Dynamic restructures to beef up revenues and customer serviceLayoffs, new business units announcedDespite two consecutive quarters of profitability, HIS and PACS vendor Dynamic Healthcare Technologies isn’t willing to stand pat. The
Layoffs, new business units announced
Despite two consecutive quarters of profitability, HIS and PACS vendor Dynamic Healthcare Technologies isnt willing to stand pat. The company has reorganized into three product-oriented business units and dismissed or accepted the resignations of several members of its management team.
The new organization is designed to provide a single focus for the development, marketing, sales, and support of the companys information systems, which are now organized into product line divisions: Laboratory and Imaging, Pathology, and Radiology. This approach is expected to help streamline operations and enhance sales and customer response time, according to Dynamic president and CEO Mitchel Laskey.
In the past, we were organized by functional perspective, but now each group has its own sales/marketing personnel, among other things, he said. So at the end of the day, you end up selling what is deliverable, at a proper margin, because all operations go back to a single accountable person for each market segment.
Dynamic expects to save $2 million a year in operating expenses alone as a result of the new structure. A one-time charge of $525,000 related to the realignment will be recorded in the third quarter; the charge is associated with severance and termination benefits resulting from the termination and resignation of several employees, including Scott Waldrop, former senior vice president and COO; Michael Carlay, senior vice president, sales and marketing; and Linda Moline, vice president, consulting services.
The new business units are being headed up by Steven Akerson, vice president and general manager of the Laboratory and Imaging Group; Jonathon Fingado, vice president and general manager of the Pathology Group; and Michael Pomerance, vice president and general manager of the Radiology Group. Paul Glover continues in his role as vice president, finance and CFO, while Mary Lu Lander has assumed the position of vice president, corporate marketing and services.
R&D continues under the direction of vice president Brian Paige, remaining outside the business units in order to maintain continuity across products. In the past 18 months, Paiges team has made significant progress in developing and delivering Dynamics new client/server clinical information systems, including the RadPlus radiology information system, the PACSPlus system, the WebSight teleradiology system, and the CoPathPlus pathology system, Laskey said.
The restructuring announcement comes on the heels of two successful quarters for Dynamic, which struggled financially throughout much of 1998. Thanks to internal changes and an expanding market for its radiology and pathology products, however, the company expects to continue its upward progress throughout the rest of 1999, breaking even in the third quarter (due to the realignment) and showing additional revenue increases in the fourth quarter. Third quarter results will be announced at the end of October.
Dynamic, which is based in Lake Mary, FL, introduced its first dedicated PACS product in early 1997. Today, sales of its PACSPlus, RadPlus, and related radiology products account for about 35% of the companys business. Laskey expects that percentage will increase over the next yearin part because the market is growing, but also because of the companys ability to offer RIS/PACS integration expertise and enterprise-wide Web-based access to images and reports.
We are seeing increased sales across the spectrum in our RIS, PACS and WebSight products, Laskey said.