PacifiCare Division to Acquire Assets of Handheld Computer Maker ParkStone
RxConnect Acquisition Corp., a division of PacifiCare Health Systems, agreed to acquire the assets of Ft. Lauderdale-based ParkStone Medical Information Systems, which makes handheld devices for electronic prescribing, for about $1.15 million in cash and stock at a bankruptcy court hearing on Monday, the Miami Herald reports. PacifiCare's bid was less than 2% of the nearly $65 million that venture capital firms invested in ParkStone. The only other bidders were ProxyMed, a health care transaction-processing services company based in Ft. Lauderdale, Fla., and an Ohio-based company called New Business International. ParkStone's bankruptcy lawyer, Michael Goldberg, said that the winning bid represented "market value" for ParkStone's assets but was much less than "substantial" acquisition offers the company received last year. ParkStone had hoped to reorganize after filing for bankruptcy protection in July but failed to raise additional capital. The company said in March that it had provided its handheld devices to 3,600 physicians. ParkStone, which employed as many as 225 workers at one time, reportedly has just "a few" employees remaining. The sale is scheduled to be completed Oct. 12 (Danner, Miami Herald, 10/2).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.