $500,000, over three years, on an earn-out basis, with an initial $40,000 payment on closing.
Atlanta-based Transcend (NASDAQ: TRCR - News) provides medical transcription services to health systems, hospitals, clinics and physician practices. Calabasas, Calif.-based PracticeXpert (OTC BB: PXPT - News) provides medical billing, accounts receivable management, practice management, consulting, seminars, practice management software, electronic medical records software and related services.
CBay Awarded Multi-Year Contract [2006-01-19]
ANNAPOLIS, Md., Jan. 18 /PRNewswire/ -- CBay Systems announced today thatit was awarded a contract by Premier Inc. to provide integrated dictationcapture, transcription and web-based document management solutions to itsmember healthcare facilities. Under the terms of the agreement, CBay is theapproved provider to Premier's alliance of approximately 1,500 hospitals andhealthcare systems across the United States. A leading provider of healthcare technology and business processoutsourcing (BPO) services, CBay addresses various issues in the healthcaresector, primarily focusing on transcription process improvement andreceivables management. By leveraging HIPAA-compliant Internet technologiesand highly credentialed global resources, CBay delivers measurableefficiencies and savings to hundreds of hospitals, clinics and physiciangroups. A selection committee at Premier evaluated numerous medical transcriptionservice organizations from across the country and determined that CBay'ssolutions were the right choice for its members. CBay is very excited about this opportunity to provide medicaltranscription services to Premier's member hospitals, said Michael Kimball,CBay's senior vice president of sales and marketing. We offer the ideal blendof service, experience, technology, and value to ensure that Premier's membersreceive timely and accurate medical documentation to help them provide thebest patient care.
The Top 10 Reasons to Become a Medical Transcriptionist [2006-01-19]
January 17th 2006Work From Home You've seen the commercials: medical transcriptionists are in high demand. Should you consider this field? Below are the top ten best reasons to become a medical transcriptionist. If these characteristics are something you're looking for in a job, then medical transcription may be for you. To get started, try “Working at Home the American Way in Medical Transcription” by Debra Jan Hebert, an experienced (http://medtrans4u.com) medical transcriptionist.
10. Quick entryMany lucrative professions require extensive training and advanced degrees. Other jobs in the medical field can take eight or more years of grueling, expensive schooling to begin. In medical transcription, you can begin your work in a year or less, avoiding huge debts and student loans. Some employers require no training, especially not if you already have good English skills and some experience in a medical field.
9. Contribute to societyAs a medical transcriptionist, you can contribute to society in many ways. In addition to the economic contributions you'll make to the overall economy, experienced medical transcriptionists become well-versed enough to catch errors or even act as patient advocates. Medical transcriptionists can see inconsistencies and correct them as well. By quickly returning transcripts to hospitals, private practices and individual doctors, medical transcriptionists can ensure fast patient care in the medical system.
8. Work from homeWhile the Bureau of Labor Statistics reports that 70% of medical transcriptionists still work in hospitals or physicians' offices, medical transcription is becoming increasingly popular as a work-from-home profession. The convenience of a home office appeals to some people on its own virtues, while parents may value the opportunity to stay close to their young children and still support the family full time. No matter what the reason, if you're looking to work from home, you should seriously consider medical transcription.
7. Excellent payWhile compensation methods may vary, almost all medical transcriptionists enjoy excellent pay, even in entry-level positions. According to (http://medtrans4u.com) DJS Enterprises, you can earn as much as $50,000 to $80,000 a year as a medical transcriptionist. If your pay is production-based, as you gain more experience and dexterity in medical transcription your salary will steadily increase. If you're looking for a job that can really support your family working from home, medical transcription may be for you.
6. Job securityThe US Bureau of Labor Statistics reports that the job outlook for medical transcriptionists is definitely positive. The medical transcription field is expected to grow at a faster than average rate through the year 2014. This indicates that medical transcriptionists will have plenty of opportunities to find steady work, even if they work at home on a freelance basis for at least another 8 years.
5. Job satisfactionWhile job satisfaction may vary from job to job and person to person, if you enjoy being able to visibly track the progress you've made in a day, medical transcription can bring you a high level of job satisfaction. As your completed medical reports pile up, you'll be able to see how much you've accomplished.
4. Set your own hoursMost of the medical industry operates 24 hours a day. Many hospital and at-home medical transcriptionists are able to set their own hours at any time to accommodate their families or other commitments. No matter when you're able to work, there's a medical record waiting to be transcribed. In medical transcription, you can work when it's most convenient for you.
3. Comfortable work environmentWhether they work in a hospital, a private office or from home, medical transcriptionists enjoy a comfortable work environment. Noise levels are low, safety risks are minimal and strenuous labor is negligible. In medical transcription, you'll enjoy a comfortable office and dedicated work station to transcribe. And what could be more comfortable than working in your own home?
2. Transferable skillsMedical transcriptionists acquire many transferable skills that they can use in other jobs if ever they want to leave the industry. In addition to a basis in the medical field, transcriptionists learn skills that could apply as a court reporter or an administrative assistant. Transcriptionists also develop their English skills, which can be useful in all types of positions that involve writing and editing. Whether medical transcription is a step on your path or your dream job, the skills you learn can improve your overall career outlook.
1. Rewarding workWhy do people become doctors? The vast majority of the people who endure 8 or more years of schooling and incur substantial debts and student loans to become doctors do so because they love to help people and to cure them of their illnesses. Every member of the medical field helps in this endeavor. What could be more rewarding than to contribute to the speedy treatment of people who desperately need your help?
If these ten things sound like characteristics you're looking for in a job, look into medical transcription. You can learn more about medical transcription from books, the Bureau of Labor Statistics and other materials online.
MedQuist Announces Preliminary, Partial and Unaudited [2006-01-19]
MT. LAUREL, N.J. --(Business Wire)-- Jan. 19, 2006 -- Medquist Inc. (Pink Sheets: MEDQ.PK) announced today certain preliminary, partial and unaudited financial results, and provided updated information regarding previously-announced litigation and governmental investigations and proceedings. Once the Company completes the financial assessment and review of its billing practices disclosed in the Company's previous filings with the SEC, the Company expects that KPMG LLP, its independent registered public accounting firm, will review and/or audit the Company's financial statements, as appropriate. The Company is continuing the process of working toward becoming current in its periodic reports pursuant to the Securities Exchange Act of 1934. The Company's review of its current and prior period unaudited financial statements, as well as KPMG LLP's audits for those periods, may identify adjustments or reclassifications which may be reflected in the periods to which they relate. At this time, the Company cannot estimate the total costs of (i) the billing review, (ii) defense of the class action matters, (iii) the SEC investigation, and (iv) compliance with the Department of Justice investigation, all of which have been previously disclosed in either the Company's filings with the SEC or the Company's press releases. Accordingly, the only costs related to the defense of these matters that have been included in the results below are actual costs incurred through December 31, 2005 by the Company. As described in the Customer Accommodations discussion under the heading Legal Proceedings, an accrual has been made in an amount up to which the Company's Board of Directors has authorized the Company to make accommodation offers to certain of its customers. Because the completion of the billing review and resolution of the litigation and governmental investigatory matters are pending, the Company is not certain whether any changes to the accounting treatment of any component of its consolidated financial statements will be required and, if any changes are necessary, whether any such changes would have a material impact on its current or prior period consolidated financial statements. Accordingly, the financial information set forth below is preliminary, unaudited, and subject to change based on the completion of the financial assessment and review of the Company's billing practices, resolution of the class action matters and governmental investigations and proceedings, and the completion of the review and/or audit of its financial statements, as appropriate.
