Will Hill-Rom Ruin Welch Allyn when they Buy them?

Note from Pat:
I love Welch Allyn and hate to see them on the brink of destruction.  Hill Rom is a dominant bed company.  They have proven to me that they cannot effectively manage companies in the greater healthcare arena.  They ruined MediqPRN.  Their acquisition of WatchChild was an unmitigated disaster.  I firmly believe that they will continue their pattern and make decisions that will cause much of Welch Allyn’s brain-trust to flee and their customer base to jump ship for more stable companies, is spite of the awesome technological releases of late.  My opinion only.   Pat

Hill-Rom to acquire Welch Allyn in $2 billion deal

(Story updated at 10:35 a.m. ET)

Hill-Rom, a Chicago-based medical equipment manufacturer, has announced it will acquire Welch Allyn, a Skaneateles Falls, N.Y.-based manufacturer of diagnostic and patient-monitoring equipment.

The $2.05 billion deal is expected to diversify publicly owned Hill-Rom’s portfolio, expand its international footprint and allow the capital equipment supplier to gain more revenue outside of the capital spending cycle. Welch Allyn, a family-owned company, has a leading presence in physicians’ offices, an area that will be important for Hill-Rom as more care shifts to outpatient settings.

The deal is expected to close before Sept. 30. Hill-Rom CEO John Greisch will serve as president and CEO of the combined company and certain members of Welch Allyn’s senior management will join the new, combined company.

The combined company is expected to be worth about $2.6 billion in revenue and be over 10% accretive to Hill-Rom’s fiscal 2016 adjusted earnings per share, and meaningfully higher thereafter, officials said. The company reaffirmed its guidance for the third quarter and fiscal 2015, expecting revenue growth of 13% to 15% in the quarter and 10% to 11% for the year.

Hill-Rom stock opened Wednesday at roughly $55.09 a share following the news, up $2.71, or 5%, from the closing price on Tuesday.

Annual cost synergies of at least $40 million are expected to come from the deal by fiscal 2018, with additional revenue synergy opportunities, Hill-Rom executives said. The company is expected to have roughly $110 million to $120 million in full-year ongoing capital expenditures.

Much of Hill-Rom’s revenues are tied to hospitals’ long-term capital-spending cycle for products such as beds, patient-handling equipment, furniture and stretchers. The life cycle for Welch Allyn’s products—such as thermometers, blood pressure cuffs and other point-of-care diagnostic equipment—is much shorter and is therefore expected to provide the combined company with a more steady revenue stream.

Welch Allyn will make up about 26% of the company’s pro forma revenue, which, combined with Hill-Rom’s existing surgical equipment and rental revenue streams, should provide the company with steady cash flow, Greisch said during a conference call. Acute-care capital equipment will still account for 31% of the combined company’s revenue.

Geographically, Welch Allyn has presence in Hill-Rom’s strongholds of France and Germany, as well as the U.K., but otherwise has limited international infrastructure, Greisch said. Hill-Rom believes it can accelerate international growth for Welch Allyn’s products; the combined company is expected to earn about 63% of its revenue from North America, 21% from Europe and 16% from emerging markets and other regions.

Adam Rubenfire

Adam Rubenfire covers breaking healthcare news and supply chain for Modern Healthcare. His beat responsibilities include capital equipment, group purchasing organizations, food service and general medical supplies. His work has appeared in the Wall Street Journal, Automotive News and Crain’s Detroit Business. He has a bachelor’s degree in organizational studies from the University of Michigan. He joined Modern Healthcare in 2014.

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Adding a New Category

Last week, I attended the AAMI annual Meeting in Denver Colorado.  While there, I was discussing this website with various people.  The idea came up that in addition to exposing the Dirt in the HTM field, we should highlight the good companies.  So as of today, I am adding a new category – GOLDEN NUGGETS.  This tag will be assigned to any post that highlights a company that exemplifies good policies and practices relative to taking care of their customers.  Please submit your GOLDEN NUGGETS.

Pat

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Which Companies Don’t Want To Share Service Manuals?

By Patrick Lynch

One of my favorite websites is Frank’s Hospital Workshop. It is chocked full of videos and written material that covers the scope of medical equipment. The material ranges from educational offerings, operator’s manuals, service manuals and some do-it-yourself test equipment. But what I want to focus on are the service manuals. Frank has a pretty good selection, but I notice that many of them are not downloadable and bear the message “Download prohibited by name of company.”

I decided to go through Frank’s entire service manual library and record the names of all of the manufacturers who will not share their manuals. What you decide to do with this information is your own business. This is what I found:

tables 1 Patrick Lynch

tables 2 Patrick Lynch

– See more at:

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Siemens Pays $5.9M to Settle Overcharging Claim

Siemens pays $5.9 million to settle claims it overcharged U.S. government for imaging equipment

May 15, 2015
by Lauren Dubinsky , Staff Writer
Siemens Medical Solutions USA, Inc. has agreed to pay a $5.9 million settlement to resolve allegations that it overcharged the U.S. government for medical imaging equipment.Between February 2002 and December 2008, the U.S. Department of Defense (DoD) and the Defense Supply Center of Philadelphia (DSCP) entered into an agreement with Siemens called the DSCP Contract. Through that contract, those organizations — as well as the U.S. Department of Veteran Affairs (VA) — purchased medical imaging equipment and support products.

