News in brief - July 7, 2003

HealthSouth's Scrushy wants immunity - Physicians deluged with drug queries - Misys buys Per-Se line - WebMD buys outsourcing vendor

HealthSouth's Scrushy wants immunity

Ousted HealthSouth Corp. chief Richard Scrushy has asked a House committee for immunity in exchange for testimony about widespread accounting discrepancies at the outpatient services giant.

But a spokesman for the House Committee on Energy and Commerce, which is investigating the alleged accounting fraud at HealthSouth, said in published reports that the committee had no intention of cutting a deal.

The panel gave Scrushy a June 25 deadline to turn over documents related to accounting practices at Birmingham, Ala.-based HealthSouth.

Federal investigators have accused HealthSouth and Scrushy of overstating earnings by $2.5 billion since 1994. At least 11 executives have agreed to plead guilty to criminal charges since allegations of fraud were first announced in March. Scrushy was fired, and the Securities and Exchange Commission is investigating him for alleged insider trading. No criminal charges have been filed against him.

Scrushy is still a director of HealthSouth, and on June 17 he filed a lawsuit accusing the company's board of excluding him from meetings and failing to provide him with financial and performance information.

Physicians deluged with drug queries

Primary care physicians are fielding an increasing number of questions about prescription drugs, and many have expressed concern that pharmaceutical companies are not keeping them informed about company messages to patients, according to a new survey conducted by Cap Gemini Ernst & Young.

Of more than 1,400 doctors surveyed worldwide, nearly one-third said patients had asked them to prescribe drugs about which they did not know enough or that were inappropriate for the patient's condition.

The survey, entitled "Prescriptions for the Smart & Lean Pharmaceutical Company," also found that more than one-third of 4,000 consumers queried are asking for specific brands of treatment from their physicians. While 69% said they were happy with the level of information they received from their physicians, 66% said they conducted their own research on their ailments and available drugs.

Misys buys Per-Se line

Misys Healthcare Systems has agreed to pay $30 million to acquire the computerized electronic record and physician order-entry software product line of Per-Se Technologies Inc.

Atlanta-based Per-Se Technologies said it divested its hospital software clinical product line because it derives most of its revenue from the administrative rather than clinical side of health care. It will use the proceeds of the sale for general corporate purposes, including debt reduction. A division of London-based Misys plc, Misys Healthcare sells physician practice management and electronic medical records software.

WebMD buys outsourcing vendor

WebMD Corp. has agreed to acquire Advanced Business Fulfillment Inc. for $110 million in cash and may pay up to an additional $150 million for the St. Louis-based company if certain requirements are met.

Advanced Business Fulfillment sells paid-claims communication services to health insurers and third-party administrators. WebMD sells electronic transaction processing services, physician practice management and electronic medical records software, and online health content.