The financial information and related narrative discussion set forth below is derived from the Company's internal books and records. The Company cautions investors not to place undue reliance on the financial information presented below. As a result of the developments described above and in the Company's previous SEC filings, the Company's financial statements have not been audited or reviewed by KPMG LLP, its independent registered public accounting firm. The financial information contained in this press release also has not been audited or reviewed by an independent registered public accounting firm. Such information is not a substitute for the information required to be reported in the Company's Forms 10-K and Forms 10-Q that have not yet been filed. There can be no assurance that the results of the billing review, and resolution of the litigation and governmental investigatory matters will not have a material adverse effect on the Company's revenue, results of operations and financial condition. Legal Proceedings Investigations and Proceedings Commenced by the SEC and the Department of Justice As previously announced, the Securities and Exchange Commission (the SEC) is currently conducting a formal investigation of the Company. The Company will continue to fully cooperate with the SEC. As previously announced, the Company received an administrative HIPAA subpoena for documents from the United States Attorney's Office for the District of Massachusetts on December 17, 2004. The subpoena sought information primarily about the Company's provision of medical transcription services to governmental and non-governmental customers. The information was requested in connection with a government investigation into whether MedQuist and others violated federal laws in connection with the provision of medical transcription services. MedQuist continues to cooperate fully with the Department of Justice. Shareholder Securities Litigation As previously announced, a shareholder putative class action lawsuit was filed against the Company in the United States District Court District of New Jersey on November 8, 2004. The action, entitled William Steiner v. MedQuist, Inc., et al., Case No. 1:04-cv-05487-FLW (the Shareholder Putative Action), was filed against the Company and certain former Company officials, purportedly on behalf of an alleged class of all persons who purchased MedQuist common stock during the period from April 23, 2002 through November 2, 2004, inclusive (the Class Period). The complaint specifically alleged that defendants violated federal securities laws by purportedly issuing a series of false and misleading statements to the market throughout the Class Period, which statements allegedly had the effect of artificially inflating the market price of the Company's securities. The complaint asserts claims under Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, thereunder. Named as defendants, in addition to the Company, were its former president and chief executive officer and its former executive vice president and chief financial officer. On August 16, 2005, a First Amended Complaint in the Shareholder Putative Class Action was filed against the Company in the United States District Court District of New Jersey. The First Amended Complaint named additional defendants, including certain current and former directors, certain former Company officers, the Company's former and current external auditors and Koninklijke Philips Electronics N.V. (Philips). Like the original complaint, the First Amended Complaint asserted claims under Sections 10b and 20(a) of the Securities and Exchange Act of 1934 (the Act) and Rule 10b5 of the Act. The Class Period of the original complaint was expanded 20 months and now includes the period from March 29, 2000 through June 14, 2004. Pursuant to an October 17, 2005 consent order approved by the Court, Lead Plaintiff Greater Pennsylvania Pension Fund filed a Second Amended Complaint on November 15, 2005. The Second Amended Complaint dropped Philips as a defendant, but alleges the same claims and the same purported class period as the First Amended Complaint. Plaintiffs seek unspecified damages. Pursuant to the provisions of the Private Securities Litigation Reform Act, discovery in the action is stayed pending the filing and resolution of the defendants' motions to dismiss, which were filed on January 17, 2006, and will be fully briefed by May 1, 2006. The Company believes that the claims asserted in the Second Amended Complaint are without merit, and is vigorously defending the action. Customer Litigation As previously announced, a putative class action was filed in the United States District Court Central District of California. The action, entitled South Broward Hospital District, dba Memorial Regional Hospital, et al. v. MedQuist, Inc. et al., Case No. CV-04-7520-TJH-VBKx, was filed on September 9, 2004 against the Company and certain present and former Company officials, purportedly on behalf of an alleged class of non-Federal governmental hospitals and medical centers that the complaint claims were wrongfully and fraudulently overcharged for transcription services by defendants based primarily on the Company's use of the AAMT line billing unit of measure discussed below. The complaint charges fraud, violation of the California Business and Professions Code, unjust enrichment, conversion, negligent supervision and violation of the Racketeer Influenced and Corrupt Organizations Act. Plaintiffs seek damages in an unspecified amount, plus costs and interest, an injunction against alleged continuing illegal activities, an accounting, punitive damages and attorneys' fees. Named as defendants, in addition to the Company, were a senior vice president, its former executive vice president of marketing and new business development, its former executive vice president and chief legal officer, and its former executive vice president and chief financial officer. On December 20, 2004, the Company and individual defendants filed motions to dismiss for lack of personal jurisdiction and improper venue, or in the alternative, to transfer the putative action to the United States District Court District of New Jersey. On February 2, 2005, plaintiffs filed a Second Amended Complaint both adding and deleting named plaintiffs in an attempt to keep the putative action in the United States District Court Central District of California. On March 30, 2005, the United States District Court Central District of California issued an order transferring the putative action to the United States District Court District of New Jersey. On August 1, 2005, the Company and the individual defendants filed their respective Answers denying the material allegations contained in the Second Amended Complaint. On August 31, 2005, the Company and individual defendants filed motions to dismiss the Second Amended Complaint for failure to state a claim and a motion to dismiss in favor of arbitration, or in the alternative, to stay pending arbitration. On December 12, 2005, the plaintiffs filed an Amendment to the Second Amended Complaint. On December 13, 2005, the Court issued an order requiring plaintiffs to file a Third Amended Complaint and set forth a briefing schedule for the filing of anticipated motions to dismiss the Third Amended Complaint, which have been set for hearing on March 8, 2006. Plaintiffs filed the Third Amended Complaint on January 4, 2006. The Third Amended Complaint expands the claims made beyond issues arising from contracts based on AAMT line billing and beyond customers billed based on an AAMT line, alleging that the Company engaged in a scheme to inflate customers' invoices without regard to the terms of individual contracts and even in the absence of any written contract. The Third Amended Complaint also limits plaintiffs' claim for fraud in the inducement of the agreement to arbitrate to the three named plaintiffs whose contracts contain an arbitration provision and a subclass of similarly situated customers. The Company believes that the claims asserted have no merit and intends to vigorously defend the putative action. Medical Transcriptionist Litigation Hoffmann Putative Class Action As previously announced, a putative class action lawsuit was filed against the Company in the United States District Court Northern District of Georgia. The action, entitled Brigitte Hoffmann, et al. v. MedQuist, Inc., et al., Case No. 1:04-CV-3452, was filed with the Court on November 29, 2004 against the Company and certain current and former Company officials, purportedly on behalf of an alleged class of current and former employees and statutory workers of MedQuist, who are or were compensated on a per line basis for medical transcription services (the Class Members) from January 1, 1998 to the time of the filing of the complaint (the Class Period). The complaint specifically alleged that defendants systematically and wrongfully underpaid the Class Members during the Class Period. The complaint asserted the following causes of action: fraud, breach of contract, demand for accounting, quantum meruit, unjust enrichment, conversion, negligence, negligent supervision, and Racketeer Influenced and Corrupt