I know I'm not the only one that hopes Kronos' acquisition of API Healthcare falls through. I also know that most people don't feel comfortable talking about it for fear of their jobs. THERE IS SOMETHING YOU CAN DO. Contact the Federal Trade Commission.
The FTC, in conjunction with the Department of Justice, is the government agency that approves mergers and acquisitions and makes sure that antitrust laws aren't broken. If you think this is a bad idea, contact the FTC.
Here are your options:
By email: antitrust@ftc.gov
This method isn't considered confidential, so if that's a concern...
By mail:
Federal trade Commission
Bureau of Competition-H374,
Washington, D.C. 20580
If you mark the mail "Confidential" it will be treated as such.
By phone:
1–877–382–4357
As I understand it, the FTC has issued a second request for information. They don't always do this so hopefully it means they see a potential problem. It also means time is fleeting so ACT NOW.
For more information, visit ftc.gov or view this PDF from their website that gives a nice overview.
Showing posts with label Kronos. Show all posts
Showing posts with label Kronos. Show all posts
Monday, April 4, 2011
Sunday, April 3, 2011
API Heathcare's Acquisition by Kronos Remains Unpopular
My feelings about the pending sale of API Healthcare to Kronos is no secret. I think this is a horrible idea. As it turns out, I'm not the only one that thinks this. I have it on good authority that in addition to me, but the API employees AND customers are not in favor either!
Two and a half years ago when Francisco Partners bought API, there was a lot of uncertainty. The employees knew things were going to get shaken up. There was a shake up and really, I would say that the operation of the entire company changed. The balance between making money, providing a quality product, and treating employees fairly shifted dramatically. I hate to say it but employees were on the losing end of that switch. Nonetheless, the core focus of the company remained steadfast and probably even got more precise. Because of that focus, the vast majority of employees remained loyal to the company. There were only a handful of employees that left or were let go.
Fast forward to 2011. Employee retention has become a big problem. I don't have exact number of departures but I'll let you draw your own conclusions but it's pretty obvious that there's a problem when the company has to resort to bribery. If you were a customer right now, how would you feel knowing employees are jumping ship?
Rumor has it that the clients aren't any more excited about this either. Why would they be? There are two major competitors in the market. They chose API over Kronos for a reason and now they're potentially being forced into using a product they don't want or with a company they don't want to work with.
If ever there was a time for the regulators to step in and say, "NO!!!" this is it. Competition is good for the market and for consumers. There is nothing good that could come of this acquisition. All Kronos wants is to eliminate their biggest competitor because that will translate to more money for them AND they won't have to work as hard to try to maintain some sort of edge in the market.
Two and a half years ago when Francisco Partners bought API, there was a lot of uncertainty. The employees knew things were going to get shaken up. There was a shake up and really, I would say that the operation of the entire company changed. The balance between making money, providing a quality product, and treating employees fairly shifted dramatically. I hate to say it but employees were on the losing end of that switch. Nonetheless, the core focus of the company remained steadfast and probably even got more precise. Because of that focus, the vast majority of employees remained loyal to the company. There were only a handful of employees that left or were let go.
Fast forward to 2011. Employee retention has become a big problem. I don't have exact number of departures but I'll let you draw your own conclusions but it's pretty obvious that there's a problem when the company has to resort to bribery. If you were a customer right now, how would you feel knowing employees are jumping ship?
Rumor has it that the clients aren't any more excited about this either. Why would they be? There are two major competitors in the market. They chose API over Kronos for a reason and now they're potentially being forced into using a product they don't want or with a company they don't want to work with.
If ever there was a time for the regulators to step in and say, "NO!!!" this is it. Competition is good for the market and for consumers. There is nothing good that could come of this acquisition. All Kronos wants is to eliminate their biggest competitor because that will translate to more money for them AND they won't have to work as hard to try to maintain some sort of edge in the market.
