Norland is enlarging its U.S. organization, following the bone densitometer company's acquisition last year by Novatech Management (SCAN 5/23/90). Novatech is a New York health-care investment company partially owned by Albert S. Waxman, founder and former chairman of Diasonics. Waxman is chairman of Norland, which is based in Fort Atkinson, WI.

The expansion of Norland's operations falls under the supervision of John I. Mankowich, president and CEO. Mankowich joined the firm last September. He was previously vice president of worldwide sales and service for ultrasound vendor Interspec. Mankowich hired Tom Regan, another ex-Interspec employee, as vice president of sales last month. Regan had been director of sales at the ultrasound company.

Norland's vice president of marketing arrived through a connection to the chairman. Joel Blank, a former Diasonics vice president, initially served as a consultant to Waxman after the Norland acquisition, Mankowich said.

Regan will be in charge of an expanded U.S. sales effort. Norland hired three sales representatives along with the vice president last month and is in the process of bringing on a fourth. The company will sell its dual-energy x-ray absorptiometry (DEXA) systems primarily through direct sales representatives, although it will maintain a few select dealers, he said.

U.S. sales of DEXA systems are picking up as more Blue Shield and Blue Cross organizations begin to reimburse densitometry exams, Mankowich said.

"Forty percent to 50% of the Blues are currently reimbursing," he said. "In California, they are reimbursing for baseline examinations." Baseline exams are given women during menopause in order to help gauge changes in bone mineral density with postmenopausal screening.

Medicare does not reimburse DEXA exams.

Most of Norland's U.S. sales are to rheumatologists, endocrinologists and ob/gyns. While radiologists appear interested in the systems, they seem to be holding off acquisitions until the reimbursement issue is more clearly settled, he said.

Although DEXA competitor Hologic has indicated that international sales of densitometers are sagging (SCAN 2/13/91), Norland has experienced continued growth of sales in Europe and other markets, Mankowich said.

Picker International sells Norland densitometers in Germany. A group of distributors handles other European national markets. Norland has a European subsidiary, Norland Scientific Instruments, based in the Netherlands. NSI will move from its headquarters in Weesp to a larger facility in Baarne within the next month, he said.

BRIEFLY NOTED:

  • Du Pont Diagnostic Imaging agreed to acquire PICSTalk, a medical software integration business, from Trinity Computing Systems of Houston last month. The purchase should be completed by April, according to Jerome M. Smith, vice president and general manager.

    PICSTalk translates transmissions between different types of computer systems in a hospital. Integration of hospital and departmental information systems has been retarded by the utilization of different types of operating systems and data formats. Du Pont will use the integration system to improve communications between its radiology information system, Linx Micro Radiology Manager, and other hospital computer systems.

    "We view the radiology information system as a base for the future of electronic imaging. This acquisition strengthens our electronic imaging product line by integrating these (RIS) systems with the hospital's information systems," Smith said.

  • Medical Imaging Centers of America nearly doubled consolidated revenues in fiscal 1990 (end-December). San Diego-based MICA's revenues rose 95% from $40 million in 1989 to $78 million. Net income increased 54%, from $4 million in 1989 to $6 million (see graph). The bulk of MICA's business is in the provision of fixed-site and shared medical imaging services.

    "With outpatient revenues expected to account for more than half of hospital revenues by the year 2000, MICA is well positioned for the `90s," said Antone J. Lazos, chairman and CEO.

  • Net revenues increased 41% for Health Images of Atlanta in 1990 (end-December), from $32 million in 1989 to $45 million. Net income at the MRI center company rose 28% for the year from $2.27 million to $3 million (see chart). Most of HI's revenue growth came from patient services rather than its MRI equipment maintenance business. Net patient service revenues were up 52% for the year (to $26 million), compared to a rise of 4% in engineering revenues (to $5.2 million).

  • Increased demand for Lunar's DPX-L x-ray bone densitometers in both Europe and the U.S. was credited with the 32% boost in company revenues in the second quarter (end-December) of fiscal 1991. Lunar revenues rose from $3.4 million in the second quarter of 1990 to $4.5 million during the same period in 1991. Net income jumped 52% from $559,000 in the second quarter of 1990 to $849,000 this year.