Organizations Act violations. Plaintiffs seek unspecified compensatory damages, punitive damages, disgorgement and restitution. On December 1, 2005, the Hoffmann matter was transferred to the United States District Court District of New Jersey. The Company believes that the claims presently asserted have no merit and intends to vigorously defend the putative action. Myers Putative Class Action As previously announced, a putative class action entitled, Myers, et al. v. MedQuist Inc. and MedQuist Transcriptions, Ltd., Case No. 05CV 4608 (JBS), was filed against the Company on September 22, 2005 in the United States District Court District of New Jersey. The action was brought on behalf of a putative class of MedQuist's employee and independent contractor transcriptionists who claim that they contracted with the Company to be paid per AAMT line, but were allegedly underpaid due to intentional miscounting of the number of characters and lines transcribed. The named plaintiffs assert claims for breach of contract, unjust enrichment, and request an accounting. The allegations contained in the Myers case are substantially similar to those contained in the Hoffmann putative class action and the two actions have now been consolidated. On January 3, 2006, a consent order was executed pursuant to which the Hoffmann and Myers plaintiffs will file a single, consolidated class action complaint on or before January 31, 2006. As with the Hoffmann putative class action, the Company believes that the claims presently asserted in the Myers action have no merit and intends to vigorously defend the consolidated actions. Derivative Litigation On October 4, 2005, the Company announced the dismissal with prejudice of a shareholder derivative action filed in United States District Court District of New Jersey. The suit, Rhoda Kanter (Plaintiff) v. Hans M. Barella et al. (Defendants), was filed on November 12, 2004 against Philips and ten current and former members of MedQuist's Board of Directors. MedQuist was named as a nominal defendant. In a ruling dated September 21, 2005, the Court found Plaintiff's allegations that MedQuist's Board members breached their fiduciary duties to the Company to be insufficient. The Plaintiff had alleged that for a period from 2001 through 2004, the Defendants violated their fiduciary duties by permitting artificial inflation of billing figures; failing to adequately ensure accurate and lawful billing practices; and failing to accurately report the Company's true financial condition in its published financial statements. To the contrary, the Court concluded: Far from alleging facts supporting a substantial likelihood of liability, Plaintiff here has painted a picture of a board of directors that acted responsively given the circumstances . . . . On October 3, 2005, plaintiffs filed a motion for reconsideration of the Court's order dismissing the action with prejudice. On November 16, 2005, the Court denied Plaintiffs' motion for reconsideration. On December 13, 2005, Plaintiffs filed a Notice of Appeal with the United States Court of Appeals for the Third Circuit. Customer Accommodations The primary allegations in a number of the litigation matters relate to how the Company interpreted the AAMT line billing unit of measure. The AAMT line billing unit of measure was developed in 1993 through a collaboration among several industry organizations with the intent of providing standardization in industry billing practices. However, due to inherent ambiguities in the definition of this unit of measure not fully anticipated at the time of its introduction, AAMT line-based billing was applied inconsistently throughout the medical transcription industry and eventually renounced by the groups initially responsible for its development. Despite these issues, a number of companies in the industry have continued to use AAMT line-based billing, and some customers still request proposals and contracts based on the AAMT line. Like many medical transcription service providers, MedQuist once used the AAMT line unit of measure to calculate invoices for many of its medical transcription clients. It has been widely recognized and well documented throughout the industry, however, that the AAMT definition of a line is inherently ambiguous and subject to a wide variety of interpretations. In fact, no single set of AAMT characters was ever defined for this unit of measure. Accordingly, MedQuist began the process in 2004 of transitioning its AAMT line-based customers off the AAMT line unit of measure and, in April 2005, the Company completely eliminated the use of the AAMT line for billing and called on other industry transcription providers to follow its lead. Due to these AAMT line unit of measure ambiguities, and the disparity in its interpretation, health care providers have raised concerns regarding charges for transcription services by their respective transcription providers, including the Company. In response to those concerns, and to foster ongoing business relationships with its customers, the Company has approached certain customers and offered to resolve any issues related to their prior AAMT line and other billing related issues. The Company's Board of Directors has authorized Company management to make accommodation offers, up to an aggregate amount of $65.0 million, to certain customers to resolve concerns over AAMT and other billing related issues. As of December 31, 2005, (i) the Company has entered into agreements with certain customers who have accepted accommodation offers to resolve concerns over AAMT and other billing related issues, and paid or credited an aggregate amount of $20.5 million as an accommodation to those customers and (ii) additional accommodation offers have been made by the Company to certain other customers in the aggregate amount of $13.8 million. From January 1, 2006 through the date of this release, accommodation offers have been made to additional customers in the aggregate amount of $1.7 million. Subject to the previously mentioned authorization of the Company's Board of Directors, Company management currently intends to make additional accommodation offers in the future, although the timing and amount of such offers have not yet been determined and the Company's plans may change in the future. The accommodation offers do not represent in any way the Company's estimate of potential liability, if any, in any of the previously disclosed litigation or investigatory matters pending against the Company. The Company is unable to predict how many customers, if any, will accept the outstanding accommodation offers on the terms proposed by the Company, nor is the Company able to predict the timing of the acceptance (or rejection) of any of these outstanding accommodation offers. Until such offers are accepted, the Company may withdraw or modify the terms of the accommodation offers at any time. In addition, the Company is unable to predict how many of the future offers, if made, will be accepted on the terms proposed by the Company. The Company believes that its existing cash resources and cash flows from operations are sufficient to fund all of the customer accommodation offers it may make. By accepting the Company's accommodation offers, the customer must agree, among other things, to release the Company from any and all claims and liability regarding prior AAMT and other billing related issues. The accommodation offers made to date, and those offers which may be made in the future, are not an admission of liability by the Company of any wrongdoing or an admission or acknowledgement that its billing practices with respect to such customers were or are incorrect. -0- *T MedQuist Inc. - Preliminary and Unaudited Financial Information (in millions) ---------------------------------------------------------------------- Three months ended ----------------------------------- 12/31/2005 12/31/2004 ---------------- ---------------- Revenues (1) $ 96 $ 112 Operating loss (1) $ (78) $ 0 Cash (2) $ 178 $ 196 Debt (2) - Current $ 0 $ 25 - Long term $ 0 $ 0 Twelve months ended ----------------------------------- 12/31/2005 12/31/2004 ---------------- ---------------- Revenues (3) $ 411 $ 456 Operating (loss)income (3) $ (98) $ 25 Cash (2) $ 178 $ 196 Debt (2) - Current $ 0 $ 25 - Long term $ 0 $ 0 ---------------------------------------------------------------------- Notes: (1) Information presented for the three months ended (2) Information presented as of the date noted above (3) Information presented for the twelve months ended *T Three months ended December 31, 2005 Revenues: Preliminary, unaudited results indicate that the Company's revenues decreased from approximately $112 million for the three months ended December 31, 2004 to approximately $96 million for the comparable 2005 period. The decline in revenues is largely due to a decrease in the volume of lines transcribed primarily related to clients for whom we no longer provide transcription services. Additionally, while pricing pressures continue on the base transcription business, the pricing pressure has not had as great an impact on revenues during the second half of 2005 as it did in the first half. Management expects that pricing pressure will