Associated Press Profiles Financial Turnaround of WebMD
The Associated Press yesterday profiled health information and transaction company WebMD, which posted a quarterly profit last week after two years of losses. The Associated Press in part attributes the turnaround of the company to the management of Chair and CEO Marty Wygod, who led efforts to reorganize the company. Wygod became CEO of WebMD in October 2000, after the company purchased his own business, Medical Manager. He spent 18 months on a campaign to reduce costs and restructure WebMD, and last week the company's three subsidiaries -- Envoy transaction services, Medical Manager practice management services and online portal WebMD Health -- for the first time reported an operating profit. WebMD reported a profit of $4.5 million for the third quarter on revenue of $200 million. Wygod predicts 30% annual growth for WebMD Health, which serves more than 16 million consumers each month. The company's Envoy business, which processes 2.4 billion transactions per year, also could benefit from HIPAA compliance deadlines, according to James Kumpel, a health care informatics specialist at Raymond James (Johnson, Associated Press, 11/10).
For more iHealth & Technology stories, visit iHealthBeat, a new Web publication sponsored by the California HealthCare Foundation.