Medical products and services supplier Cardinal Health, Dublin, Ohio, will cut 600 jobs, while healthcare information technology developer Sage Software Healthcare, Tampa, Fla., will lay off 235 employees, the companies announced.
According to a Cardinal Health news release, the company will reorganize into two business units. It will combine its network of pharmaceutical- and medical-product distribution centers and nuclear pharmacies into a new healthcare supply-chain services unit under the direction of Vice Chairman George Barrett. The company will sell infusion, medication-dispensing, respiratory-care and infection-prevention products under a clinical and medical products segment led by Vice Chairman David Schlotterbeck. The job cuts include about 160 positions currently open within the company that wont be filled. The company will take a restructuring charge of about $63 million, the substantial majority of which will be posted during the current fiscal year that began July 1.
Sage Software Healthcare will lay off 235 people from its workforce of about 1,700.
Every area of the company was touched; however, we did everything we could to minimize the impact on customer-facing jobs, sales, customer service and account management, said company spokeswoman Lynne Durham.
The healthcare IT unit is a division of Sage Software, which is the U.S. subsidiary of the Sage Group, headquartered in Newcastle upon Tyne, England, which employs over 13,900 people worldwide, according to the company Web site.
Sharon Howard, senior vice president of sales and marketing with Sage Software Healthcare, said in a news release that the changes will come as no surprise to those who follow our industry. The CEO of our corporate parent mentioned our ongoing restructuring in his half-year report to investors.
Sage sells electronic health-record and practice-management software systems in the physician-office market, picture archiving and communication and record information systems for radiology departments, as well as claims-processing and data-analytics systems in the healthcare industry. -- by Joseph Conn
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