Management Health Solutions

October 19, 2010

Contact:
info@mhsinc.com
888-647-4621

Management Health Solutions Acquires Hospital Inventories Specialists

Combined Company Positioned as Leading Mobile Supply Chain Software and Inventory Management Solutions Provider to U.S. Hospitals

FOR IMMEDIATE RELEASE:

Fairfield, CT – October 19, 2010 | Management Health Solutions (“MHS”), a growing healthcare information technology organization that provides supply chain software and business solutions for hospitals and healthcare systems nationwide, announced today that it has acquired Hospital Inventories Specialists (“HISI”), a leading provider of inventory management solutions and analytical services founded in 1982. With the acquisition, MHS will nearly double its customer base and market share, and offer clients a larger repertoire of analytical tools, additional benchmark data and deep healthcare domain expertise.

“The acquisition of HISI is a major step for MHS,” said Bill Zierolf, President and Chief Executive Officer of MHS. “We are buying an established and recognized industry player that will appreciably enhance the supply chain software and optimization services that MHS has provided to the US healthcare industry. Together, we'll be developing and releasing the next generation of supply chain operations tools, Optimal Inventory Control (“OPTIC”) 3.0, to make managing the receipt, flow and charging of clinical supplies much more efficient.”

The acquisition significantly expands MHS’ industry presence. The combined entity will have approximately 1,000 hospital clients nationwide, doubling its client base and considerably expanding its geographic footprint. MHS will increase its number of employees and more than double its inventory valued to more than $5.0 billion from $2.5 billion. As a result of the transaction, MHS will serve approximately 20% of U.S. hospitals.

“The market opportunity and potential for growth is tremendous,” continued Zierolf. “The majority of hospitals across the United States have yet to implement integrated point-of-use supply chain software, content management solutions and optimization best practices for tracking, managing, ordering and analyzing the flow and consumption of clinical supplies. Millions of dollars are wasted annually through overstocking, expired inventory, and last minute, overnight resupply. Our flagship product, OPTIC, addresses these needs and helps reduce cost and improve patient safety through increased visibility.”

HISI’s vast clinical supply expertise, particularly in the area of pharmacy inventory and analytics, will give MHS unparalleled insight into hospital supply chain activities and decisions with valuable data and trending information to support current and future benchmarking and diagnostic tools. MHS already regularly provides benchmarking and analytical tools to its clients, giving them considerable insight into supply chain operations improvements. The addition of HISI resources will boost those initiatives.

“Bringing these two companies together makes perfect sense,” said Martin C. Wein, Principal and President of HISI. “The improvement in supply chain management that MHS will bring to a greater cross-section of the U.S. healthcare industry will not just reduce overall cost but improve patient safety as well.”

“We believe HISI’s customers will be impressed with MHS’ level and quality of service and its technological edge in serving health systems nationwide,” said Frank Grande, Principal and Chief Operations Officer of HISI.

The HISI transaction follows MHS’ recent acquisition of AtPar Inc., a leading software development company, which provides point-of-use enabled applications and enterprise software that automate product tracking in all functional areas of the supply chain, from the loading dock to clinical areas. With this set of applications, hospitals can optimize their flow of supplies, automate reorder processes and preference cards, maintain PAR levels, and satisfy clinical needs and requirements to deliver optimal patient care.

“With full integration to all the leading Material Management Information Systems, our point-of-use mobile software applications provide unparalleled visibility for supply chain executives,” said Mike Ferris, Co-Founder and Executive Vice President of Operations for MHS. “Integrating software and professional services to independently serve our national client base is MHS’ sole focus as a company.”

About Management Health Solutions

Management Health Solutions (“MHS”) is a growing healthcare information technology organization that provides integrated mobile supply chain software applications, content services and professional service solutions to hospitals and healthcare systems nationwide. The Company provides hospitals with the software that manages the flow of supplies from the loading dock to the point-of-use, automating reorder, PAR management, replenishment and hundreds of other processes. Combined with our professional services and optimization solutions clients gain better visibility into operational trends, data, and benchmarking activities. MHS’ services and technology result in dramatic improvements in a hospital’s supply chain management and patient care while improving cost management and profitability. For more information, visit mhsinc.com

About OPTIC

Optimal Inventory Control (“OPTIC”) is a powerful suite of services and enterprise software applications that provide hospitals with the resources, processes and technology they need to completely automate and control their complete supply chain, from the loading dock to clinical areas. OPTIC draws upon the entire spectrum of MHS’ supply chain consulting expertise, combining advanced software applications, superior content benchmarking and analysis, and MHS’ project management, service and support to create a comprehensive supply chain solutions package for hospital administrators. OPTIC enables hospitals to reach optimal inventory levels, resulting in dramatic improvements in patient care, revenue recognition and cost management.

