LabStat expenses prompt ADAC to shut down project

March 1, 1998

LabStat expenses prompt ADAC to shut down projectThe high cost of completing development on its LabStat laboratory information system has caused ADAC Laboratories to shut down the project, the Milpitas, CA, vendor announced last month. ADAC will

LabStat expenses prompt ADAC to shut down project

The high cost of completing development on its LabStat laboratory information system has caused ADAC Laboratories to shut down the project, the Milpitas, CA, vendor announced last month. ADAC will continue to support its installed base of LIS customers, but has no plans to enter the market for new LIS products.

ADAC gained access to LabStat through its 1995 acquisition of Community Health Computing, which had filed for bankruptcy five months earlier. ADAC pursued the acquisition as part of its strategy to expand its RIS business.

The costs of completing development of LabStat were a drain on the company, and eventually ADAC decided to pull the plug. ADAC's RIS business continues to perform well, however, and the company plans to keep its ADAC HealthCare Information Systems business in Houston.