continue for the foreseeable future but that the introduction of several new sales and improved customer service initiatives will cause transcription volume to stabilize or improve in 2006. Operating Income: Preliminary results indicate that operating income declined $78 million from approximately $0 million for the three months ended December 31, 2004 to an operating loss of approximately $78 million for the comparable 2005 period. The operating loss was attributable to the following: restructuring charges ($4 million), audit fees in connection with the Company's 2003, 2004 and 2005 fiscal years ($4 million), asset impairments ($2 million) and $69 million in costs incurred during the three months ended December 31, 2005 related to the ongoing billing review, including: (i) customer accommodation payments and accruals ($60 million), (ii) legal fees incurred in connection with governmental investigations and proceedings and defense of the class action matters, and (iii) non-legal professional fees. Operating income in 2005 was also impacted by the $16 million decline in revenues over the same period. Fiscal 2004 results reflect $6 million in costs related to the ongoing billing review. Twelve Months ended December 31, 2005 Revenues: Preliminary, unaudited results indicate that the Company's revenues decreased from approximately $456 million for the twelve months ended December 31, 2004 to approximately $411 million for the comparable 2005 period. The decline in revenues is due to (i) a decrease in the volume of lines transcribed primarily related to clients for whom we no longer provide transcription services and (ii) reductions in transcription service rates due to pricing pressure in the medical transcription industry. Management expects that pricing pressure will continue for the foreseeable future but that the introduction of several new sales and improved customer service initiatives will cause transcription volume to stabilize or improve in 2006. Operating Income: Preliminary, unaudited results indicate that operating income declined $123 million from an operating income of approximately $25 million for the twelve months ended December 31, 2004 to an operating loss of approximately $98 million for 2005. The operating loss was attributable to the following: restructuring charges ($4 million), audit fees in connection with the Company's 2003, 2004 and 2005 fiscal years ($4 million), asset impairments ($2 million) and $101 million in costs incurred in 2005 related to the ongoing billing review, including: (i) customer accommodation payments and accruals ($65 million), (ii) legal fees incurred in connection with governmental investigations and proceedings and defense of the class action matters, (iii) non-legal professional fees, and (iv) costs associated with separation and replacement of the Company's management team, including members at the executive level. Operating income in 2005 was also impacted by the $44 million decline in revenues over the comparable period, which represents the impact of both the pricing pressures experienced most strongly in the first six months of 2005 and of volume declines throughout the twelve months ended December 31, 2005. Fiscal 2004 results reflect $15 million in costs related to the ongoing billing review. Balance Sheet Highlights: At December 31, 2005, the Company had $178 million in cash and cash equivalents and no debt. There were no additional issuances of capital stock or other securities for the twelve months ended December 31, 2005. The Company expects to incur significant costs and expenses in the future relating to the ongoing billing review, defense of the class action matters and governmental investigations and proceedings, and accommodation agreements. These costs and expenses include (i) legal fees relating to the SEC and Department of Justice investigations and proceedings, (ii) legal fees relating to defense and resolution of the litigation matters described above, (iii) customer accommodation payments and credits, and (iv) non-legal professional fees. The timing and level of these costs and expenses is, in many cases, not within the Company's control. While the Company is unable to predict the timing and level of these costs and expenses, the Company currently believes that it has sufficient resources, including cash on hand and cash flow from operations to fund these costs and expenses. However, there can be no assurance that unanticipated changes in the level of these costs will not exceed the Company's available cash resources, nor can there be any assurance that sufficient financing from external sources will be available to the Company on acceptable terms, if at all. In the event that the Company's cash requirements exceed its available cash resources, or if the timing of such costs and expenses requires the Company to divert cash resources away from operations, the Company may not be able to execute its operating plan, which could have a material adverse effect on the Company's business and results of operations. Other Developments Restructuring: As previously disclosed, in conjunction with the Company's movement to a single national service and support organization, a restructuring plan has been developed which consolidates approximately forty-eight (48) facilities and centralizes certain components of the business. The Company is expecting to incur restructure costs associated with this restructuring plan of up to $8.5 million and the restructuring is expected to generate annualized savings of approximately $18.5 million. Specifically, MedQuist has shifted resources to a single national service delivery and support organization for all of the Company's services and products, eliminating local service centers. This transition has resulted in the consolidation of approximately thirty-eight (38) facilities as of December 31, 2005, with ten (10) more scheduled over the next six months. The plan does not contemplate reductions of, and the Company has no current intentions to reduce, its medical transcription workforce. Rather, the Company will continue in its efforts to hire additional qualified transcriptionists. Further, although the Company is consolidating its local service centers as described above, customer-facing teams, led by account managers, will continue to coordinate customer support on the local level. The customer-facing teams will work with and be supported by the Company's centrally managed customer service organization.
Spheris to Acquire Vianeta Communications [2005-12-21]
Integrating Vianeta's open and scalable XML-based software into Spheris'existing medical transcription technology will also accelerate a host of otherinitiatives Spheris is currently executing and further developing for both itstechnology and service capabilities. Speaking on behalf of the entire Vianeta team, we are pleased to bejoining such an industry force, said Vianeta Chief Executive Officer RalphAceves. We are looking forward to becoming part of the Spheris mission tolead the medical documentation industry through superior services and best-in-class technology. Following completion of the transaction, Spheris will continue to serviceand enhance the Vianeta solutions currently deployed in the marketplace. The transaction, which is subject to customary closing conditions, isexpected to close in the first quarter of 2006. Financial terms of theparties' agreement were not disclosed.
Dragon NaturallySpeaking from Nuance Strengthens [2005-11-28]
Dragon NaturallySpeaking from Nuance Strengthens Foothold as Standard Speech Recognition Solution for Healthcare Industry
Nuance Communications, Inc. (Nasdaq: NUAN), formerly ScanSoft, Inc., the leading provider of speech and imaging solutions for businesses and consumers around the world, today announced that its Dragon(TM) Dictation Solutions family has become the standard in speech recognition technology for the healthcare sector. Already in use at thousands of healthcare facilities worldwide, Dragon NaturallySpeaking(R) Medical, Dragon NaturallySpeaking(R) SDK (software developer kit), and the Dragon(TM) MT Workflow System can save healthcare organizations thousands of dollars per doctor each year in reduced or eliminated manual transcription costs by converting speech into text at up to twice the speed of the spoken word, automating the clinical documentation process and eliminating the high cost and long turnaround time associated with the manual transcription of patient notes.
Nuance provides the healthcare industry with an unmatched set of speech recognition solutions, including Dragon NaturallySpeaking Medical, the world's best selling front-end speech recognition solution for electronic medical records systems, the Dragon NaturallySpeaking Server SDK, which enables the server-based processing and workflow of recorded patient information, and the Dragon MT Workflow System, a scalable, HIPAA compliant, web-based platform for end-to-end transcription processing The Dragon NaturallySpeaking family of products includes 14 pre-made medical specialty vocabularies, supports the creation of custom vocabularies, and delivers patent-pending roaming user capabilities to enable use within distributed care provider facilities.
