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{{Refimprove|date=December 2010}}
{{Infobox company
{{Infobox company
|name = '''CareFusion Corporation'''
|name = '''CareFusion Corporation'''
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|homepage = [http://www.carefusion.com/ carefusion.com]
|homepage = [http://www.carefusion.com/ carefusion.com]
}}
}}
'''CareFusion''' was a [[global company|global]] [[medical technology]] corporation serving the [[health care industry]]. The company specialized in two areas: reducing [[medication errors]] and prevention of [[Hospital-acquired infection|health care-associated infections]]. The company manufactured health care technologies including Alaris [[IV pump]]s, Pyxis [[automated dispensing cabinet|automated dispensing]] and patient identification systems; AirLife, AVEA and LTV series of [[ventilators]] and respiratory products; ChloraPrep [[Chlorhexidine|skin prep]] products; MedMined services for [[Infection control#Surveillance for emerging infections|infection surveillance]]; V. Mueller and Snowden-Pencer [[surgical instruments]] and a line of products that support interventional medicine.<ref>[http://www.carefusion.com/our-company/index.aspx About CareFusion.] {{webarchive |url=https://web.archive.org/web/20101209091122/http://www.carefusion.com/our-company/index.aspx |date=December 9, 2010 }}</ref>
'''CareFusion''' was a [[global company|global]] [[medical technology]] corporation serving the [[health care industry]]. The company specialized in two areas: reducing [[medication errors]] and prevention of [[Hospital-acquired infection|health care-associated infections]]. The company manufactured health care technologies including Alaris [[IV pump]]s, Pyxis [[automated dispensing cabinet|automated dispensing]] and patient identification systems; AirLife, AVEA and LTV series of [[ventilators]] and respiratory products; ChloraPrep [[Chlorhexidine|skin prep]] products; MedMined services for [[Infection control#Surveillance for emerging infections|infection surveillance]]; V. Mueller and Snowden-Pencer [[surgical instruments]] and a line of products that support interventional medicine.<ref>[http://www.carefusion.com/our-company/index.aspx About CareFusion.] {{webarchive |url=https://web.archive.org/web/20101209091122/http://www.carefusion.com/our-company/index.aspx |date=December 9, 2010 }}</ref> CareFusion employed approximately 15,000 people worldwide.
CareFusion employed approximately 15,000 people worldwide.


On October 5, 2014, [[Becton Dickinson|BD]] announced its acquisition of CareFusion for $58 USD per share in cash and stock, or a total of $12.2 billion, to create a global
On October 5, 2014, [[Becton Dickinson|BD]] announced its acquisition of CareFusion for $58 USD per share in cash and stock, or a total of $12.2 billion, to create a global
leader in medication management and patient safety solutions.<ref>{{cite news| url=https://www.bloomberg.com/news/2014-10-05/becton-dickinson-agrees-to-acquire-carefusion-for-12-2b.html | work=Bloomberg | first=Michelle | last=Cortez | title=Becton Dickinson Agrees to Acquire CareFusion for $12.2B | date=5 October 2014}}</ref> The acquisition was completed on
leader in medication management and patient safety solutions.<ref>{{cite news| url=https://www.bloomberg.com/news/2014-10-05/becton-dickinson-agrees-to-acquire-carefusion-for-12-2b.html | work=Bloomberg | first=Michelle | last=Cortez | title=Becton Dickinson Agrees to Acquire CareFusion for $12.2B | date=5 October 2014}}</ref> The acquisition was completed on March 17, 2015.<ref>{{cite web|url=http://www.utsandiego.com/news/2015/mar/17/carefusion-purchase-becton-complete/|title=$12B CareFusion purchase final|first=Bradley J.|last=Fikes|publisher=|accessdate=5 June 2017}}</ref>
March 17, 2015.<ref>{{cite web|url=http://www.utsandiego.com/news/2015/mar/17/carefusion-purchase-becton-complete/|title=$12B CareFusion purchase final|first=Bradley J.|last=Fikes|publisher=|accessdate=5 June 2017}}</ref>


== History ==
== History ==
===Origins===
===Origins===
CareFusion completed its [[Corporate spin-off|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 traded|publicly trading]] on the [[New York Stock Exchange]] on September 1, 2009, with former CEO David Schlotterbeck.{{Citation needed|date=May 2014}}
CareFusion completed its [[Corporate spin-off|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 traded|publicly trading]] on the [[New York Stock Exchange]] on September 1, 2009, with former CEO David Schlotterbeck.<ref>{{Cite web|url=https://www.sec.gov/Archives/edgar/data/721371/000119312509185512/dex991.htm|title=News Release issued by CAH|website=www.sec.gov|access-date=2017-09-06}}</ref>


