Eclipsys Corp., a Delray Beach, Fla.-based healthcare information systems and services company, completed the acquisition of Transition Systems, a Boston-based provider of software to identify and analyze outcomes of healthcare services, in a stock transaction valued at $310 million. Transition Systems, a publicly traded company since 1996, began operations in 1985 as an initiative of New England Medical Center in Boston. Before its acquisition by Eclipsys, Transition Systems completed its own acquisition of HealthVision, a Santa Rosa, Calif.-based developer of clinical decision support software, for $25.6 million in cash plus up to an additional $10.8 million if specified financial targets are met.
Medline Industries has won a five-year, sole-source contract to supply Tenet Healthcare Corp. hospitals with custom surgical procedure trays. Mundelein, Ill.-based Medline said the agreement, which took effect Jan. 1, is expected to generate more than $100 million in new revenues over the life of the agreement for the privately held supply company. Medline also will be a dual-source provider to customers of Santa Barbara, Calif.-based Tenet's BuyPower group purchasing organization.
HRPT Properties Trust disclosed plans last month to spin off most of its healthcare holdings into a new real estate investment trust. Shares of the new REIT, called Senior Housing Properties Trust, would be sold to investors in an initial public offering. Newton, Mass.-based HRPT plans to transfer $625 million of its $848 million in healthcare investments to the new company. The remaining healthcare properties in HRPT's portfolio represent weaker-performing assets, according to Fitch Investors Service, which maintains a BBB+ rating on HRPT. Those remaining assets will be sold or liquidated, the REIT says.
Mariner Post-Acute Network, an Atlanta-based long-term-care company, posted a net loss of $210 million, or $4.31 per share, for the year ended Sept. 30, 1998, compared with net income of $44 million, or 73 cents per share, in the previous year. The loss included one-time charges of $238 million, including expenses related to the November 1997 and July 1998 mergers that created the company. Revenues rose 79% to $2 billion. Mariner operates 428 sub-acute-care facilities in 42 states.
Health Care Property Investors says it invested $208 million in healthcare real estate in the fourth quarter of 1998, spending a record $458 million on investments for the year. That's a 75% increase over the previous year's activity. Fourth-quarter figures reflect a $49.3 million purchase of 10 nursing homes in Indiana and Pennsylvania, which are being leased to affiliates of Fort Smith, Ark.-based Beverly Enterprises.