Contact

Kris Walsh

Management Health Solutions
Telephone: 888-647-4621 x750
Email: kwalsh@mhsinc.com

PRESS COVERAGE:

Management Health Solutions buys inventory management company

By Brendon Nafziger

The emotionally uplifting and intellectually captivating ceremony occurred during National Healthcare Resource & Materials Management Week.

Supply chain software company Management Health Solutions said Tuesday it bought Hospital Inventories Specialists, a 28-year-old inventory management and analysis company.

Privately held MHS did not disclose terms of the deal.

As a result of the purchase, Fairfield, Ct.-based MHS will serve around one-fifth of U.S. hospitals, the company said, and its inventory's value will double to nearly $5 billion.

"The acquisition of HISI is a major step for MHS," Bill Zierolf, president and CEO of MHS, said in prepared remarks. "We are buying an established and recognized industry player that will appreciably enhance the supply chain software and optimization services that MHS has provided to the U.S. health care industry."

Zierolf said the two companies would work toward releasing version 3.0 of Optimal Inventory Control, MHS' flagship supply chain software suite. MHS has had a busy year: In April, MHS bought AtPar Inc., a maker of tracking software.

Supply Chain Firm Buys More Expertise

By Joseph Goedert

Hospital supply chain software vendor Management Health Solutions has acquired Hospital Inventories Specialists, which provides on-site inventory management services, for an undisclosed sum.

Tampa, Fla.-based Hospital Inventories Specialists offers pharmacy, supply, instrument, asset and non-itemized auditing and data analytics services. The acquisition expands Fairfield, Conn.-based Management Health Solution's suite of analytics software and brings additional benchmark data and professional expertise. It also nearly doubles the vendor's client base to about 1,000 U.S. hospitals.

More information is available at mhsinc.com and hisi.com.

Management Health Solutions Buys Hospital Inventories Specialists

By Luisa Beltran

Management Health Solutions, a portfolio company of Enhanced Equity Management, has acquired Hospital Inventories Specialists. Financial terms were not announced. MHS, of Fairfield, Conn., is a hospital supply chain services provider. Tampa, Fla.-based Hospital Inventories provides inventory management services. Enhanced Equity is a New York PE firm.

Management Health Solutions Buys Hospital Inventories Specialists

By Mohammed Aly Sergie

Management Health Solutions Inc., a supply chain management provider backed by growth equity firm Enhanced Equity Fund LP and Radius Ventures, said it will double its customer base with the acquisition of Hospital Inventories Specialists.

Bill Zierolf, the president and chief executive of MHS, said the company now serves 1,000 hospitals, or about 20% of U.S. hospitals, including large operators such as nonprofit Kaiser Permanente, Cleveland Clinic, New York-Presbyterian Healthcare System, Health Management Associates Inc. and HCA Inc.

The value of inventory that MHS handles, which determines the pricing of its services, has doubled to $5 billion. Zierolf declined to disclose the value of the acquisition or reveal revenue figures. He said both companies provide similar inventory services, but MHS sells additional technology which tracks the flow of supplies from the dock and throughout the hospital.

MHS, of Fairfield, Conn., provides software-as-a-service technology which manages hospital inventory, content and services. Zierolf said the company oversees inventory from "the loading dock to the doctor's hand," which saves hospitals 8% to 10% of their purchasing costs.

Enhanced Equity led a $7 million round of Series B financing in April for MHS to fund its acquisition of mobile technology company AtPar Inc. MHS previously raised a $5 million Series A in 2008 from Radius and a $2 million debt round last year from Eastward Capital Partners.

Zierolf said MHS will focus on mining more growth from its current customers by signing clients to multiple products and services. "We probably would do a debt financing next spring" to fund expansion, he added.

Private equity firms have been drawn to health-care services companies. This month, Emdeon Inc., a provider of health-care payment systems that is backed in part by General Atlantic LLC and Hellman & Friedman LLC, completed the $260 million purchase of Chamberlin Edmonds & Associates Inc., which helps hospitals with medical reimbursements, from Charterhouse Capital Partners, MTS Health Investors LLC, Highlander Partners LP and management.

And document processing company LaserNet was recently acquired by Apex Print Technologies, a Tonka Bay Equity Partners LLC portfolio company.

New York-based Enhanced Equity closed its second fund, Enhanced Equity Fund II, which is focused solely on health-care services, in June at $380 million. Reach Enhanced Equity at 212-207-3385, Radius Ventures at 212-897-7778.

