Where is webmd incorporated




















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And the health-care industry is one of the stingiest spenders on IT. What's more, says Clark, the system's wastefulness is entrenched. Rather than trying to automate insurers, Long wanted to focus on automating physicians, developing software that would allow them to accomplish such online tasks as checking a patient's coverage or making a referral to a specialist.

The addition of ActaMed brought with it actual customers and cash flow, important because Healtheon was preparing to make an initial public offering IPO of stock. Healthon filed to go public in July but canceled the October offering. Press reports claimed the company's road show was a disaster. According to the Wall Street Journal, one source "said executives fumbled basic questions concerning their proposed business model. Moreover, market conditions for IPOs suddenly turned volatile. Investors now began to embrace the stock, bidding it up by percent in a matter of ten weeks.

Much of that excitement was due to an announcement that Healtheon planned to acquire Atlanta-based WebMD, a healthcare informational web site. Now Healtheon would become multidimensional, able to serve both consumers and the professional community.

In the words of an analyst quoted by the Wall Street Journal, "WebMD is the front end and Healtheon is the back end of an integrated company. WebMD's wonder kid founder, Jeffrey T. Arnold, shared some of the same traits as Healtheon's Clark. He was an indifferent student at the University of Georgia, where he studied communications before dropping out in , only a few credits shy of graduation.

Arnold was just 26 years old. He used some of that money to launch his next business, a web site to offer free healthcare information to consumers and subscription services to doctors.

He was less interested in developing technology than he was in signing up companies to provide medical information or services on his site, in this way securing content ahead of the competition. During an Easter weekend vacation in Arnold and board member Boland Jones decided to cold call Microsoft and suggest a partnership. Getting wind of the deal, Long cold called Arnold and set up a meeting to discuss a possible merger.

Given how Microsoft had crushed Netscape in the Web browser field, Clark and Long wanted to avoid taking on Microsoft. Arnold was obligated to present the merger proposal to Microsoft and soon received their blessing on the deal. The addition of Mede America, which operated an electronic processing system that handled some million medical transactions a year, and Greenberg News, a daily news and information service for doctors, was just the first in a series of acquisitions and alliances that WebMD completed over the next several months in an effort to fill out the business.

It acquired Medical Manager Corp. In addition, WebMD forged alliances with Medibuy. WebMD was certainly getting larger, but it remained uncertain that scale provided the kind of benefit that the company's business model assumed.

Regional companies chipped away while WebMD struggled to get a handle on its business and achieve profitability. In mid the company began to reorganize and cost-cutting measures were implemented. As part of this housecleaning effort Arnold was forced to share power with Martin Wygod, a veteran healthcare executive who came to WebMD as part of the Medical Manager deal.

More serious changes in the top ranks of management would soon follow. Nigram retired as chief technology officer, expressing a desire to go into semi-retirement and spend more time with his family.

A few days later Arnold resigned as co-CEO and relinquished his position as a board member. Clark also resigned from the board. Both would soon be caught up in new ventures. WebMD wrote down the value of many of its acquisitions leading to massive losses. Long gone, however, was Clark's dream of creating an overarching web-based system or his original idea to use the Internet to make healthcare transactions more efficient.

Instead, WebMD evolved into a company with related product lines and some successful, albeit not interconnected, Internet portals. On the positive side, the company had achieved some diversity and was positioned not only to take advantage of the government requirement that all records be digitized but of other trends in the healthcare field as well.

Of some concern to investors was that WebMD's two largest business areas, claims transaction services and physicians, were not experiencing the kind of internal growth for which investors had hoped. According to one analyst quoted by Business Week Online, the company's management team was "good at cutting costs and doing deals--but not at executing on an operating basis.

All the pieces are there. They just need capable people to put it together and make it work. This web site and associated pages are not associated with, endorsed by, or sponsored by Webmd Corporation and has no official or unofficial affiliation with Webmd Corporation.



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