Friday, February 25, 2011
Good News Remains Elusive for API Healthcare
Kronos detailed some more of its plans regarding its acquisition of API Healthcare at the 2011 HIMSS conference. For those of you that don't know, HIMSS is probably the largest healthcare information technology organizations in the world. They have a conference each February and it is enormous. In fact, only a handful of cities can host it because it's so big.
If there's any good news, it's that API's current solutions will continue to be supported. Of course, there's no word about continuing to develop them or actively market them to new customers.
They're pretty clear that they plan to combine the best from each product line. To me this sounds like ransack and pillage.
I think what is most telling though is their overt excitement about obtaining the patient classification system (PCS). What that system does is it calculates staffing levels based on patient needs. So if you have a lot of critically sick patients, it will show you that you need more staff to come in and which staff members will best fill the need, and how you can do it for the lowest cost. This, too, is an area that is being increasingly regulated. To my knowledge, API's PCS is a revolutionary technology in the industry and Kronos had nothing to match it. Because of the regulation in states like California, Kronos couldn't put up much competition.
Since jobs are a hot topic, let's talk about that. Sales and training staff are no longer needed. Engineering staff can be cut down to a skeleton crew for support issues. Configuration analysts can be reduced soon since there won't be new implementations. Tech writers are no longer needed. HR? Goodbye. Management? Goodbye. About the only group things look okay for are the support personnel.
Again, I hope to be proven wrong. PLEASE, prove me wrong! But what good comes from eliminating the biggest competitor in the market with an exclusive cutting edge technology?
P.S. Historically, API has always had some big announcement to make at HIMSS. I haven't been able to find anything about one this year. This is yet another sign of what's to come. No news is bad news because it says that the company is does not have anything exciting to announce about its future.
If there's any good news, it's that API's current solutions will continue to be supported. Of course, there's no word about continuing to develop them or actively market them to new customers.
They're pretty clear that they plan to combine the best from each product line. To me this sounds like ransack and pillage.
I think what is most telling though is their overt excitement about obtaining the patient classification system (PCS). What that system does is it calculates staffing levels based on patient needs. So if you have a lot of critically sick patients, it will show you that you need more staff to come in and which staff members will best fill the need, and how you can do it for the lowest cost. This, too, is an area that is being increasingly regulated. To my knowledge, API's PCS is a revolutionary technology in the industry and Kronos had nothing to match it. Because of the regulation in states like California, Kronos couldn't put up much competition.
Since jobs are a hot topic, let's talk about that. Sales and training staff are no longer needed. Engineering staff can be cut down to a skeleton crew for support issues. Configuration analysts can be reduced soon since there won't be new implementations. Tech writers are no longer needed. HR? Goodbye. Management? Goodbye. About the only group things look okay for are the support personnel.
Again, I hope to be proven wrong. PLEASE, prove me wrong! But what good comes from eliminating the biggest competitor in the market with an exclusive cutting edge technology?
P.S. Historically, API has always had some big announcement to make at HIMSS. I haven't been able to find anything about one this year. This is yet another sign of what's to come. No news is bad news because it says that the company is does not have anything exciting to announce about its future.
Thursday, February 24, 2011
Kronos' Acquisition of API Healthcare Is Only Good for Kronos
It was announced on February 7 that Kronos would acquire API Healthcare. This is not good news for anyone but Kronos. It is not good for API employees. It is not good for API customers. I suppose it may be good for Kronos customers in the short term but that remains to be seen.
Who Am I
Who am I to talk you ask? A former API Healthcare employee. I worked there for three years-two years under the original ownership and one year under Francisco Parterns' ownership. I liked working there. I had great coworkers. The management was professional. The company had drive. It was a trifecta for happy employees. The only reason I left was because after meeting my life partner, we decided to start a new life together in Chicago. Unfortunately, Francisco Partners has sold everyone out, in my opinion.