Management Health Solutions buys analytics company

Posted: October 19, 2010 - 11:00 am ET

Supply-chain information technology and services provider Management Health Solutions has acquired Hospital Inventories Specialists, a provider of inventory management and analytics software and services, according a news release from Management Health. Terms of the deal were undisclosed.

Read more in 30 minutes at ModernHealthcare.com and in Health IT Strategist.

Management Health Solutions buys analytics company

Supply-chain information technology and services provider Management Health Solutions, Fairfield, Conn., has acquired Hospital Inventories Specialists, Tampa, Fla., a provider of inventory management and analytics software and services, according to a Management Health news release.

Terms of the deal were undisclosed.

According to the release, the purchase will "nearly double" Management Health Solutions' customer base to about 1,000 U.S. hospitals and will make available to existing MHS customers "a larger repertoire of analytical tools, additional benchmark data and deep healthcare domain expertise."

Management Health grows with new acquisition

Fairfield-based Management Health Solutions, a health-care information technology company, bought Hospital Inventories Specialists, an inventory management and analysis company.

With the acquisition, Management Health Solutions will nearly double its customer base and market share and offer clients a larger repertoire of analytical tools, additional benchmark data and health-care domain expertise, the company said. The companies did not disclose the purchase price.

"The acquisition of HISI is a major step for MHS," said Bill Zierolf, president and chief executive officer. "We are buying an established and recognized industry player that will appreciably enhance the supply-chain software and optimization services that MHS has provided to the U.S. health-care industry. Together, we'll be developing and releasing the next generation of supply-chain operations tools, Optimal Inventory Control 3.0, to make managing the receipt, flow and charging of clinical supplies much more efficient."

The acquisition significantly expands the industry presence of Management Health Solutions. The combined entity will have about 1,000 hospital clients nationwide, doubling its client base and considerably growing its geographic footprint. Management Health Solutions will increase its number of employees and more than double its inventory valued to more than $5 billion from $2.5 billion. As a result of the transaction, the company will serve roughly 20 percent of U.S. hospitals.

The Hospital Inventories Specialists' transaction comes after the recent acquisition by Management Health Solutions of AtPar Inc., a leading software development company, which provides point-of-use enabled applications and software that automate product tracking in all areas of the supply chain, from the loading dock to clinical areas. With this set of applications, hospitals can optimize their flow of supplies, automate re-order processes and preference cards, and satisfy clinical needs and requirements to deliver optimal patient care, the company said.

"With full integration to all the leading material management information systems, our point-of-use mobile software applications provide unparalleled visibility for supply-chain executives," said Mike Ferris, co-founder and executive vice president of operations for Management Health Solutions. "Integrating software and professional services to independently serve our national client base is MHS' sole focus as a company," he said.

Management Health Solutions, Inc. acquired Hospital Inventories Specialists

Management Health Solutions, a growing healthcare information technology organization that provides supply chain software and business solutions for hospitals and healthcare systems nationwide, announced that it has acquired Hospital Inventories Specialists, a leading provider of inventory management solutions and analytical services.

Management Health Solutions adds to its IT portfolio

FAIRFIELD, CT – With healthcare providers looking to their supply chain operations to improve efficiency and reduce wasteful spending, Management Health Solutions is relying on a couple of recent acquisitions to give them the IT tools they need.

The Fairfield, Conn.-based developer of business solutions announced Tuesday the acquisition of Hospital Inventories Specialists, a Tampa, Fla.-based provider of inventory management solutions and analytical services. Combined with the company's acquisition of mobile supply chain software developer AtPar this past May, MHS looks to double its business in the market - the second largest cost that a hospital incurs, behind labor - reaching roughly 20 percent of the nation's hospitals at the outset.

"The acquisition of HISI is a major step for MHS," said Bill Zierolf, MHS president and CEO. "We are buying an established and recognized industry player that will appreciably enhance the supply chain software and optimization services that MHS has provided to the U.S. healthcare industry. Together, we'll be developing and releasing the next generation of supply chain operations tools, Optimal Inventory Control (OPTIC) 3.0, to make managing the receipt, flow and charging of clinical supplies much more efficient."

"The market opportunity and potential for growth is tremendous," he added. "The majority of hospitals across the United States have yet to implement integrated point-of-use supply chain software, content management solutions and optimization best practices for tracking, managing, ordering and analyzing the flow and consumption of clinical supplies. Millions of dollars are wasted annually through overstocking, expired inventory, and last minute, overnight resupply. Our flagship product, OPTIC, addresses these needs and helps reduce cost and improve patient safety through increased visibility."

