Business
WebMD uncovers financial mistakes
NEWS IN BRIEF — Posted Oct. 11, 2004
WebMD Corp. said Sept. 23 that it had discovered "some evidence" of accounting improprieties but does not believe it will have to restate prior financial results.
The alleged improprieties occurred and artificially inflated the revenue of Medical Manager before its acquisition of the practice management software company, WebMD said.
The New Jersey-based company has been under investigation by federal authorities for more than a year. WebMD believes the investigations involve a $5.5 million restatement that Medical Manager made in 1999.
WebMD also announced that Kevin Cameron, a special adviser to its chair, Martin J. Wygod, replaced Roger Holstein as CEO effective Oct. 1. Holstein was named CEO of WebMD Health, the online health information unit that WebMD is considering spinning off as a separate publicly traded company. Holstein will remain on WebMD's board of directors.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/10/11/bibf1011.htm.