A growing number of healthcare vendors and integrators have joined with Nuance to speech-enable their healthcare solutions, including: Allscripts Healthcare Solutions; Cerner CoPath; ChartLogic, Inc; Clinical Content Consultants, LLC; Commissure; Dictaphone; DR Systems, Inc.; ERad; Guardian; IDX Systems Corporation; Instar; Meditech; Misys Healthcare Systems; Mountain Medical Technologies, Inc.; Northbase; NovaRad; Polaris-Danforth; SoftMed Systems; STI Computer Systems, Inc.; Structurad; Swearingen; ThinAir; Virtual Radiological Consultants; and Voicebrook. In addition, ScanSoft(R) Dragon NaturallySpeaking(R) has garnered accolades from respected publications worldwide, including CNet, Computer Reseller News, Forbes, The New York Times, PC Magazine, PC World, and SmartComputing.
Nuance's Dragon Dictation Solutions apply highly accurate speech recognition to intelligent workflow processing solutions in order to reduce the costs associated with manually converting medical dictation into text, estimated at $10 billion in North America and $15 billion worldwide each year. Nuance delivers these solutions through its growing number of channel partners, including healthcare information systems vendors, systems integrators, digital dictation systems vendors and MTSOs. Dragon Dictation Solutions are used worldwide by physicians, records management and medical transcription teams within hospitals, clinics and physician practice organizations, as well as MTSOs to enhance their current transcription services businesses.
Nuance Speech Solutions
Nuance Speech Solutions make the user experience more compelling and expand business potential. Through its dictation, embedded and network speech solutions, Nuance offers the world's preeminent portfolio of speech technologies, expertise and solutions that transform the way people interact with businesses, information and each other. Today, thousands of companies and millions of users around the world depend on Nuance Speech Solutions to deliver vital information, increase productivity and conduct business. To experience the power of the spoken word, please visit nuance.com.
About Nuance Communications, Inc.
Nuance (Nasdaq: NUAN) is the leading provider of speech and imaging solutions for businesses and consumers around the world. Its technologies, applications and services make the user experience more compelling by transforming the way people interact with information and how they create, share and use documents. Every day, millions of users and thousands of businesses experience Nuance's proven applications and professional services. For more information, please visit nuance.com.
Nuance, the Nuance logo, Dragon, and NaturallySpeaking are trademarks or registered trademarks of Nuance Communications, Inc. or its affiliates in the United States and other countries. All other company names or product names may be the trademarks of their respective owners.
MedQuist pays the price for inconsistent billing [2005-11-13]
MedQuist pays the price for inconsistent billing
Last year, Mt. Laurel, NJ-based transcription vendor MedQuist, Inc., admitted to longstanding billing irregularity. Preliminary financial results from 2005 are showing the damage. In 2004, Medquist announced that 2002 and 2003 financial results were inaccurate. The company, faced with lawsuits from customers, transcriptionists, and shareholders, replaced leadership; consolidated offices and cut staff; lost its NASDAQ stock listing; and instituted new billing and corporate-ethics policies.
Medquist brought in $214 million in the first six months of 2005, compared with $232 million during the same period last year, and expects revenue in the second half of 2005 to fall from first half levels. The company reported a preliminary $8 million operating loss for the first half of 2005, when the company incurred $16 million in costs related to the ongoing internal investigation and litigation. The company gave no indication when the internal investigation will end or when official financial reports will be filed. It has about $100,000 in debt.
TRANSCEND: appointment of Lance Cornell as Chief Financial Officer [2005-11-02]
TRANSCEND SERVICES, INC. today announced the appointment of Lance Cornell as Chief Financial Officer. Mr. Cornell replaces Mr. Mark D. Meersman, who has decided to return to the position of partner-in-charge of inProcess Consulting, a management consulting firm that he left six months ago to join Transcend.
Mr. Cornell is a Certified Public Accountant with over 18 years of experience in accounting, finance and financial management, including controller and chief financial officer positions with publicly traded companies. Prior to joining Transcend, Mr. Cornell was Chief Financial Officer for nearly five years at Facility Resources, Inc., a private consulting firm specializing in facility-related project management, systems implementation and outsourcing for large corporations. Prior to that experience, Mr. Cornell served in chief financial officer and controller positions in two separate publicly traded companies in the healthcare information systems industry. Mr. Cornell received a B.S. degree in Finance with highest honors from the University of Colorado.
Larry Gerdes, the Company's President and Chief Executive Officer, commented on the announcement: We welcome Lance's financial executive experience to our executive management team and thank Mark for his many and varied contributions to our Company. Mark has assisted the company in the automation and analysis of financial data that will prove helpful as we focus on improving our overall profitability. Lance not only understands the challenges facing the Company, but also sees the opportunities for the Company to grow and prosper in the $6 billion market for medical transcription services in the United States. We are particularly excited about his experience in planning and financing growth strategies, including acquisitions.
Mr. Cornell commented: I am excited about the potential effects that the Company's BeyondTXT speech recognition functionality and its strategic acquisition initiative should have upon the Company's financial performance. I look forward to helping the Company achieve its growth and profitability objectives.
About Transcend Services, Inc.
Transcend believes that accurate, reliable and timely transcription creates the foundation for the patient medical record. To this end, the Company has created Internet-based, speech recognition-enabled voice-to-text systems that allow its skilled medical language specialists to securely and quickly produce the highest quality medical documents. The Company's wide range of transcription services encompass everything needed to securely receive, transcribe, edit, format and distribute electronic copies of physician-dictated medical documents, from overflow projects to complete transcription outsourcing.
For more information, visit http://www.transcendservices.com.
South to become another MT outsourcing destination [2005-10-27]
PART of the developmental strategy in the region is the determination of information and communication technology (ICT) industry niche for Region 12.
Transcription, particularly in the medical field, is one of the priority ICT sub-sectors being pushed.
Its consideration includes the rising global demand for competent yet cost-effective workers.
Foreign MT outsourcing companies continue to seek medical transcriptionists for their familiarity with US medical standards, terminology, and practices.
The region has access to cost-effective telecommunications and business infrastructure.
The 12-hour time difference between the US and Soccsksargen could facilitate speedy delivery of output to US hospitals.
So far, only Garner Global Transcription, Inc. and Transcode One Solutions in General Santos City are the registered MT company based in Region 12.
But there are already a number of sub-contractors that operate home-based.
A group of medical persons received a transcription project from an existing MT companies in Manila for a certain fee.
After a year of industry advocacy lead by RITECC 12 and Department of Trade and Industry (DTI) 12, not only the local business sector together with the medical practitioners are manifesting their investment interest but the growing appreciation by the academe and training institutions to join the developmental bandwagon.
One of the activities during the 2nd e-Business Week Celebration is the conduct of a Forum on Medical Transcription on October 26, 2005 at Family Country Homes and Convention Center in General Santos City.
This aims to prepare professionals to work in MT firms and provide entrepreneurs with information on the MT business, said DTI regional director Ibrahim Guaimadel.
