L&H to take next step in strategy to develop complete range of solutions for health care

Ieper 02 June 2000Lernout & Hauspie (L&H) has signed an agreement to acquire certain Rodeer Systems Inc.'s medical transcription assets, including Rodeer's operations in Arizona, Georgia, Minnesota, Oklahoma and Texas. The agreement calls for L&H to obtain the assets for an aggregate purchase price of about $25 million, a figure which is approximately one and one half of Rodeer's annual revenues from these operations. The acquisition, which constitutes some 60% of all assets of Rodeer, is expected to bolster L&H's transcription resources and help enhance its growing health care solutions business.


In November 1999, L&H purchased Rodeer Systems Inc.'s southern-Florida based medical transcription business, and most recently L&H equally finalised its acquisition of Dictaphone Corporation based in Stratford, Connecticut. The two acquisitions complement each other, since Rodeer's transcription systems run on Dictaphone's voice and text platforms, and provide L&H with further resources to provide an end-to-end solution for the creation, management, and analysis of medical documentation. The Cosmas System, a software solution that L&H would also acquire from Rodeer, is expected to give L&H additional document management, transcription data analysis and management, and back office function capabilities.

"Now that we have completed the Dictaphone acquisition, L&H plans on integrating its speech and language technology into the Dictaphone platforms, ideally positioning us to offer the health care industry an end-to- end solution which we believe can reduce the cost for transcription and patient record management substantially", stated Gaston Bastiaens, president and CEO of L&H. "The additional transcription services capacity, and the Cosmas system, which we would acquire from Rodeer, would also enhance our base from which to develop a complete solution for back office and post editing."

"Our industry is in a state of evolution. Ever-increasing demand for medical information, a shortage of qualified medical transcriptionists, and emerging technologies, including automatic speech recognition and the Internet have created the most exciting time for this industry in recent memory", added Sean Carroll, president and CEO of Rodeer Systems. "L&H has been a leader in the move to create automated and advanced solutions for medical transcription and dictation and is by far the best company in helping Rodeer, its employees, and its customers take advantage of the opportunities which lay ahead.

L&H has been actively implementing, over the past year, a strategy aimed at creating a suite of health care solutions designed to reduce the tremendous cost and time involved in the clinical documentation process. The company expects to develop health care industry offerings and services which include an end-to-end document creation, management and analysis solution, available via an application service provider (ASP) model. It also expects to offer an Internet-based dictation and transcription service which allows clinicians to capture dictation without changing anything in the way they currently work.

L&H expects to employ its coding, data mining and clinical language understanding technologies to convert this valuable data into a variety of beneficial reports. These reports might include financial coding/abstracting reports, utilisation reviews, decision support, outcomes analysis, etc. The reports and underlying data captured by the L&H systems would be quickly and easily accessible to clinicians anytime, anywhere, via a Web-based work flow management and communications system.

Rodeer Systems is a provider of medical transcription services to hospitals, integrated health care facility networks, outpatient clinics, physician practices, and other health care providers in the United States. Rodeer currently owns and operates 19 offices in 8 states, employs over 700 medical linguistics specialists as transcriptionists, and provides transcription services to over 400 customers located in 26 states. Rodeer has also developed a proprietary intranet technology platform, which facilitates the electronic storage and analysis of both unstructured, text-based and structured electronic information derived from transcribed documents within a health care facility.

L&H has obtained the resources to implement its health care solutions strategy by combining its own existing health care industry expertise and technologies with those of other carefully chosen medical market vendors like Rodeer, LTI, Omni-Med, Articulate Systems and Dictaphone Systems. More details on these acquisitions are available in the VMW articles L&H turns Health Care Solutions business group into separate legal entity status in the February 2000 issue, Finalization of Fonix acquisition gives L&H resources to offer enterprise wide health care reporting solutions in the October 1999 issue, and Lernout & Hauspie to complete acquisition of Dictaphone Corporation in the June 2000 issue.

Leslie Versweyveld

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