CareFusion

CareFusion Corporation
Subsidiary of Becton Dickinson
Industry Medical Technology
Founded 2009
Headquarters San Diego, CA U.S.
Area served
 Worldwide
Key people
 Kieran Gallahue
(Chairman and CEO)
Products Medical devices
Clinical services
Number of employees
 15,000 (2012)
Website carefusion.com

CareFusion was a global medical technology corporation serving the health care industry. The company specialized in two areas: reducing medication errors and prevention of health care-associated infections. The company manufactured health care technologies including Alaris IV pumps, Pyxis automated dispensing and patient identification systems; AirLife, AVEA and LTV series of ventilators and respiratory products; ChloraPrep skin prep products; MedMined services for infection surveillance; V. Mueller and Snowden-Pencer surgical instruments and a line of products that support interventional medicine.[1] CareFusion employed approximately 15,000 people worldwide.

On October 5, 2014, BD announced its acquisition of CareFusion for $58 USD per share in cash and stock, or a total of $12.2 billion, to create a global leader in medication management and patient safety solutions.[2] The acquisition was completed on March 17, 2015.[3]

History

Origins

CareFusion completed its spin-off from Cardinal Health on August 31, 2009. Businesses that were part of the Clinical and Medical Products segment of Cardinal Health were spun off to create CareFusion. CareFusion began publicly trading on the New York Stock Exchange on September 1, 2009, with former CEO David Schlotterbeck.

Acquisitions

On May 17, 2010, CareFusion acquired Medegen, Inc. for US$ 225 million in cash. On February 1, 2011, Kieran T. Gallahue was named CareFusion's chairman and CEO.[4]

In April 2012, CareFusion sold the Nicolet operating unit to Natus Medical Incorporated for $58 million. On July 7, 2012, CareFusion acquired U.K. Medical Limited, a distributor of medical products to the National Health Service and private health care sector in the United Kingdom. In October 2012, CareFusion acquired Intermed Equipamento Medico Hospitalar Ltda, a privately held, respiratory technologies company based in São Paulo, Brazil. Intermed designs, manufactures and markets ventilators and respiratory care devices for infant, pediatric and adult patients that are used in hospitals in Brazil and Latin America.

On November 18, 2013, CareFusion acquired Vital Signs Inc., a medical device manufacturing business, with the exception of European operations from GE Healthcare. In 2013, CareFusion bought 40% of the Israeli company Caesarea Medical Electronics.[5]

Dispute with the US Department of Justice

In January 2014, the United States Department of Justice reached a USD $40.1 million settlement with CareFusion.[6] The Department of Justice alleged that CareFusion paid its CEO USD $11.6 million to influence the Safe Practices Committee at the National Quality Forum to recommend, promote and arrange for the purchase of that company's products.[6][7]

The CEO called the kickback allegations "surprising" while his attorney emphasized that the whistleblower lawsuit contains no allegations against the CEO.[8]

An analysis by ProPublica reported that the National Quality Forum's final 2010 guidelines, currently in effect, still recommend 2% Chlorhexadine and 70% alcohol, which is the formulation of ChloraPrep.[9]The NQF agrees that this is consistent with current Centers for Disease Control and Prevention (CDC) guidelines.[10][11]

Business Segments

Most recently CareFusion had two business segments, providing the following products

which provided the following products and services

References

  1. ↑ About CareFusion.
  2. ↑ Cortez, Michelle (5 October 2014). "Becton Dickinson Agrees to Acquire CareFusion for $12.2B". Bloomberg.
  3. ↑ http://www.utsandiego.com/news/2015/mar/17/carefusion-purchase-becton-complete/
  4. ↑ http://www.healthdatamanagement.com/news/carefusion-ceo-devices-medication-management-vendor-41854-1.html
  5. ↑ The boycott movement is losing the battle - for now
  6. 1 2 "CareFusion to Pay the Government $40.1 Million to Resolve Allegations That Include More Than $11 Million in Kickbacks to One carefusion-settlement-idUSBREA081A520140109". reuters.com. Reuters. 9 January 2014.
  7. ↑ Kell, John (9 January 2014). "CareFusion to Pay $40.1 Million to Settle Kickback Allegations". The Wall Street Journal. Retrieved 19 January 2014.
  8. ↑ Carlson, Joe (21 January). "NQF panel member admits he got $11M from CareFusion, but calls kickback allegations surprising". Modern Healthcare. Retrieved 24 January 2014. Check date values in: |date= (help)
  9. ↑ http://www.propublica.org/article/hidden-financial-ties-rattle-top-health-quality-group
  10. ↑ http://www.modernhealthcare.com/article/20140228/NEWS/302289946/nqf-reviewing-2010-safe-practices-report-in-wake-of-kickback-claim
  11. ↑ http://www.cdc.gov/hicpac/pdf/guidelines/bsi-guidelines-2011.pdf
  12. ↑ CareFusion Fact Sheet.

External links

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