Registration Open for Nation's First University Course [2005-10-25]
Registration Open for Nation's First University Course on Medical Transcription Voice Recognition Editing; Pair of Richmond, VA Community Colleges Partner With OAK Horizons Cymed For Online Class
10/24/2005 5:18:00 PM EST
The Community College Workforce Alliance (CCWA) in Richmond VA, opened enrollment today for a medical transcription training course aimed at graduating students who are prepared to edit preliminary medical reports generated through voice recognition. CCWA is a partnership between J. Sargeant Reynolds and John Tyler Community Colleges and serves the workforce needs of the Greater Richmond area. This first of its kind university-based course was developed with the support of OAK Horizons, an online content developer of Transcriptionist training courses and CyMed, the nation's third largest employer of domestic transcriptionists.
We're excited about launching the Medical Transcription/Voice Recognition Editing program, stated Matt Meyer, Dean of CCWA Workforce Training. Our mission is to serve the workforce and economic development needs of the region through educational programs that prepare students for positions that offer solid long term employment prospects. Since CyMed has already agreed to hire each graduating student for the first three years of the program, we are able to offer tremendous security for any student who is anxious about choosing an educational track that leads towards a long term employable career path.
This partnership makes a lot of sense for CyMed, CCWA and the MT community on a number of levels, commented Robert Lynch, CyMed's President and CEO. Although we certainly expect the current method of transcription to be around for a long time, this course will help extend the range of employment opportunities available to program graduates. CCWA and OAK Horizons have developed an excellent program and we are looking forward to hiring graduates with the expanded voice recognition editing skill set.
Spheris India looking at expanding in tier-II cities [2005-10-20]
BANGALORE: US-based medical transcription company Spheris, which recently acquired HealthScribe, is looking to expand in a tier-II cities in India, preferably in the South by 2006. Spheris India (formerly HealthScribe), based in Bangalore, recently opened an additional 300-seat center in Coimbatore this month.
The company has over 2000 employees in India at present, and plans to ramp up the headcount to 3000, next year.
“We feel that large cities are very competitive while smaller cities have a lot more candidates who are serious in taking up medical transcription as a full-fledged career,” said Suresh Nair, CEO and MD, Spheris India.
Elaborating this aspect, he said that unlike BPOs or call centers, which require good spoken English skills, medical transcription is more knowledge-oriented and needs good grammatical skills.
Commenting on the merger with Spheris- the second biggest medical transcription company globally, he said that the move had made HealthScribe a truly global company with access to bigger funds and support for growth.
The company has already added 15 new accounts from the Spheris' stable. Nair said that next year, he plans to start a technology development team that would build solutions based on their delivery platform and sell them commercially.
Nair also revealed that by end of 2006, Spheris India would look at new areas like medical coding and billing. Spheris' revenues globally are in the region of $200 million. He expects Spheris India to grow at 60% this year. “The medical transcription industry has made a comeback in India and US customers are sending more and more work to us,” he said.
CBay Systems Makes Deloitte’s List of 500 Fastest Growing [2005-10-20]
CBay Systems Makes Deloitte’s List of 500 Fastest Growing Technology Companies in North America Maryland Fast 50 Rapid Growth Recognized for the Second Year in a Row
CBay Systems, a leading provider of healthcare business process outsourcing (BPO) services and the largest provider of Indian transcription technology and services to the US healthcare market today announced that it was again named to the Deloitte Technology Fast 500. The ranking measures the 500 fastest growing technology companies in North America, based on percentage revenue growth over the past five years, during which CBay Systems grew 779 percent.
CBay addresses various issues in the healthcare space, primarily focusing on medical transcription. The company’s HIPAA-compliant solutions leverage Internet technologies to provide integrated dictation capture, transcription and web-based document management services to hospitals, clinics and doctors.
Making the Deloitte Technology Fast 500 for the second year in a row is commendable in today’s highly competitive technology industry, said Tony Kern, deputy national managing principal of Deloitte’s Technology, Media Telecommunications industry practice. “Achieving sustained revenue growth of 779 percent over five years is a tremendous achievement. We congratulate CBay Systems on being one of the 500 fastest growing technology companies in North America.
Inclusion on the nation-wide Fast 500 list follows CBay’s recent acknowledgement as a member of the Deloitte Technology Fast 50 in Maryland. This list highlights the 50 fastest growing technology companies in the state of Maryland for 2005.
CBay’s Chairman CEO, Raman Kumar said, “It is an honor for CBay to be recognized for the second year in a row, but we are especially proud of these awards, as they communicate our explosive growth and ever-increasing customer base, providing concrete evidence of our superior product and commitment to customer service.” He also added, “We have 41 centers in our network in India, employing over 5000 people and the number is increasing every month, to cater to our expanding customer base in the US.”
Fast 500 Selection and Qualifications
The Fast 500 list is compiled from Deloitte’s 15 regional North American Fast 50 lists, nominations submitted directly to the Fast 500, and public company database research. Entrants must be headquartered in North America and must be a “technology company,” defined as a company that owns proprietary technology that contributes to a significant portion of the company's operating revenues; or devotes a significant proportion of revenues to the research and development of technology. Using other companies' technology in a unique way does not qualify.
About CBay
CBay Systems is a leading provider of healthcare technology and business process outsourcing (BPO) services and the largest global provider of transcription services to the healthcare industry. CBay’s more than 5,000 highly trained medical language specialists and customer service professionals spread out in 41 production centers situated across 10 states in India serve 650+ health systems, hospitals, clinics and physician practices 24 hours a day, 365 days a year, using HIPAA compliant web-based technologies with a commitment to the highest standards of quality, service and value. CBay is headquartered in Annapolis, Maryland with the Indian corporate office in Mumbai. For more information, visit www.cbaysystems.com.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms and their respective subsidiaries and affiliates. In the US, services are provided by the subsidiaries of Deloitte Touche USA LLP (Deloitte Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP and their subsidiaries), and not by Deloitte Touche USA LLP
MedQuist Moving to Centralized, National Service Delivery Model [2005-10-11]
MedQuist Moving to Centralized, National Service Delivery Model
10/10/2005 9:00:00 AM EST
Shift Will Streamline Operations, Drive Improved Service Standards and Technology
MedQuist Inc. (Pink Sheets: MEDQ.PK) today announced that management, in accordance with direction received from the company's board of directors, adopted a plan on October 6, 2005 to centralize and streamline the company's organizational and operational structure to better serve its customers. The plan is expected to improve operating performance and increase customer satisfaction.
The move toward a new structure and delivery model will be supported by the following actions:
-- Medquist will shift resources to a single national service delivery and support organization for all of the company's services and products, eliminating local service centers. This new centrally managed structure will enhance workflow management, with the result being dramatically improved levels of service and quality for our customers. The company expects this transition to result in the consolidation of approximately forty facilities over the next twelve months.
-- In conjunction with the shift to centralized customer service delivery, the company's national service delivery and support organization will, in the fourth quarter of this year, begin to implement its Qtinuum of Care initiative. The Qtinuum of Care initiative is focused specifically on driving increased levels of customer satisfaction through a new centralized and integrated customer service and support model.
-- To drive greater customer focus, the company's product management group will be moving under the direction of the Chief Technology Officer. Additionally, new products in the area of voice capture, speech recognition and on-premise transcription solutions will be introduced within the next twelve months.
