“Market Cap $8.41 B As of May 2014
At a Glance
- Industry: Medical Equipment & Supplies
- Founded: 2009
- Country: United States
- CEO: Kieran Gallahue
- Website: www.carefusion.com
- Employees: 15,000
- Sales: $3.56 B
- Headquarters: San Diego, California
#1873 Global 2000
- #1490 in Profit
- #1954 in Assets
- #1268 in Market value
CareFusion Corp. is a medical technology company. It offers product lines in the areas of medication management, infection prevention, operating room effectiveness, respiratory care, and surveillance and analytics. The company develops technologies include Alaris intravenous infusion systems; Pyxis automated medication dispensing and supply management systems; AVEA, Vela and LTV series respiratory ventilators; ChloraPrep skin prep products; MaxGuard, MaxPlus and SmartSite needle-free IV infusion disposable sets and accessories; V. Mueller and Snowden-Pencer open surgical and laparoscopic instrumentation; AirLife nebulizers, ventilator circuits and other disposables used for providing respiratory therapy; Jaeger and SensorMedics cardiopulmonary diagnostic equipment; and MedMined software and surveillance services. It operates through two segments: Medical Systems and Procedural Solutions. The Medical Systems segment offers hospitals safe and efficient systems for end to-end medication and supply management, including loading dock, pharmacy, nursing and waste segregation; and helps prevent errors related to medication dispensing and tracking of labs, tissues, implants, transfusions, breast milk and specimens. This segment also reduces adverse drug events and potential medication errors, and offers infusion system that helps protect all types of infusions with proprietary dose error reduction software. The Procedural Solutions segment helps hospitals support infection control guidelines to reduce infection-causing bacteria; and provides interventional specialty products to help improve patient care for conditions from spinal fractures to recurrent pleural effusions. It also provides surveillance to help hospitals manage data that identifies and tracks healthcare associated infections and automate central supply workflow with instrument, repair and sterilization management. The company was founded on January 14, 2009 and is headquartered in San Diego, CA.“
“Cardinal Health History
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.
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.
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.
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. 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.
The CEO called the kickback allegations “surprising” while his attorney emphasized that the whistleblower lawsuit contains no allegations against the CEO.
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.The NQF agrees that this is consistent with current Centers for Disease Control and Prevention (CDC) guidelines.”
*Information from Forbes.com and Wikipedia.org
**Video published on YouTube by “carefusion·”