The chief operating officer of CSC Health says that the acquisition of iSoft by CSC creates an international powerhouse, combining a leading health software company and leading systems integration firm.
Andrea Fiumicelli, until Friday the chief executive of iSoft, told eHealth Insider that the acquisition removed the financial uncertainties that had hobbled the company.
“The company is a great business and profitable but the financing wasn’t right. After the IBA era we just had too much debt.”
In an interview to mark the completion of CSC’s acquisition of iSoft, Fiumicelli said the level of debt carried by by company was the most difficult issue that it had faced in the past 24 months. He said this had “threatened to undermine our ability to deliver innovation”.
The considerable financial resources and capabilities of CSC – which had revenues of $16 billion last year - added to iSoft’s domain expertise, clinical knowledge and intellectual property would create a new type of “highly credible firm”, he argued.
“There will be very few global companies in the world to bring about this proposition, bringing together the IP and capabilities of a leading clinical software firm with a major systems integrator and services firm.” CSC has stated the deal is international and strategic rather than UK focused.
Fiumicelli said the axe wasn’t about to fall on the depleted iSoft workforce. “I announced today internally to the iSoft organisation that in our first year we will be arranged in the way we are today. There will be no changes in senior management.”
He added: “CSC said when they made the offer because of the IP of iSoft and that means the people.” NHS customers would have the same point of contact as they had previously, he added.
Sheri Thureen, CSC’s recently appointed president, UK healthcare, will continue to lead on negotiations over a new deal for the North, Midlands and East of England, where CSC has been trying to implement iSoft’s Lorenzo electronic patient record as part of the National Programme for IT in the NHS.
Fiumicelli was reluctant to be drawn on the implications of the sale for CSC’s renegotiation of its £3 billion NPfIT contracts, but said iSoft’s purchase by CSC would be good news for NHS customers.
“Within the NPfIT the same commitment to Lorenzo remains, and the other products we are contracted to deliver to the national programme.”
Fiumicelli added, however, that as well as additions there would inevitably be an integration of the iSoft and CSC health portfolios, and that this would result in rationalisation and some products being retired. “Definitely yes, the portfolio will grow and change scale.”
He added: “Outside the UK national programme I also hope we can demonstrate and provide value. Both companies will be able to deliver an end-to-end value proposition. That could be a new business deal, a full implementation or a journey.”
Together, he said, the two companies would be able to provide products and services that will enable the delivery of the business processes and clinical pathways required for integrated care.
“We expect that the reforms re-shaping the NHS will mean that clinical processes will go beyond a typical hospital or boundaries of primary care.”
Other opportunities would lie around helping deliver efficiencies from the healthcare economy and supporting the outsourcing of business and clinical care.
© 2011 EHealth Media.
