Fonix secures six new PowerScribe contracts

Fonix secures six new PowerScribe contracts

Dictation software developer Fonix of Salt Lake City last month signed contracts with six U.S. hospitals for its PowerScribe Radiology speech recognition/dictation system. Fonix licensed the system to Shands Medical Center in Gainesville, FL, Community General Hospital and Lawrence Hospital in NY, Griffin Hospital in Derby, CT, Citrus Valley Medical Center in Covina, CA, and Ingalls Health System in Cook County, IL. The contracts are worth about $824,000, and Fonix expects to gain additional revenues from ongoing service and maintenance agreements.

The company also announced that it has established a 19-person direct sales and service team in its Healthcare Solutions Group to focus on the PowerScribe product line. Previously part of PowerScribe's North American distributor, The MRC Group, the team captured sales contracts in 1998 totaling $4.1 million. Fonix expects to gain about $2 million of these sales, and will benefit from annual maintenance and service agreements that arise from these and future contracts, according to the Salt Lake City-based firm. Fonix continues to develop PowerScribe Emergency Medicine System and has placed the product in beta sites, according to the company.

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