Our primary focus is International wholesale distribution of Pre-owned Medical Equipment. We specialize in Respiratory Equipment, primarily adult and infant ventilators. All major OEMs supported. Call 703-589-0369.

The government is claiming that Siemens did not provide the DoD with the largest discount for certain purchases under the contract. Instead, it alleges that Siemens gave the biggest discount to a private or commercial customer that purchased a similar product.

The government also states that Siemens withheld information about overcharging. According to a statement from the DoD, when the overcharging was initially revealed, Siemens “issued mass discounts on multiple occasions to address the mis-billing on a prospective basis,” but that only further concealed it from the government.

The VA was also overcharged for certain orders made under the contract that had been converted to a newer model, according to the government’s claim. Some of the orders did not receive the larger discount that pertained to the newer model.

Despite paying the settlement, Siemens “denies any wrongdoing,” says Lance Longwell, director of corporate communications at Siemens. He told DOTmed News in a statement that the company made the payment to prevent further expenses and distractions.

Longwell also stated that Siemens has improved its processes for monitoring government compliance over the years and continues in its unwavering commitment to its customers, “including important government customers, and adherence to all applicable laws and regulations.”

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10 Corporations that are not paying their fair share (includes GE)

Bernie-Sanders-Corporate-Tax-4001

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May 12, 2015 · 2:09 pm

Apple Watch is Based on “Planned Obsolescence”

Company breaks open Apple Watch to discover what it says is ‘planned obsolescence’

Tech website iFixit found that Apple had ensured that the technology would eventually fall out of use, forcing customers to buy new products

Jamie Campbell

Saturday 25 April 2015

Tech repair and upgrade website iFixit has claimed that the Apple Watch won’t be a long term option for those hoping to continually upgrade their device.

CEO Kyle Wiens has always been a vocal critic of Apple’s obstructive policies on third parties fixing and upgrading iOS devices and his company provide an online “free repair guide for everything” where methods to repair or improve electronic devices are posted.

Upon the release of the Apple Watch, Wiens’ company immediately got down to the business of (iBuffs look away now) tearing the brand new product open and evaluating it from the inside.

Their prying work has discovered that the “overall device construction limits further repair options”.

“The S1 SiP [internal system in package] is encased in resin, and is further held in place by a mess of glue and soldered ribbon connectors. In short, basic component replacements look nearly impossible.”

The s1SiP is custom-designed Apple technology that integrates a number of subsystems like the chip into one package. It is encased in resin to increase its durability.

Read more:
iFixit: A million little pieces
Apple watch goes on sale
Apple watch: First version unlikely to be a measure of success

Therefore, according to iFixit, the Apple Watch has intentional obsolescence built into it as it will become technologically redundant as processors become faster and apps are supported only by the newest models.

This tactic is known as ‘planned obsolescence’ and has been an accusation levelled at Apple for a number of years.

The current operating system for iPhones, for example, only supports some of the newer models and it appears that the Apple Watch will find itself in a similar position.

This revelation may trouble users, who will have paid £479 for the standard model or even up to £9,500 if they bought the 18-Carat Rose Gold Case edition.

The exploratory work by iFixit revealed that the device includes a 2-5mAh battery, compared to a 300mAh battery found in competing devices, like the Motorola Moto 360 and Samsung Gear Live. The device also includes an ARM Cortex mj3-based touchscreen controller.

The research also interestingly found that, although Apple has promoted the device’s heart rate monitoring feature, it is actually bundled with a plethysmograph that could act as a pulse oximeter. This could allow users to measure their own blood oxygen levels.

Apple has never commented on claims that this is policy that they pursue.

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2015 MacBook is the least repairable yet

Apple By Matthew Humphries Apr. 15, 2015 11:28 am

Apple has demonstrated repeatedly that it does not want owners of its hardware attempting to fix it themselves. That’s their right, but the 12-inch 2015 MacBook has taken that unrepairablity outside of Apple’s own tech department to a new level.

iFixit has carried out its usual teardown of the newest MacBook on the market, and the verdict is basically: don’t even bother trying to repair this laptop yourself. It scored 1 out of 10 on their scale, and is a case filled with proprietary screws and a lot of adhesive.

 

We’ve already seen how the MacBook is mostly batteries inside the case, but the terraced battery system isn’t just placed snugly, it is firmly glued to the lower casing. The central battery is even placed in a well and glued in place making it very difficult to remove if necessary. The result is batteries that have to be forced out and are left covered in glue.

Then we have the new butterfly mechanism keyboard. It has a backing secured with adhesive that once removed reveals two proprietary pentalobe screws per key. That’s 83 screws total just in the keyboard. iFixit also has some concerns about that butterfly mechanism as it is very thin and uses a plastic hinge. How well will that hold up over time?

Apple has been criticized for only including a single USB port to handle both power and peripheral connections. It is going to get a lot of use and abuse, but that doesn’t mean it’s easy to replace if damaged. Apple has secured it underneath the display bracket, meaning a lot of disassembly will be required if it breaks.

 

Then finally, and as expected, the logic board has everything soldered on to it, so no RAM or flash memory upgrades, and if something goes wrong you’ll need a new board.

If you’re purchasing this MacBook and happen to be accident prone or really couldn’t handle a costly repair in the near future, then you need to do what Apple really want you to do anyway: also purchase an AppleCare Protection Plan.

CLICK HERE to read the complete story and see the photos

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