GE Medical Systems has acquired National Medical Diagnostics of Cleveland, a pioneer in "asset management" for medical equipment. Terms weren't disclosed. The company will retain its name, location and current employee structure. In varying degrees, asset management programs consolidate maintenance of a diverse group of equipment under one contract and provide other services, such as inventory control, quality assurance and management reporting. The programs originally were offered by independent companies such as National Medical, but several equipment manufacturers recently began marketing their own services. GE Medical, a Milwaukee-based manufacturer of diagnostic imaging equipment, established an asset management program in 1994.
Specialty Healthcare Management has signed six new contracts to provide specialty clinical services within hospitals and nursing homes. In addition, the company renewed 12 existing contracts. In a separate development, the company announced it has named K. John Harrison, 47, to the post of president. He will continue as chief operating officer. Specialty Healthcare is a contract management provider that runs more than 80 physical medicine, rehabilitation, psychiatric and chemical-dependency programs. The privately held company offers its services in acute, subacute, outpatient and partial-hospitalization settings. Based in Englewood, Colo., Specialty Healthcare generates annual revenues of more than $40 million.
VHA said it will market its group purchasing services to state hospital associations and regional shared services companies. Irving, Texas-based VHA expects to gain $550 million in annual contract purchases by 1998 because of the decision. Its members bought about $6 billion in goods and services through VHA contracts in 1995. The effort to tap the secondary group purchasing market will be led by Healthcare Purchasing Partners, a Minneapolis-based VHA subsidiary. The group negotiates purchasing contracts for hospitals and other providers in the Midwest. It recently signed a contract that opened its contracts to ServiShare, which represents 150 hospitals. ServiShare is affiliated with the Association of Iowa Hospitals and Health Systems, Des Moines.
Owens & Minor posted a net loss of $11.3 million, or 53 cents per share, for the year ended Dec. 31, 1995, compared with net income of $7.9 million, or 15 cents per share, in the previous year. Sales rose 24% to almost $3 billion. The Richmond, Va.-based company is one of the leading distributors of medical-surgical supplies. Its 1995 results include a
$16.7 million restructuring charge for its 1994 merger with Stuart Medical. Without the charge and preferred dividends of $5.2 million, the company said it would have reported a $1 million loss. For the fourth quarter, the company reported a net loss of $9 million, or 33 cents per share, compared with net income of $6.8 million, or 18 cents per share, in the year-ago quarter. Sales rose 2% to $747 million.
St. Jude Medical plans to acquire Daig Corp., a maker of electrophysiology catheters for 10 million shares of stock, or about $430 million. Analysts said the move will make St. Jude a greater force in the treatment of atrial fibrillation, a heart disorder. Minnetonka, Minn.-based Daig earned about $10.5 million, or 69 cents per share, on sales of $38.3 million in 1995. Its catheters are used to kill defective heart muscle. St. Jude, based in St. Paul, Minn., makes pacemakers and other cardiac devices.