News in brief - Feb. 20, 2006

Thief takes hospital system records - Claims clearinghouses combine - Healthline raises $14 million - Surgery center companies merge

Thief takes hospital system records

Providence Health System in Portland, Ore., on Jan. 25 notified 365,000 patients that their records were stolen from an employee's car, The Oregonian newspaper reported. The theft occurred on Dec. 31, 2005, after a thief smashed a car window, seizing computer disks and magnetic tapes containing the data of patients who received home health services across Oregon and Washington.

At press time, the Oregon Attorney General had received six unconfirmed accusations of identity theft linked to the Providence records. A class-action lawsuit has been filed against the health system.

Providence initially told affected patients to check with credit-monitoring services to determine if they were affected. But now the health system has offered to pay patients for certain credit-protection services, including ongoing credit monitoring.

The health system, which previously directed employees to store disks and tapes in their homes for emergency back-up, has begun sending backup files to a secure off-site, The Oregonian reported.

Claims clearinghouses combine

Misys Healthcare Systems announced Feb. 1 that it acquired Payerpath Inc., an Internet-based claims clearinghouse in Richmond, Va., for $49 million in cash.

Misys, based in Raleigh, N.C., will combine its claims clearinghouse, M. Transaction Services, with Payerpath's and will operate the newly combined business under the Payerpath name. Misys also sells practice management and electronic medical records software to physicians.

Healthline raises $14 million

Healthline Networks Inc., San Francisco, which owns Healthline, a medical search engine launched in 2005, has raised $14 million in venture capital. VantagePoint Venture Partners, Reed Elsevier Ventures, Mitsui & Co. Ltd. and JHK Investments were among those making investments.

Surgery center companies merge

Dallas-based United Surgical Partners International Inc., which last month announced the acquisition of nine ambulatory surgery centers in the St. Louis market, said it also has acquired another surgery center company. The price was not disclosed.

The company, which has ownership interest in or operates 104 surgery centers, announced an agreement to purchase Surgis Inc., a private ambulatory surgery company based in Nashville, Tenn.

Surgis, which was founded in 2001, generally forms ownership partnerships with local physician groups or health systems. It operates 22 facilities and has several more under development, and it provides endoscopy services for nearly 40 hospitals around the country.

United Surgical Partners said it plans to complete the Surgis acquisition this spring.