===Acquisitions===
===Acquisitions===
On May 17, 2010, CareFusion acquired Medegen, Inc. for [[US$]] 225 million in [[cash]].<ref>{{cite web |url= http://www.sandiegouniontribune.com/sdut-carefusion-to-acquire-medegen-for-225-million-2010apr05-story.html |title= CareFusion to Acquire Medegen for $225 Million |work= San Diego Union Tribune |accessdate=2017-05-02}}</ref> On February 1, 2011, Kieran T. Gallahue was named CareFusion's chairman and CEO.<ref>{{cite web|url=http://www.healthdatamanagement.com/news/carefusion-ceo-devices-medication-management-vendor-41854-1.html|title=New Leader at CareFusion|publisher=|accessdate=5 June 2017}}</ref> In April 2012, CareFusion sold the Nicolet operating unit to ''Natus Medical'' Incorporated for $58 million. On July 7, 2012, CareFusion acquired U.K. Medical Limited, a distributor of medical products to the [[National Health Service]] and private health care sector in the United Kingdom.<ref>{{cite web |url= http://www.prnewswire.com/news-releases/carefusion-to-acquire-brazilian-respiratory-company-intermed-173100251.html |title= CareFusion To Acquire Brazilian Respiratory Company Intermed |work= PR Newswire |accessdate=2017-05-02}}</ref> In November 2012, CareFusion acquired Intermed Equipamento Medico Hospitalar Ltda, a privately held respiratory technologies company based in Cotia, Brazil. Intermed designs, manufactures and markets ventilators and respiratory care devices for infant, pediatric and adult patients that are used in hospitals in Brazil, Latin America and Europe.<ref>{{cite web |url= https://www.buildingbetterhealthcare.co.uk/news/article_page/CareFusion_announces_acquisition_of_UK_Medical/78578 |title= CareFusion announces acquisition of UK Medical |work= Building Better Healthcare |accessdate=2017-05-02}}</ref>
On May 17, 2010, CareFusion acquired Medegen, Inc. for [[US$]] 225 million in [[cash]].<ref>{{cite web |url= http://www.sandiegouniontribune.com/sdut-carefusion-to-acquire-medegen-for-225-million-2010apr05-story.html |title= CareFusion to Acquire Medegen for $225 Million |work= San Diego Union Tribune |accessdate=2017-05-02}}</ref> On February 1, 2011, Kieran T. Gallahue was named CareFusion's chairman and CEO.<ref>{{cite web|url=http://www.healthdatamanagement.com/news/carefusion-ceo-devices-medication-management-vendor-41854-1.html|title=New Leader at CareFusion|publisher=|accessdate=5 June 2017}}</ref> 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.<ref>{{cite web |url= http://www.prnewswire.com/news-releases/carefusion-to-acquire-brazilian-respiratory-company-intermed-173100251.html |title= CareFusion To Acquire Brazilian Respiratory Company Intermed |work= PR Newswire |accessdate=2017-05-02}}</ref> In November 2012, CareFusion acquired Intermed Equipamento Medico Hospitalar Ltda, a privately held respiratory technologies company based in Cotia, Brazil. Intermed designs, manufactures and markets ventilators and respiratory care devices for infant, pediatric and adult patients that are used in hospitals in Brazil, Latin America and Europe.<ref>{{cite web |url= https://www.buildingbetterhealthcare.co.uk/news/article_page/CareFusion_announces_acquisition_of_UK_Medical/78578 |title= CareFusion announces acquisition of UK Medical |work= Building Better Healthcare |accessdate=2017-05-02}}</ref>