-- The company's Sales and Marketing organizations will be combined, which will improve communication between MedQuist's direct sales group and its marketing support organization. As a result of this combination, the Senior Vice President - Marketing and Business Development and the Senior Vice President - Sales have separated from the company. MedQuist is currently engaged in the process of selecting the combined organization's leadership.
The company anticipates that all of the foregoing actions will be complete by the end of the third quarter of 2006, and that it will record restructuring charges in the range of $6.5 million to $8.5 million pre-tax, largely representing facility exit costs and employee severance payments. As a result of the plan, the company also expects to realize annualized savings of approximately $18.5 million.
About MedQuist:
MedQuist, a member of the Philips Group of Companies, is a leading provider of electronic medical transcription, health information and document management products and services. MedQuist provides document workflow management, digital dictation, speech recognition, mobile dictation devices, Web-based transcription, electronic signature, medical coding products and outsourcing services.
Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: Some of the statements in this Press Release constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 including, but not limited to, statements relating to the Company's expected results of operations and financial condition, scheduled actions under plan to improve the company's organizational and operational structure, restructuring charges expected to be recorded in connection with the plan, expected cost benefits resulting from the plan, expected reductions in location, and consolidation and reorganization of technologies and business units. These statements are not historical facts but rather are based on the Company's current expectations, estimates and projections regarding the Company's business, operations and other factors relating thereto. Words such as may, will, could, would, should, anticipate, predict, potential, continue, expects, intends, plans, projects, believes, estimates and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. As a result, these statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The Company's actual results may differ from the forward-looking statements for many reasons, including unanticipated expenditures in connection with the effectuation of the plan to improve the company's organizational and operational structure; unanticipated difficulties in connection with reductions in location, or the consolidation and reorganization of technologies and business units; customer reaction to the plan; any direct or indirect impact of the matters disclosed in the Form 12b-25 filed by the Company on August 19, 2005 on the Company's operating results or financial condition; any continuation of pricing pressures and declining billing rates; difficulties relating to the implementation of management changes throughout the Company; and the outcome of pending and future legal and regulatory proceedings and investigations.
MedQuist Shareholder Derivative Suit Dismissed [2005-10-05]
MedQuist Shareholder Derivative Suit Dismissed
10/4/2005 8:44:00 AM EST
MedQuist Inc. (Pink Sheets: MEDQ.PK) today announced the dismissal with prejudice of a shareholder derivative action filed in U.S. District Court in New Jersey. The suit, Rhoda Kanter (Plaintiff) v. Hans M. Barella et al. (Defendants), was filed November 12, 2004 against Koninklijke Philips Electronic N.V. (Philips) and ten current and former members of MedQuist's Board of Directors. Medquist was named as a nominal defendant.
In a ruling dated September 21, 2005, the Court, the Honorable Jerome B. Simandle presiding, found Plaintiff's allegations that MedQuist's Board members breached their fiduciary duties to the Company to be insufficient. The Plaintiff had alleged that for a period from 2001 through 2004, the Defendants violated their fiduciary duties by permitting artificial inflation of billing figures; failing to adequately ensure accurate and lawful billing practices; and failing to accurately report the Company's true financial condition in its published financial statements. To the contrary, the Court concluded: Far from alleging facts supporting a substantial likelihood of liability, Plaintiff here has painted a picture of a board of directors that acted responsively given the circumstances....
Howard S. Hoffmann, MedQuist CEO, was confident of the outcome. It is the right decision, and certainly supports the actions of MedQuist's Directors in fulfilling their responsibilities to the Company.
About MedQuist:
MedQuist, a member of the Philips Group of Companies, is a leading provider of electronic medical transcription, health information and document management products and services. MedQuist provides document workflow management, digital dictation, speech recognition, mobile dictation devices, Web-based transcription, electronic signature, medical coding products and outsourcing services.
Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: Statements in this press release regarding MedQuist's business which are not historical facts are forward-looking statements that involve risks and uncertainties. Such risks and uncertainties, which could cause actual results to differ from those contained in forward-looking statements include, but are not limited to: (1) our ability to recruit and retain qualified transcriptionists and other employees; (2) the impact of new services or products on the demand for our existing services; (3) our current dependence on medical transcription for substantially all of our business; (4) our ability to expand our customer base; (5) changes in law, including, without limitation, the impact the Health Information Portability and Accountability Act (HIPAA) will have on our business; (6) infringement on the proprietary rights of others; (7) risks inherent in diversifying into other businesses; (8) any continuation of pricing pressures and declining billing rates; (9) difficulties relating to the implementation of management changes throughout the Company; (10) the outcome of pending and future legal and regulatory proceedings and investigations; and (11) any direct or indirect impact of the matters disclosed in the Form 12b-25 filed by the Company on August 19, 2005. Actual outcomes and results may differ materially from what is expressed or forecasted in forward-looking statements. As a result, forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Global Leaders, Community Partners [2005-09-30]
Global Leaders, Community Partners; Acusis Assumes Corporate Leadership Role in Pittsburgh Symphony Orchestra Fundraising
PITTSBURGH--(BUSINESS WIRE)--Sept. 29, 2005--In a relationship that began three years ago, one based on the shared values of commitment to excellence, community involvement and global leadership, Acusis has restated its commitment to the Pittsburgh Symphony Orchestra. Pittsburgh-based Acusis, a premier provider of medical transcription technology and delivery services, today announced its continued confidence in the PSO through a second multi-year gift. This $75,000-per-year gift over a three-year period will be counted toward the PSO's Annual Fund campaign.
Acusis's involvement goes beyond writing a check. David Iwinski, Jr., President and CEO of Acusis, serves on the Pittsburgh Symphony Board of Directors. He was author of the Commitment to Excellence Manifesto, which outlined guiding principles to focus the Pittsburgh Symphony Board to fulfilling a promise for excellence throughout the entire institution. Iwinski is a member of the Corporate Leadership Team, which cultivates and solicits new and existing corporate donors and is an active member on the Vitalization subcommittee of our Strategic Planning process. He further joined Board member David Nelsen for a series Tech Talks, which introduced the High Tech community to the Pittsburgh Symphony Orchestra.
Iwinski remarked, A relationship with the Pittsburgh Symphony is a perfect fit. Acusis understands, just like the Pittsburgh Symphony, the importance of delivering the highest quality, whether that's transcribed reports or a musical performance. We also understand the value of ensuring that the Pittsburgh Symphony has a stable financial base, as the Symphony is certainly one of the most globally respected ambassadors of Pittsburgh. We are proud to provide this continuing support to the Orchestra.
Lawrence Tamburri, Pittsburgh Symphony Orchestra President, commented, Acusis is a global company with a Pittsburgh focus. This long-term commitment demonstrates their confidence in the Pittsburgh Symphony Orchestra, both as an internationally acclaimed orchestra and as a committed community partner. Three years ago, during a crucial financial period, the PSO asked the community, 'Does Pittsburgh want a world-class Symphony?' Acusis was the newest corporate donor to say yes. And, they continue to say yes, year after year, in their multi-year commitments.
