Apache Medical Systems May Sell Off ‘Flagship’ Software
With Apache Medical Systems' patient database software "not [catching] on among hospitals," the company has decided to sell most of its products to Kansas City, Mo.-based Cerner Corp. in order to "bring an end to its financial troubles," the Washington Post reports. Apache signed a "nonbinding agreement" to sell the majority of its assets to Cerner, a "leading software provider" to the health care industry, for an undisclosed sum. The Post reports that Apache's sales are "plummet[ing]" and its stock is trading below 50 cents a share. Apache founder Bill Knaus said the poor sales are the result of the health care industry's "slow adoption of information technology." He added, "Very few hospitals have their information technology act together. The health care industry is far behind other industries in its use of information and information systems." Cerner said it intends to add Apache's programs to its information management systems, which are used by more than 1,500 health care organizations around the world. If shareholders approve the sale, the Post reports that Apache would "likely" change its name and enter another line of business (Chea, Washington Post, 2/15).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.