On November 18, 2013, CareFusion acquired Vital Signs Inc., a medical device manufacturing business, with the exception of European operations from GE Healthcare. {{Citation needed|date=May 2014}} In 2013, CareFusion bought 40% of the [[Israel]]i company Caesarea Medical Electronics.<ref>[http://www.haaretz.com/news/features/david-s-harp/.premium-1.564168 The boycott movement is losing the battle - for now]</ref>
On November 18, 2013, CareFusion acquired Vital Signs Inc., a medical device manufacturing business, with the exception of European operations from GE Healthcare.<ref>{{Cite news|url=https://www.wsj.com/articles/carefusion-to-acquire-ge-healthcare-unit-for-500-million-1384785154|title=CareFusion to Acquire GE Health-Care Unit for $500 Million|last=Mason|first=Everdeen|date=2013-11-18|work=Wall Street Journal|access-date=2017-09-06|language=en-US|issn=0099-9660}}</ref><ref>{{Cite web|url=http://www.massdevice.com/carefusion-closes-vital-signs-purchase/|title=CareFusion closes Vital Signs purchase – MassDevice|website=www.massdevice.com|language=en-US|access-date=2017-09-06}}</ref> In 2013, CareFusion bought 40% of the [[Israel]]i company Caesarea Medical Electronics.<ref>[http://www.haaretz.com/news/features/david-s-harp/.premium-1.564168 The boycott movement is losing the battle - for now]</ref>


===Dispute with the US Department of Justice===
===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.<ref name="USDoJ">{{cite web|title=CareFusion to Pay the Government $40.1 Million to Resolve Allegations That Include More Than $11 Million in Kickbacks to One carefusion-settlement-idUSBREA081A520140109|accessdate=19 January 2014|newspaper=reuters.com|date=9 January 2014|agency=[[Reuters]]}}</ref> 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.<ref name="USDoJ"/><ref name="wsj">{{cite news|last=Kell|first=John|title=CareFusion to Pay $40.1 Million to Settle Kickback Allegations|url=https://www.wsj.com/article/BT-CO-20140109-709237.html|accessdate=19 January 2014|newspaper=The Wall Street Journal|date=9 January 2014}}</ref> The CEO called the kickback allegations "surprising" while his attorney emphasized that the [[whistleblower]] lawsuit contains no allegations against the CEO.<ref>{{cite web |url= http://www.modernhealthcare.com/article/20140121/NEWS/301219952 |title=NQF panel member admits he got $11M from CareFusion, but calls kickback allegations surprising |last=Carlson |first=Joe |work=[[Modern Healthcare]]|accessdate=24 January 2014}}</ref>
In January 2014, the [[United States Department of Justice]] reached a USD $40.1 million settlement with CareFusion.<ref name="USDoJ">{{cite web|title=CareFusion to Pay the Government $40.1 Million to Resolve Allegations That Include More Than $11 Million in Kickbacks to One carefusion-settlement-idUSBREA081A520140109|accessdate=19 January 2014|newspaper=reuters.com|date=9 January 2014|agency=[[Reuters]]}}</ref> The Department of Justice alleged that CareFusion violated the False Claims Act by promoting the sale of its drug ChloraPrep for uses that were not approved by the [[FDA]]. ChloraPrep is the commercial name under which CareFusion produced the drug [[chlorhexidine]], used to clean the skin before surgery. Chlorhexidine-alcohol has been proven to be a superior cleansing product when compared to the other popular cleansing agent, [[povidone-iodine]], therefore preventing surgical site infections after clean-contaminated surgeries.<ref>{{Cite journal|last=Darouiche|first=Rabih O.|last2=Wall|first2=Matthew J. Jr.|last3=Itani|first3=Kamal M.F.|last4=Otterson|first4=Mary F.|last5=Webb|first5=Alexandra L.|last6=Carrick|first6=Matthew M.|last7=Miller|first7=Harold J.|last8=Awad|first8=Samir S.|last9=Crosby|first9=Cynthia T.|date=2010-01-07|title=Chlorhexidine–Alcohol versus Povidone–Iodine for Surgical-Site Antisepsis|url=http://dx.doi.org/10.1056/NEJMoa0810988|journal=New England Journal of Medicine|volume=362|issue=1|pages=18–26|doi=10.1056/nejmoa0810988|issn=0028-4793|pmid=20054046}}</ref> In 2017, this case was called into question and is currently under review by the [[United States Department of Justice|DOJ]] because the lead attorney for the DOJ serving as Assistant Attorney General in the case, [[Arrest of Jeffrey Wertkin|Jeffery Wertkin was arrested]] by the FBI on January 31, 2017 for allegedly attempting to sell a copy of a complaint in a secret whistleblower suit that was under seal.<ref>{{Cite web|url=http://www.nationallawjournal.com/id=1202778867156/Whistleblower-Lawyers-Fret-Over-Leaks-After-Akin-Gump-Partners-Arrest|title=Whistleblower Lawyers Fret Over Leaks After Akin Gump Partner’s Arrest|website=National Law Journal|access-date=2017-09-06}}</ref><ref>{{Cite web|url=http://fortune.com/2017/02/08/fbi-lawyer-whistleblower/|title=Lawyer Charged for Trying to Sell Secret Tech Whistleblower Case|last=Roberts|first=Jeff John|website=Fortune|access-date=2017-09-06}}</ref> 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.<ref>{{cite web|url=https://www.propublica.org/article/hidden-financial-ties-rattle-top-health-quality-group|title=Hidden Financial Ties Rattle Top Health Quality Group|first=Marshall|last=Allen|date=28 January 2014|publisher=|accessdate=5 June 2017}}</ref> The NQF agrees that this is consistent with current [[Centers for Disease Control and Prevention]] (CDC) guidelines.<ref>{{cite web|url=http://www.modernhealthcare.com/article/20140228/NEWS/302289946/nqf-reviewing-2010-safe-practices-report-in-wake-of-kickback-claim|title=NQF reviewing 2010 Safe Practices Report in wake of kickback claim |website=Modern Healthcare |accessdate=5 June 2017}}</ref><ref>{{cite web|url=http://www.cdc.gov/hicpac/pdf/guidelines/bsi-guidelines-2011.pdf|title=Guidelines Library - Infection Control - CDC|website=www.cdc.gov|accessdate=5 June 2017}}</ref>

