News in brief - Nov. 7, 2005

CareFirst extends e-prescribing pilot - Hospital company gets buyout offer - Neoforma acquired by rival seller

CareFirst extends e-prescribing pilot

CareFirst BlueCross and BlueShield announced in October that it is extending its electronic prescribing program for another year.

The program was launched in August 2004, when CareFirst gave personal digital assistants to 500 in-network, high-prescribing physicians.

Under the program, the insurer will absorb the cost of the annual subscription fee for the 300 doctors who averaged 50 or more electronic prescriptions monthly. Doctors who failed to meet that criteria can keep the computer devices but will have to pay a fee if they want to continue prescribing electronically.

Hospital company gets buyout offer

Rural hospital operator SunLink Health Systems has received an unsolicited buyout offer from a London-based private equity group.

The Atlanta-based chain said Oct. 10 that North Atlantic Value LLP, which is part of a group of investors that owns about 16% of SunLink's stock, had offered to buy all outstanding shares for $10.25 apiece. The deal would be subject to due diligence and customary conditions.

With about 7.2 million shares, that would put a total value on the company of approximately $73.8 million.

SunLink, which currently operates seven community hospitals in four states, said in a press release that its management, board of directors and advisers would evaluate the offer.

Neoforma acquired by rival seller

Global Healthcare Exchange LLC, an online seller of medical supplies, announced Oct. 11 that it had agreed to acquire its struggling rival, Neoforma, for about $200 million. Under the agreement, shareholders except VHA and the University HealthSystem Consortium will receive $10 in cash for each share of common stock they own.

VHA, which owns 8.6 million shares or about 42%of Neoforma, will receive $10 for about 2 million shares and exchange the remainder for a 12% stake in GHX, in Westminster, Colo. UHC will sell 496,000 out of the 2.1 million shares it owns at $10 each and exchange the remainder for 2.9% of GHX's stock. GHX's acquisition of San Jose, Calif.-based Neoforma, which put itself up for sale in January, is expected to close in early 2006.