HL7 Launches eHealth Effort for Katrina Relief [2005-09-30]
The Health Level Seven, Inc. (HL7) community is supporting the development of portable, interoperable electronic health records for the hundreds of thousands of people whose lives have been disrupted by Katrina. Many HL7 members are already involved, improving access to vital healthcare information and HL7 has formed a task force to support and guide further efforts. Last week, HL7 issued a call to members to participate and is forging relationships with other industry groups to solve the immediate and long-term problems of disaster relief and preparedness.
The HL7 community represents the most concentrated group of interoperability expertise anywhere. We are rising to the challenge of rebuilding the medical records of the displaced population and doing so in a way that can become a model for the future of the country, says Mark Shafarman, HL7 Chair. We stand ready to work with anyone and everyone implementing standards-based applications. Our Reference Information Model for healthcare, our community of experts and our standards and specifications for interoperability can guide this process. The Healthcare Information and Management Systems Society (HIMSS) Electronic Health Record Vendors' Association (EHRVA) is already working with the Office of the National Coordinator for Health Information Technology (ONCHIT) towards constructing and integrating an electronic health record (EHR) infrastructure within the areas of the gulf coast affected by Hurricane Katrina.
HL7 Standards Making a Difference
HL7 standards are already making an impact on the ground in the wake of Katrina providing access to records of childhood immunization records. The American Immunization Registry Association (AIRA) (www.immregistries.org) -- an HL7 member organization -- reports that nine registries are now using HL7 messages to query the Louisiana Immunization Network for Kids Statewide (LINKS), resulting in retrieval of 4,250 records as of Tuesday, September 27. Immunization registries querying LINKS are: Arizona, Houston, Idaho, Indiana, Maryland, Ohio, Washington, West Virginia, and Wyoming.
The importance of HL7 standards was never more evident than during Katrina, said Julie A. Boom, M.D., Medical Director, Houston-Harris County Immunization Registry and Director of the Immunization Project at Texas Children's Hospital, and AIRA member. Literally overnight, the Houston-Harris County Immunization Registry was able to be connected to the 'LINKS' Louisiana statewide immunization registry with the assistance of Scientific Technology Corporation. Because each registry was fully HL7 compliant, this link was able to be made quickly and easily. Retrieving these records from LINKS has saved the public health community thousands of dollars for the cost of re- immunizing these children and it saves the children of Louisiana from the discomfort of additional immunizations. This experience truly highlights the importance of following national standards and should encourage other immunization registries to fully support HL7 standards as soon as possible.
More solutions are in the works:
* Oracle Corporation, an HL7 benefactor, had been working in close
cooperation with the Louisiana Department of Health and Hospital to
create a regional solution for health information sharing before the
hurricane struck and is now accelerating those efforts.
* HL7 member organization OZ Systems, which provides information
technology for the State of Texas' Early Hearing Detection and
Intervention Program (TEHDI), is exploring ways to use HL7 messaging
standards to transfer hearing screening results data for Louisiana
newborn evacuees who had to have their screenings done in Texas. This
data needs to be sent back to respective birthing facilities in
Louisiana or the Louisiana Department of Health as needed for CDC
reports, or to assure that an infant receives care if necessary.
* Intel Corporation is coordinating the donation of 1,500 laptop personal
computers to the American Red Cross for distribution to shelters in
support of Katrina disaster relief efforts. In addition, Intel will
donate 150 wireless Internet access points.
* Additional support for the Gulf region has been pledged by HL7 members
including the Los Angeles County Department of Health Services,
Information Systems Branch; Medquist Corporation; Microsoft Corporation
and TeleVital.
HL7 and its more than 2,220 individual and corporate U.S. members have information technology expertise in all segments of the healthcare industry, and real-world experience in developing an infrastructure that is standards based and allows interoperable records to be distributed over multiple sites using multiple local applications. In addition, HL7's more than 500 corporate members include not only EHR vendors, but infrastructure and integration vendors together with suppliers of standards-compliant dictation and transcription.
HL7 Response and Recovery Taskforce
The HL7 Response and Recovery Taskforce has been meeting daily, speaking with government officials, technologists and planners. The Task Force will coordinate education and outreach to the HL7 community including vendors and providers, HL7 International Affiliates as well as other standards development organizations, and U.S. national bodies such as the Office of the National Coordinator for Health Information Technology (ONCHIT), the Department of Defense (DoD), the Veterans Health Administration (VHA), and the Centers for Disease Control and Prevention (CDC). The Taskforce will design, coordinate and organize implementation projects focusing on the creation of a healthcare information infrastructure to help address the personal and public health information crisis created by Katrina.
HL7 members wishing to be involved in this effort should respond via katrina@HL7.org and sign onto the Katrina support listserv available on the HL7 web site (www.HL7.org).
Participation by EHRVA
In the aftermath of Katrina, the EHRVA has been actively engaged with the Office of the National Coordinator for Health Information Technology (ONCHIT) and other healthcare stakeholders to support the potentially nomadic evacuee population in the goal of making medical record information available wherever they receive care.
* The EHRVA is on task of suggesting immediate means to meet emergency
patient information needs and laying the groundwork for rebuilding a
patient information management infrastructure. During this process, the
EHRVA is dedicating workgroup and executive committee time to plan a
practical framework.
* EHRVA contribution to Katrina Relief leverages the organization's
partnership with IHE and an ongoing commitment to devise viable
interoperability models.
* EHRVA is in dialogue with ONCHIT and channeling updates and requests to
members to support roll-out of response plans now and in the near
future.
EHRVA has joined with HL7 in this call to members to participate and pool resources for interoperable electronic health records. The two organizations are ideal partners in this effort, since two of their core goals are based on making progress in the areas of standards and interoperability. EHRVA is comprised of 35 member companies that serve the vast majority of healthcare providers in the nation with Healthcare Information Technology (HIT) solutions, which complements and overlaps with HL7's membership.
Since Hurricane Katrina we've been humbled by the dedication of our clients in hospitals and physician practices as they have brought EHR technology into the heart of the crisis. We are taking our cues from providers who are working from the conviction that a stronger HIT foundation will better prepare us for any eventuality such as these recent storms, said Charlene Underwood, EHRVA chairperson and Director, Government and Industry Relations for Siemens Medical Solutions.
Collaborative Efforts toward a Regional Recovery
The HL7 community has the largest single pool of expertise on healthcare information systems and how to connect them for effective collection and delivery of healthcare information. Its members are active in efforts with state and local and national agencies, including the Department of Health and Human Services and the Centers for Disease Control and Prevention. In addition to EHRVA, HL7 is offering to collaborate with all organizations providing solutions for the affected area.
About EHRVA
HIMSS EHRVA (http://www.himssehrva.org) is a trade association of Electronic Health Record (EHR) vendors who have joined together to lead the HIT industry in the accelerated adoption of electronic health records in hospital and ambulatory care settings in the US. The association provides a forum for the EHR vendor community to speak with a unified voice relative to standards development, the EHR certification process, interoperability, performance and quality measures, and other EHR issues as they become subject to increasing government, insurance and provider driven initiatives and requests. Membership is open to HIMSS corporate members with legally formed companies designing, developing and marketing their own commercially available EHRs with installations in the USA.
The association, comprised of 35 member companies, is a partner of the Healthcare Information and Management Systems Society (HIMSS) and | | |