Northern California Medical Software Company to Lay Off 85 Employees to Help Reduce Losses
Officials at VantageMed Corp., a medical software company based in Rancho Cordova, this week announced plans to lay off 85 employees and eliminate 15 offices nationwide as part of an effort to restructure the company, the Sacramento Bee reports. The layoffs represent 30% of the 285-employee work force for the "troubled" company, which has reported losses each year since 1997. VantageMed, which sells billing, scheduling and medical records software to physicians, has a $62 million deficit and loses about $500,000 each month, according to VantageMed CEO Richard Brooks. Brooks said that he hopes the restructuring plan will "stop the loss." The layoffs mark the latest development in a "particularly rough" year for VantageMed. VantageMed's common stock last week dropped to the Nasdaq SmallCap Market. VantageMed must increase the company's share price -- 45 cents last Friday -- to $1 before Sept. 18 to remain on the Nasdaq exchange. In addition, VantageMed founder and former President Joel Harris and former Chair and CEO James Seiler resigned last month (Evans, Sacramento Bee, 6/15). For more iHealth & Technology stories, visit iHealthBeat.org, a new Web publication sponsored by the California HealthCare Foundation.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.