News in brief - Feb. 24, 2003

PT, x-ray boost orthopedic revenue - MedCath reports lower net income - GE sells PocketChart

PT, x-ray boost orthopedic revenue

Ancillary services are adding revenue to orthopedic group practices, and physical therapy appears to be the most popular source for physicians, says a survey by the Medical Group Management Assn. The association's "Cost Survey for Orthopedic Practices: 2002 Report Based on 2001 Data" listed diagnostic radiology as the highest source of ancillary revenue. The service generated a yearly average of $41,808 of net revenue, compared with $41,063 for physical therapy and $23,174 for MRI services.

MedCath reports lower net income

Charlotte, N.C.-based MedCath Corp. reported that its first quarter 2003 net income was down significantly from the first quarter of 2002, which the company blamed on expenses related to developing a new heart hospital.

MedCath, which builds and manages heart hospitals as joint ventures with physician owners, reported net income of $390,000, or 2 cents a share, in the first quarter compared with $5.3 million and 29 cents a share during the like period last year.

The company opened its ninth hospital, Harlingen Medical Center in Harlingen, Texas, at the southern tip of the state, in the first quarter. The company has four more hospitals in various stages of development, said David Crane, MedCath's president and CEO.

MedCath's revenue was $121.1 million in the first quarter, compared with $115 million in the first quarter of 2002.

GE sells PocketChart

CareTools Inc. has acquired PocketChart, a handheld-based electronic medical record software for physicians, from GE Medical Systems Information Technologies. Terms were not disclosed.

Seattle-based CareTools was founded last year by Thomas Giannulli, MD, an internist who originally created PocketChart in 1994. He sold the product through a company he had founded, Physix Inc. In 1999, he sold Physix Data Critical Corp., which was acquired by GE Medical in 2001.

PocketChart includes charting, coding, prescription writing and laboratory orders.