Johnson & Johnson will buy Eastman Kodak Co.'s clinical diagnostics division for about $1 billion in cash. The acquisition will make New Brunswick, N.J.-based Johnson & Johnson one of the world's largest manufacturers of blood chemistry analyzers and other laboratory equipment with $1 billion in annual sales. The sale of its diagnostics division will complete Kodak's efforts to pull out of businesses not related to imaging. Rochester, N.Y.-based Kodak previously announced it will sell its Sterling Winthrop over-the-counter-drug business to SmithKline Beecham for $2.9 billion (Sept. 5, p. 12). Earlier this year, it sold its prescription drug business to Sanofi Group for $1.7 billion (June 27, p. 6).
A Belgian system last week was the first to link with American Medical International's rejuvenated overseas operations. AMI announced a "strategic alliance" with University Hospitals of the Catholic University of Leuven, Belgium, just one month after hiring Robert Buchanan, former director of Massachusetts General Hospital in Boston, to lead the international effort. Terms of the agreement weren't disclosed, but AMI said University Hospitals will serve as referral centers for highly specialized services and help determine acquisition opportunities in Europe. AMI, which had more than $2 billion in revenues last year, left the foreign hospital market in 1991 to reduce debts from a 1988 leveraged buyout (Aug. 8, p. 92).
Coram Healthcare Corp. said last week it will set aside $138 million as part of a restructuring plan associated with the four-way merger of home-infusion companies T2 Medical, Curaflex Health Services, HealthInfusion and Medisys. The total set aside includes a pre-tax restructuring charge of $92.3 million to implement the restructuring, $44 million of which will go toward severance payments, benefits and outplacement services for laid-off employees and senior executives who have since resigned from the company. Coram plans to consolidate 80 branch offices and lay off 590 employees as part of the restructuring. Coram is the nation's second-largest home infusion company. Its new corporate headquarters will be located in Boulder, Colo.
Richard J. Stull II is resigning as president and chief executive officer of the North Broward Hospital District, Fort Lauderdale, Fla. He will become executive vice president of Pediatrix, a Fort Lauderdale-based pediatric services management company. In his six years as CEO, Mr. Stull, 50, has expanded services at the four-hospital public system. He also oversaw increases in the system's net patient revenues to $353 million in 1994 from $192 million in 1989. North Broward earned $9.2 million in 1994, compared with $26,000 in 1989. But Mr. Stull also became enmeshed in battles with physicians and the system's board over expansion plans and his compensation (Dec. 6, 1993, p. 64).
F. Kenneth Ackerman Jr. has joined McManis Associates, a Washington-based management and research consulting firm, as a principal associate. He will be involved with integrated system development. This year Mr. Ackerman ended a 30-year career with Geisinger, a Danville, Pa.-based healthcare system, where he held various positions (Jan. 10, p. 16). Most recently, he served as president at Geisinger Medical Center in Danville. Geisinger operates two hospitals, a 500-physician clinic and an HMO.
HHS has proposed regulations that organ-procurement agencies must meet for Medicaid and Medicare eligibility. When adopted, the regulations will replace voluntary guidelines now set by the United Network for Organ Sharing. Under federal contract, UNOS maintains a database that matches organs to patients. HHS announced its intent to develop regulations in 1989. "Many of the proposed regulations are very similar to the policies that we have in effect," an UNOS spokesman said. The proposed regulations, however, would require organ-procurement agencies to report directly to HHS the type and number of organs recovered and transplanted, instead of reporting that information to UNOS. They also would set a minimum annual number of donors that an agency must recruit.