September 4, 2003

Federal Agents Raid Three Offices of WebMD

This little bit of news isn’t too high on the average news radar. See this is a really big deal in the medical community, since WebMD is involved in all aspects of practice and business management. Most people see WebMD as a place to gather health information (actually put together by HealthGate a separate company), but they also are involved in hospital billing, physician billing, pharmacy orders, stocks, etc. I’ve worked with a couple of WebMD clients, and it’s really an amalgamation of companies….a giant jigsaw puzzle. And each bit as confusing.

“The search warrant was issued in connection with an investigation by the Department of Justice into the dealer acquisition program of the company’s physician services segment, WebMD Medical Manager, and the company’s 1999 $5.5 million financial restatement, the company said.”

Their involvement with 3rd party billing along with the dealer acquisition program could be halted if the investigation goes sour. It accounts for a huge chunk of their business and could effectively kill the company. Trading in WebMD stock was halted on word of the news.