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.<ref>{{cite web|url=https://www.propublica.org/article/hidden-financial-ties-rattle-top-health-quality-group|title=Hidden Financial Ties Rattle Top Health Quality Group|first=Marshall|last=Allen|date=28 January 2014|publisher=|accessdate=5 June 2017}}</ref> The NQF agrees that this is consistent with current [[Centers for Disease Control and Prevention]] (CDC) guidelines.<ref>{{cite web|url=http://www.modernhealthcare.com/article/20140228/NEWS/302289946/nqf-reviewing-2010-safe-practices-report-in-wake-of-kickback-claim|title=NQF reviewing 2010 Safe Practices Report in wake of kickback claim |website=Modern Healthcare |accessdate=5 June 2017}}</ref><ref>{{cite web|url=http://www.cdc.gov/hicpac/pdf/guidelines/bsi-guidelines-2011.pdf|title=Guidelines Library - Infection Control - CDC|website=www.cdc.gov|accessdate=5 June 2017}}</ref>


== Business segments ==
== Business segments ==

Revision as of 17:16, 6 September 2017

CareFusion Corporation
Company typeSubsidiary of Becton Dickinson
IndustryMedical Technology
Founded2009
HeadquartersSan Diego, CA U.S.
Area served
Worldwide
Key people
Kieran Gallahue
(Chairman and CEO)
ProductsMedical devices
Clinical services
Number of employees
15,000 (2012)
Websitecarefusion.com

CareFusion was a global medical technology corporation serving the health care industry. The company specialized in two areas: reducing medication errors and prevention of health care-associated infections. The company manufactured health care technologies including Alaris IV pumps, Pyxis automated dispensing and patient identification systems; AirLife, AVEA and LTV series of ventilators and respiratory products; ChloraPrep skin prep products; MedMined services for infection surveillance; V. Mueller and Snowden-Pencer surgical instruments and a line of products that support interventional medicine.[1] CareFusion employed approximately 15,000 people worldwide.

On October 5, 2014, BD announced its acquisition of CareFusion for $58 USD per share in cash and stock, or a total of $12.2 billion, to create a global leader in medication management and patient safety solutions.[2] The acquisition was completed on March 17, 2015.[3]

History

Origins

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.[4]

Acquisitions

On May 17, 2010, CareFusion acquired Medegen, Inc. for US$ 225 million in cash.[5] On February 1, 2011, Kieran T. Gallahue was named CareFusion's chairman and CEO.[6] 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.[7] In November 2012, CareFusion acquired Intermed Equipamento Medico Hospitalar Ltda, a privately held respiratory technologies company based in Cotia, Brazil. Intermed designs, manufactures and markets ventilators and respiratory care devices for infant, pediatric and adult patients that are used in hospitals in Brazil, Latin America and Europe.[8]

On November 18, 2013, CareFusion acquired Vital Signs Inc., a medical device manufacturing business, with the exception of European operations from GE Healthcare.[9][10] In 2013, CareFusion bought 40% of the Israeli company Caesarea Medical Electronics.[11]

