MediQual Systems sold to Quantros

November 6, 2009 by MassDevice staff

Buyer pledges to add jobs next year at its new Marlborough, Mass., healthcare data-mining acquisition.

MediQual Systems Inc., once a Cardinal Health data-mining subsidiary based in Marlborough, Mass., was sold to Quantros Inc.

The deal was announced Thursday by Milipas, Calif.-based Quantros, which said it plans to open an East Coast office in the existing MediQual facilities in Marlborough.

MediQual and Quantros both competed with several companies in the clinical- and decision-support business, including Quadramed Corp. and Eclipsys Corp., and specialty units of McKesson Corp., Health Management Systems and Siemen Medical Solutions.

MediQual split from Cardinal Health in September as part of the spin-off of Cardinal's medical device and service businesses. The spinout company now operates as Carefusion, which Thursday reported $933 million in revenues during the three months ended Sept. 30.

Cardinal Health acquired MediQual 12 years ago for $35 million. Terms of the current sale were not disclosed.

Privately held Quantros manages and analyzes data for healthcare providers with an emphasis on improving patient safety. MediQual likewise frequently focused on safety concerns and three years ago was one of the primary investigators in a study of bloodstream infections acquired by patients during hospital stays.

The study's conclusions were critical of many hospital procedures and were supported with information from MediQual's extensive patient database.

"It comes free with the territory," wrote vice president of clinical affairs Richard Johannes.

MediQual currently has about 120 employees. Annual sales for the firm were not immediately available.

Quantros officials said they expect to add more employees at Mediqual over the next 12 months.

"Quantros already has an expansive client footprint on the East Coast, beyond those healthcare providers using MediQual solutions," said Randy Everett, head of operations at Quantros, in prepared remarks. "This new facility will add jobs to the greater Boston area and provide expanded opportunities to better serve the combined Quantros and MediQual client base.”

Quantros last year also acquired Medcast Health Analytics, a Cypress, Texas-based firm providing web-based financial analysis to hospitals and provider networks.