When acquiring Lebanon, N.H.-based AtPar earlier this year, Zierolf said hospitals stand to waste 30 percent to 40 percent of their budget on overstocked or out-of-date supplies or emergency orders for understocked items. He called the situation "a $70 billion industry with little automation," and said hospitals have to move away from manual, paper-intensive audits.

The HISI acquisition gives MHS much-needed tools for pharmacy inventory and analytics, company officials said.

"With full integration to all the leading material management information systems, our point-of-use mobile software applications provide unparalleled visibility for supply chain executives," said Mike Ferris, MHS' co-founder and executive vice president of operations. "Integrating software and professional services to independently serve our national client base is MHS' sole focus as a company."

"Bringing these two companies together makes perfect sense," added Martin C. Wein, HISI's principal and president. "The improvement in supply chain management that MHS will bring to a greater cross-section of the U.S. healthcare industry will not just reduce overall cost but improve patient safety as well."

With this latest deal, MHS expects to serve more than 1,000 hospitals, increase its employee base and double its inventory, currently valued at $2.5 billion. In 2008, when Zierolf joined the company, it had a client base of roughly 50 healthcare providers.

Management Health Solutions acquires Hospital Inventories Specialists

Management Health Solutions Inc (MHS) (Fairfield, CT), a provider of clinical inventory solutions, acquired Hospital Inventories Specialists (HISI) (Tampa, FL), a provider of inventory management solutions and analytical services. The acquisition will double MHS' customer base and market share, and add to its analytical, benchmarking and deep healthcare domain repertoire. Terms of the deal were not disclosed. For more information, visit www.mhsinc.com.

Management Health grows with new acquisition

Fairfield-based Management Health Solutions, a health-care information technology company, bought Hospital Inventories Specialists, an inventory management and analysis company.

MHS bolsters supply chain portfolio with inventory management deal

By Ewicklund

Management Health Solutions, a Fairfield, Conn.-based developer of business solutions announced Tuesday the acquisition of Hospital Inventories Specialists, a Tampa, Fla.-based provider of inventory management solutions and analytical services.

Combined with the company’s acquisition of mobile supply chain software developer AtPar this past May, MHS looks to double its business in the market – the second largest cost that a hospital incurs, behind labor – reaching roughly 20 percent of the nation’s hospitals at the outset.

“The acquisition of HISI is a major step for MHS," said Bill Zierolf, president and Chief Executive Officer of MHS. “We are buying an established and recognized industry player that will appreciably enhance the supply chain software and optimization services that MHS has provided to the U.S. healthcare industry. Together, we'll be developing and releasing the next generation of supply chain operations tools, Optimal Inventory Control (OPTIC) 3.0, to make managing the receipt, flow and charging of clinical supplies much more efficient.”

“The market opportunity and potential for growth is tremendous,” he added. “The majority of hospitals across the United States have yet to implement integrated point-of-use supply chain software, content management solutions and optimization best practices for tracking, managing, ordering and analyzing the flow and consumption of clinical supplies. Millions of dollars are wasted annually through overstocking, expired inventory, and last minute, overnight resupply. Our flagship product, OPTIC, addresses these needs and helps reduce cost and improve patient safety through increased visibility.”

When acquiring Lebanon, N.H.-based AtPar earlier this year, Zierolf said hospitals stand to waste 30 percent to 40 percent of their budget on overstocked or out-of-date supplies or emergency orders for understocked items. He called the situation “a $70 billion industry with little automation,” and said hospitals have to move away from manual, paper-intensive audits.

The HISI acquisition gives MHS much-needed tools for pharmacy inventory and analytics, company officials said.

“With full integration to all the leading material management information systems, our point-of-use mobile software applications provide unparalleled visibility for supply chain executives,” said Mike Ferris, MHS’ co-founder and executive vice president of operations. “Integrating software and professional services to independently serve our national client base is MHS' sole focus as a company.”

“Bringing these two companies together makes perfect sense,” added Martin C. Wein, HISI’s principal and president. “The improvement in supply chain management that MHS will bring to a greater cross-section of the U.S. healthcare industry will not just reduce overall cost but improve patient safety as well.”

Health IT Business News Roundup for the Week of October 22, 2010

M&A, Financial Reports and Funding Roche Diagnostics will acquire assets related to Medical Automation Systems' point-of-care technology connectivity system…Management Health Solutions, a health IT software provider, has acquired Hospital Inventories Specialists, a provider of inventory management programs, for an undisclosed sum...Xerox's Affiliated Computer Services division has acquired pharmaceutical teleservices company TMS Health from private-equity firm Palm Beach Capital for an undisclosed amount...Greenway Medical Technologies, a developer of EHR software for physician practices, has acquired PACS technology and other assets from VisualMED, an imaging conversion and communications firm, for an undisclosed sum.