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.[12] The Department of Justice alleged that CareFusion violated the False Claims Act by promoting the sale of its drug ChloraPrep for uses that were not approved by the FDA. ChloraPrep is the commercial name under which CareFusion produced the drug chlorhexidine, used to clean the skin before surgery. Chlorhexidine-alcohol has been proven to be a superior cleansing product when compared to the other popular cleansing agent, povidone-iodine, therefore preventing surgical site infections after clean-contaminated surgeries.[13] In 2017, this case was called into question and is currently under review by the DOJ because the lead attorney for the DOJ serving as Assistant Attorney General in the case, Jeffery Wertkin was arrested by the FBI on January 31, 2017 for allegedly attempting to sell a copy of a complaint in a secret whistleblower suit that was under seal.[14][15] 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.[16] The NQF agrees that this is consistent with current Centers for Disease Control and Prevention (CDC) guidelines.[17][18]

Business segments

Most recently CareFusion had two business segments, providing the following products

  • Dispensing: Pyxis medication and supply automation products
  • Infusion: Alaris Infusion pump and infusion safety products
  • Respiratory: AVEA, LTV series of ventilators, Intermed ventilator and AirLife respiratory accessories which provided the following products and services
  • Infection Prevention and Surveillance: ChloraPrep CHG patient preoperative skin preparation MaxPlus needleless connectors and MedMined infection surveillance services
  • Medical Specialties: V. Mueller and Snowden-Pencer surgical instruments, IMPRESS instrument tracking software, AVAmax and AVAflex brands for vertebroplasty and kyphoplasty procedures, Nicolet neurodiagnostic instruments and PleurX catheter drainage products[19]

References

  1. ^ About CareFusion. Archived December 9, 2010, at the Wayback Machine
  2. ^ Cortez, Michelle (5 October 2014). "Becton Dickinson Agrees to Acquire CareFusion for $12.2B". Bloomberg.
  3. ^ Fikes, Bradley J. "$12B CareFusion purchase final". Retrieved 5 June 2017.
  4. ^ "News Release issued by CAH". www.sec.gov. Retrieved 2017-09-06.
  5. ^ "CareFusion to Acquire Medegen for $225 Million". San Diego Union Tribune. Retrieved 2017-05-02.
  6. ^ "New Leader at CareFusion". Retrieved 5 June 2017.
  7. ^ "CareFusion To Acquire Brazilian Respiratory Company Intermed". PR Newswire. Retrieved 2017-05-02.
  8. ^ "CareFusion announces acquisition of UK Medical". Building Better Healthcare. Retrieved 2017-05-02.
  9. ^ Mason, Everdeen (2013-11-18). "CareFusion to Acquire GE Health-Care Unit for $500 Million". Wall Street Journal. ISSN 0099-9660. Retrieved 2017-09-06.
  10. ^ "CareFusion closes Vital Signs purchase – MassDevice". www.massdevice.com. Retrieved 2017-09-06.
  11. ^ The boycott movement is losing the battle - for now
  12. ^ "CareFusion to Pay the Government $40.1 Million to Resolve Allegations That Include More Than $11 Million in Kickbacks to One carefusion-settlement-idUSBREA081A520140109". reuters.com. Reuters. 9 January 2014. {{cite web}}: |access-date= requires |url= (help); Missing or empty |url= (help)
  13. ^ Darouiche, Rabih O.; Wall, Matthew J. Jr.; Itani, Kamal M.F.; Otterson, Mary F.; Webb, Alexandra L.; Carrick, Matthew M.; Miller, Harold J.; Awad, Samir S.; Crosby, Cynthia T. (2010-01-07). "Chlorhexidine–Alcohol versus Povidone–Iodine for Surgical-Site Antisepsis". New England Journal of Medicine. 362 (1): 18–26. doi:10.1056/nejmoa0810988. ISSN 0028-4793. PMID 20054046.
  14. ^ "Whistleblower Lawyers Fret Over Leaks After Akin Gump Partner's Arrest". National Law Journal. Retrieved 2017-09-06.
  15. ^ Roberts, Jeff John. "Lawyer Charged for Trying to Sell Secret Tech Whistleblower Case". Fortune. Retrieved 2017-09-06.
  16. ^ Allen, Marshall (28 January 2014). "Hidden Financial Ties Rattle Top Health Quality Group". Retrieved 5 June 2017.
  17. ^ "NQF reviewing 2010 Safe Practices Report in wake of kickback claim". Modern Healthcare. Retrieved 5 June 2017.
  18. ^ "Guidelines Library - Infection Control - CDC" (PDF). www.cdc.gov. Retrieved 5 June 2017.
  19. ^ CareFusion Fact Sheet.
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