In the Region
Corvis to contract out manufacturing, lay off 30 or more
Corvis Corp. announced plans yesterday to contract out much of its manufacturing operations to reduce costs, a move that will lead to 30 or more layoffs in Columbia over the next six months.
The company said it has signed a multiyear contract with Celestica Inc., a Toronto technology manufacturer, to make its fiber-optic networking equipment. Corvis will lay off about 30 percent of its 115 manufacturing employees when a transition to Celestica is completed in six months, retaining the rest for work on product development and other operations.
Corvis last month reported a $119.1 million second-quarter loss, and it has laid off more than 500 employees around the world in the past year. The company, which now has about 900 employees, says the outsourcing is necessary to "improve financial strength and operational flexibility."
State Medicaid funds withheld from 2 HMOs
The state health department says it is withholding $142,064 from two HMOs that participate in the Medicaid program as sanctions for failing to meet clinical standards.
Debbie I. Chang, deputy health secretary, said the department is pleased, however, that care is improving overall and that four of the six HMOs met all the standards in the annual "care audit," a review of medical records from last year.
This year's sanctions were $129,763 for United HealthCare, which has an enrollment of 91,000, and $12,301 for Helix Family Choice, which enrolls 16,400. Overall, the Medicaid program had an enrollment of 446,000 at the end of 2001 and pays the HMOs about $1 billion in state and federal funds.
NYSE applies to SEC to delist USAir shares
The New York Stock Exchange has applied to the Securities and Exchange Commission to delist the stock of US Airways Group Inc. The company's shares were suspended before the start of trading Monday.
The airline filed for bankruptcy Sunday, becoming the first major carrier to do so in the wake of the terrorist attacks of Sept. 11. The exchange said Monday that the listing status of the shares was under review.
US Airways said it is evaluating the exchange's action. The Big Board said US Airways might appeal the delisting move.
Appleseed to help review CareFirst conversion plan
The DC Appleseed Center for Law and Justice has won approval to intervene as the District of Columbia insurance commissioner reviews CareFirst BlueCross BlueShield's plan to convert to for-profit operation.
That will allow Appleseed to present expert testimony, request information from CareFirst and cross-examine witnesses during hearings expected in the fall in the District.
CareFirst, the region's largest health insurer, also has applications pending before insurance regulators in Maryland and Delaware. If regulators approve, CareFirst would be acquired by California-based WellPoint Health Networks Inc. for $1.3 billion
Appleseed also said it has hired outside experts to review the likely impact of a conversion on health care in the region and whether $1.3 billion is a fair price.
Beth Steel's chairman has treatable cancer
Bethlehem Steel Corp. said yesterday that its chairman and chief executive, Robert S. "Steve" Miller, has received a diagnosis of "a very early and treatable" form of prostate cancer. He and his doctor are deciding on an appropriate treatment.
Miller, 60, will remain head of Bethlehem until the company is on "stable ground, which includes restructuring Bethlehem's [retiree health care and pension] obligations and negotiating a new, more flexible contract with the United Steelworkers of America," Bethlehem said.
The struggling steelmaker hired Miller in September and filed for Chapter 11 bankruptcy protection a month later.
Takeda to develop, sell Human Genome drug
Takeda Chemical Industries Inc. intends to develop and sell, in Japan, a Human Genome Sciences Inc. drug, the latter company said yesterday.
Rockville-based Human Genome Sciences retains the right to develop and sell the anti-cancer drug, known as Trail-R1 monoclonal antibody, in the rest of the world. The drug is designed to trigger the deaths of tumor cells when it binds to a protein lying on the surface of some tumors.
Human Genome said Takeda has paid it an option fee for the rights, and Human Genome stands to get further payments from Takeda as the drug achieves pre-determined milestones in its development. The Rockville company also stands to get royalties on sales of the drug in Japan.
3rd contract in 5 months landed by VISICU Inc.
VISICU Inc., a Baltimore company that develops telemedicine systems to manage intensive care units, said it has won its third new contract in five months. Sutter Health, which operates 26 hospitals in Northern California, will contract with VISICU for an "eICU" to oversee 94 intensive care beds in four hospitals.
Eventually, the plan is to build two more eICU centers to connect the other Sutter hospitals. An eICU is staffed by a doctor who specializes in critical care medicine, called an "intensivist," and a nurse who monitor vital signs on the patients, looking in by video if needed. Studies of VISICU's initial installation found lower costs and lower patient mortality.
Other recent deals for the 4-year-old company include one with New York-Presbyterian Healthcare System, affiliated with the Columbia and Cornell medical schools, which is to use VISICU's system to monitor 100 critical-care beds, and one with Tripler Army Medical Center in Hawaii, which is to use the technology to manage an intensive care unit at Guam Naval Hospital.
Adventist operating 3 programs at Crownsville
Adventist HealthCare said yesterday that it has begun operating three programs for emotionally disturbed adolescents at the state's Crownsville Hospital Center. The five-year, $36 million contract was awarded by the state after competitive bidding.
The contract consolidates operations of a residential treatment program, a group home and a school, previously managed by two separate contracts.
An Adventist HealthCare spokesman said off-site contracts for managing behavioral services are new for Adventist HealthCare, which operates three hospitals in Maryland.
Environmental Elements loses 5 cents a share
Environmental Elements Corp. reported yesterday that it lost $394,000, or 5 cents a share, in its first quarter, compared with income of $305,000, or 4 cents a share, posted for last year's first quarter.
The Baltimore pollution-control firm said the downturn was largely the result of a loss it expects to incur from a contract to rebuild an electrostatic precipitator, which removes particulate pollutants from emissions.
Sales in the three months which ended June 30 were $14.3 million, down from $16.9 million. New orders were up 19 percent at $13.4 million vs. $11.3 million last year.
Elsewhere
Fired Tyco executive sues for severance exceeding $9 million
A former vice president of Tyco International Ltd. who was fired amid a mounting scandal at the company filed a lawsuit yesterday demanding more than $9 million in severance pay.
Richard Power, a vice president at the company until late June, filed suit in U.S. District Court in Manhattan, claiming that his contract entitles him to a payment of double his final-year pay of $4.65 million.
Power was fired June 26 as part of a shake-up among top executives after former chief executive Dennis Kozlowski was indicted on charges of evading state sales taxes on multimillion-dollar works of art.
This column was compiled from reports by Sun staff writers, the Associated Press and Bloomberg News.