Corporation (Nasdaq:INCX) announced that Healtheon/WebMD (Nasdaq:HLTH) has agreed
to invest up to $100 million in InfoCure's newly formed subsidiary VitalWorks.com.
Healtheon/WebMD will immediately purchase $10 million in cash convertible preferred
stock with an additional $90 million ($40 million in cash and $50 million of
Healtheon/WebMD common stock) invested at the completion of VitalWorks.com's
impending IPO. The investment is still subject to regulatory approval and approval
of both companies board of directors.
will utilize Healtheon/WebMD's transaction processing platforms and also incorporate
the "WebMD Practice" into VitalWorks ASP technology. In addition, InfoCure and
Healtheon/WebMD have entered into a joint research and development venture to
develop an ASP practice management application which will integrate with Healtheon/WebMD's
Microsoft based Internet transaction platform.
December 22, 1999, Hewlett-Packard, Qwest Communications, and InfoCure announced
they were working together to enable InfoCure's VitalWorks practice management
software as an Application Service Provider (ASP) for physicians and healthcare
Frederick L. Fine, CEO of VitalWorks stated "The investment of $100 million
by Healtheon/WebMD into VitalWorks and formation of a strategic partnership
provides validation of our ASP delivery strategy for our 70,000 physicians that
already utilize our practice workflow applications."
partnership is representative of a burgeoning market. The combination of hardware,
hosting and application companies are forming alliances to support a market
which DataQuest estimates will hit 22.7 billion by 2003. Healthcare is not the
only vertical serviced by ASP's. Messaging, financials and Enterprise Resource
Planning are only a few of the solutions available in this growing market.
physicians and health care providers considering a workflow application:
Consider your alternatives. Determine if an ASP model is appropriate. Investigate
VitalWorks feature set to determine if the application suits your needs. If
the solution fits, consider using InfoCure's partnership with HP to competitively
price an "HP centric" hardware solution. Take it a step further and inquire
about package pricing for the hardware, application, and hosting fees combined.