Royal Philips Electronics (NYSE: PHG | Quote | Chart | News | PowerRating) recently announced an agreement to sell its majority stake of 69.5% in MedQuist Inc. to CBay Systems Holdings for approximately US $285 million.
By acquiring MedQuist, CBay has propelled itself to the top position among medical transcription companies. Although ranked at number three after MedQuist and Spheris, CBay's $57 million revenues in 2007 are much smaller than MedQuist's $340 million. CBay primarily operates out of India - its Indian arm employs about 5,850 people including permanent and franchisee staff. MedQuist on the other hand has 8,000 employees mostly based in the US. CBay is likely to list soon, and has aggressive expansion plans in India.
Medical Transcription Dominated By MTSOs
The US is currently the largest outsourcer of medical transcription services. The size of the US medical transcription industry is estimated to be in the range of $12 billion and is expected to reach $16.8 billion by 2010. The US healthcare industry went through a major change in the 1990s, when the need to standardize transcription style in order to clarify medical terminology was recognized. Further, the American Association of Medical Transcription (AAMT) Book of Style for Medical transcription was published in 1995. This led to an increased emphasis on standardized documentation and accuracy.
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By acquiring MedQuist, CBay has propelled itself to the top position among medical transcription companies. Although ranked at number three after MedQuist and Spheris, CBay's $57 million revenues in 2007 are much smaller than MedQuist's $340 million. CBay primarily operates out of India - its Indian arm employs about 5,850 people including permanent and franchisee staff. MedQuist on the other hand has 8,000 employees mostly based in the US. CBay is likely to list soon, and has aggressive expansion plans in India.
Medical Transcription Dominated By MTSOs
The US is currently the largest outsourcer of medical transcription services. The size of the US medical transcription industry is estimated to be in the range of $12 billion and is expected to reach $16.8 billion by 2010. The US healthcare industry went through a major change in the 1990s, when the need to standardize transcription style in order to clarify medical terminology was recognized. Further, the American Association of Medical Transcription (AAMT) Book of Style for Medical transcription was published in 1995. This led to an increased emphasis on standardized documentation and accuracy.
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