Why This Is Bad
So what's so bad about this? API Healthcare has had a laser focus on the healthcare industry. Everything they make is custom engineered for medical professionals. This means there are no half-ass solutions that try to maximize profits by stretching a single product across multiple industries. Don't get me wrong, the proverbial death of two birds with one stone is a good thing. Healthcare is such a unique industry though. The pay rules for nurses and other support staff can be so convoluted. Government regulation is extensive and it varies wildly from state to state. This is a 24/7/365. To be a leader in this field, you need a laser focus.
Kronos has been trying to acquire API for as long as I know and certainly longer. API has been Kronos' biggest competitor. Kronos has solutions for a multitude of industries. And of course, their healthcare division simply doesn't have the precision of API. Because of Kronos' size though, they have a respectable market share despite their inferior product.
I would bet money that API employees are going to lose their jobs. Once Kronos gets their hands on the software, they're going to rip it apart, reverse engineer it, and shove it into their own product. They'll only keep API employees around to execute the carnage.
I would also bet money that API customers aren't going to be happy with the results. Kronos still will not have the laser focus. The product is going to get dumbed down and exploited and it's not going to work as well or have the same drive for improvement. Additionally, nothing good ever comes when competition goes away. Sure, there are a handful of other companies in the market but they're peons compared to what's to come. But it's not like Kronos is adding new solution to their portfolio, they're just eliminating the chief competition. Competition has forced both API and Kronos to keep raising the bar. There's no need to do that anymore. Hospitals will be backed into a corner and forced into using a shoddy product because there will be no other choices.
Please Prove Me Wrong
I hope to be proven wrong but I just don't see any silver lining to this. There's one last thought that I want to express. When Francisco Partners bought API from Luis Garcia, they were quite vocal about how they bought companies as long-term investments. They've only had API for two years, which is not very long. I wonder how long Kronos and Francisco have been in negotiations...
Who Am I
Who am I to talk you ask? A former API Healthcare employee. I worked there for three years-two years under the original ownership and one year under Francisco Parterns' ownership. I liked working there. I had great coworkers. The management was professional. The company had drive. It was a trifecta for happy employees. The only reason I left was because after meeting my life partner, we decided to start a new life together in Chicago. Unfortunately, Francisco Partners has sold everyone out, in my opinion.
Why This Is Bad
So what's so bad about this? API Healthcare has had a laser focus on the healthcare industry. Everything they make is custom engineered for medical professionals. This means there are no half-ass solutions that try to maximize profits by stretching a single product across multiple industries. Don't get me wrong, the proverbial death of two birds with one stone is a good thing. Healthcare is such a unique industry though. The pay rules for nurses and other support staff can be so convoluted. Government regulation is extensive and it varies wildly from state to state. This is a 24/7/365. To be a leader in this field, you need a laser focus.
Kronos has been trying to acquire API for as long as I know and certainly longer. API has been Kronos' biggest competitor. Kronos has solutions for a multitude of industries. And of course, their healthcare division simply doesn't have the precision of API. Because of Kronos' size though, they have a respectable market share despite their inferior product.
I would bet money that API employees are going to lose their jobs. Once Kronos gets their hands on the software, they're going to rip it apart, reverse engineer it, and shove it into their own product. They'll only keep API employees around to execute the carnage.
I would also bet money that API customers aren't going to be happy with the results. Kronos still will not have the laser focus. The product is going to get dumbed down and exploited and it's not going to work as well or have the same drive for improvement. Additionally, nothing good ever comes when competition goes away. Sure, there are a handful of other companies in the market but they're peons compared to what's to come. But it's not like Kronos is adding new solution to their portfolio, they're just eliminating the chief competition. Competition has forced both API and Kronos to keep raising the bar. There's no need to do that anymore. Hospitals will be backed into a corner and forced into using a shoddy product because there will be no other choices.
Please Prove Me Wrong
I hope to be proven wrong but I just don't see any silver lining to this. There's one last thought that I want to express. When Francisco Partners bought API from Luis Garcia, they were quite vocal about how they bought companies as long-term investments. They've only had API for two years, which is not very long. I wonder how long Kronos and Francisco have been in negotiations...
Subscribe to:
Posts (Atom)