Du Pont to sell RIS business to Community Health Computing

June 15, 1994

Acquisition expands CHC's client base Film and PACS vendor Du Pont plans to sell its Houston-based radiologyinformation systems business to RIS/HIS vendor Community HealthComputing (CHC). While the deal makes sense for both companies,its

Acquisition expands CHC's client base

Film and PACS vendor Du Pont plans to sell its Houston-based radiologyinformation systems business to RIS/HIS vendor Community HealthComputing (CHC). While the deal makes sense for both companies,its announcement was untimely: Du Pont's public relations agencysent out a press release about the sale before either companywas ready to go public.

Du Pont acquired the Houston unit from Trinity Computing Systemsin 1991 (SCAN 3/13/91). The unit's products include the Linx MicroRadiology Manager (MRM) information system and PICSTalk medicalsoftware translation program, which allows radiology informationsystems to communicate with information systems elsewhere in ahospital. There are about 30 employees at the Houston facility.

Du Pont was successful in marketing MRM, but realized thatthe health-care industry is moving away from stand-alone departmentalapplications toward solutions that can be integrated into largersystems. Du Pont does not market an HIS.

Houston-based CHC's products include RadStat, a Unix-basedRIS; RadCare, an RIS using proprietary architecture; and otherintegrated departmental information systems. There are 41 RadStatand RadCare installations.

The acquisition will give CHC the opportunity to round outits line of RIS products. RadStat is targeted at high-end hospitals,while MRM is a modular system attractive to smaller facilities,according to Michael Cannavo, president of Image Management Consultantsof Winter Park, FL.

"The purchase allows CHC to break into hospitals wherethey haven't been before," Cannavo said.

CHC will also gain access to the installed base of MRM, whichstands at almost 200, according to Wendy Roloff, CHC's directorof corporate marketing. CHC will service MRM sites using personnelfrom the Houston unit and will try to convert older MRM sitesto CHC's existing systems.

"We hope to be their vendor of choice," Roloff said.

Despite the logic of the sale, the timing of its announcementwas a little off. Du Pont's PR agency faxed press releases aboutthe deal a week before the companies were ready to make a publicannouncement. Du Pont has since found a new agency, accordingto the company.

The deal is expected to close within 45 days subject to completionof due diligence.

In other CHC news, vice president and COO Johnnie W. Dominguehas been promoted to president and CEO. Domingue replaces IanG. Littlewood, who becomes chairman of the board.