News in brief - April 28, 2003

Surveys: Online pharmacies lacking - IDX sells transcription subsidiary - New HIPAA site for physicians - Growth still expected in CABG - MedCath issues profit warning

Surveys: Online pharmacies lacking

Two studies have concluded that consumers buying medications from Internet pharmacies could be putting themselves at risk because many of the pharmacies provide inadequate information or are unlicensed.

In a study published in Quality and Safety in Health Care, Australian researchers found that 40% of the 104 online pharmacies they surveyed did not offer information about using medications safely and effectively. The researchers surveyed pharmacies in about a dozen countries, including the United States, United Kingdom and Australia.

In a separate survey, PharmacyChecker.com LLC, a White Plains, N.Y., rating firm, found that 50% of the 12 online pharmacies it surveyed were not licensed. The survey also found that 33% of the pharmacies did not have a privacy policy and did not require an original prescription.

IDX sells transcription subsidiary

IDX Systems Corp., a Burlington, Vt.-based maker of physician practice-management software, sold Edix, its transcription subsidiary, to Total eMed Inc. for $64 million. The transaction is expected to close by July 1. Total eMed, of Franklin, Tenn., and Edix, of St. Petersburg, Fla., offer electronic medical transcription services to physicians.

New HIPAA site for physicians

The Workgroup for Electronic Data Interchange and the Council for Affordable Quality Healthcare have launched a Web site (www.wedi.org/snip/caqhimptools/) where physicians can track the progress of insurers in meeting an upcoming deadline for HIPAA electronic health care transactions.

Under the Health Insurance Portability and Accountability Act, physicians, hospitals, insurers and claims clearinghouses must use national data formats for claims and other health care transactions by Oct. 16.

Growth still expected in CABG

Even with the advent of drug-eluting stents, sales of coronary artery bypass graft surgery products are expected to grow from less than $700 million in 2002 to more than $900 million in 2008, according to new research by Medtech Insight, a Cleveland-based medical device research company.

The report, entitled "U.S. Opportunities in Surgical Coronary Revascularization," says loss of sales due to drug-eluting stents will be offset by a declining demand for traditional cardiopulmonary bypass products.

The report includes analysis about dozens of health care companies, including Abbott Laboratories, Edwards Lifesciences, and Johnson & Johnson. A description of the report and contents is available online (www.medtechinsight.com/ReportHRI051.html).

MedCath issues profit warning

MedCath Corp., the Charlotte, N.C.-based company that builds and manages heart hospitals as joint ventures with physicians, warned investors earlier this month its 2003 fiscal results would be lower than previously estimated.

It plans to announce revised estimates when it releases its second-quarter earnings report May 8.

MedCath blamed its need for revised estimates on reduced expected revenues at three of the 10 hospitals it owns. It also said it more frequently has been using cardiac defibrillators, an expensive device relative to its reimbursement.