Olicon to focus efforts on its OEM customers

PACS firm Olicon Imaging Systems has decided to shift most sales efforts to OEM distribution opportunities with healthcare information systems firms, particularly with partner Shared Medical Systems. As part of this transition, 30% of the Aliso Viejo, CA-based company's sales staff was eliminated.

"Ultimately the players who will win in the PACS business will be those who have not interfaced but have integrated PACS and RIS," said Dick Paulsen, CEO. "We have done that with SMS."

Integration work between Olicon and SMS will be displayed by both companies at this year's Radiological Society of North America meeting, Paulsen said. In addition to the relationship with SMS, Olicon is working to add more HIS relationships, he said.

Some direct sales will still be performed, however, with emphasis on large radiology groups and imaging center networks, Paulsen said.

Rumors have also been swirling about a sale of the company's teleradiology archiving program (TAP), which allows customers to handle their long-term storage needs in off-site archives at an Olicon warehouse. When needed, the image is sent via teleradiology to the customer's workstation. The availability of TAP has been broadened to support DICOM-compatible workstations from other PACS vendors, a milestone that has sparked growing interest in the division, either for acquisition by another company or for marketing relationships, Paulsen said.

An offer to purchase the TAP division was made, and Paulsen brought it to the company's board of directors. The company has received many such offers, however, Paulsen said.