According to a transcript of medical transcription service provider Transcend Services' first quarter earnings call, the total cost of the company's unsuccessful bid to purchase bankrupt rival Spheris will be at least $1.1 million. Transcend CFO Lance Cornell told investors to expect an additional $400,000 to $500,000 of Spheris-related expenses in the second quarter, on top of the $678,000 already on the books. President and COO Sue McGrogan explained that "most of the legal work had to be done in advance just to be qualified to participate in the auction. We decided to take the risk and incur the cost because the opportunity was too compelling to ignore."
McGrogan also stated that with the Spheris bid behind them, Transcend would be "actively pursuing other acquisition opportunities," and that the company hoped to complete "one or more acquisitions in the second half of 2010." She also reiterated Transcend's intention to increase the volume of work performed offshore.
On the technology front, CEO Larry Gerdes reported that the company is in the process of rolling out Beyond Alerts, a structured text data-mining application that searches transcribed reports for information which hospital clients can use to report core measures. Gerdes also told investors that the company is making "significant progress" on the development of a "next-generation, yet-to-be-named transcription workflow platform" to be marketed directly to hospitals who want to license their own transcription system. Gerdes said the new platform will provide access to "operating efficiencies offered by M*Modal speech recognition technology that we have integrated into the platform. We expect to finish core development and enter beta testing in the fourth quarter of this year."
Jay Vance, CMT
AHDI Lounge Administrator/Moderator