DAOU SYSTEMS, INC.

DAOU SYSTEMS, INC.

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Company Overview
The company is engaged in the provision of computer programming services. It was incorporated in 1986. The registered business office of the company is located in Chevy Chase, Maryland.
The company offers a wide range of services such as system integration, system for development, as well as communication and system control, finance, information, and package system development. It also provides software and hardware development, internet based enterprise system, and network integration business. In addition, the company covers document solution service business, network service business, and other related activities.
This provider of computer programming services is active and operational in the United States.
Business Summary
Daou Systems, Inc. (Daou) performs applications consulting and implementation, wireless and traditional network services, enterprise application integration, software engineering and database migration and conversions and integration of legacy systems with emerging technologies, such as wireless and other portable computing solutions, for the United States healthcare industry. The Company’s information technology (IT) offerings include data and voice networking, applications consulting and implementation, as well as operational and Internet solutions. It has provided services to more than 1,600 healthcare organizations, including many of the nation’s top 100 integrated delivery systems and middle-market payer organizations. Daou provides professional services exclusively for healthcare organizations.
Description and history
Daou Systems, Inc. (Daou), incorporated on July 16, 1987, performs applications consulting and implementation, wireless and traditional network services, enterprise application integration, software engineering and database migration and conversions and integration of legacy systems with emerging technologies, such as wireless and other portable computing solutions, for the United States healthcare industry. The Company’s information technology (IT) offerings include data and voice networking, applications consulting and implementation, as well as operational and Internet solutions. It has provided services to more than 1,600 healthcare organizations, including many of the nation’s top 100 integrated delivery systems and middle-market payer organizations.

Daou provides professional services exclusively for healthcare organizations. The Company organizes its business by markets, with specific focus areas in payers of healthcare services in the commercial markets, including health plans, insurance companies, managed care organizations and third-party administrators; providers of clinical services, such as community and urban hospitals and hospital systems, and government healthcare organizations, such as Veterans Health Administration, Department of Defense Military Health Service and the Department of Health and Human Services. Its services include application implementation and support, management and technology related business consulting, wireless and wired infrastructure and network services, application development and integration and Web-based portal solutions.

Payers of Healthcare Services

Daou’s payer services business is focused on providing application implementation and support, consulting in the areas of business process assessments and re-engineering, management consults and design, development and implementation of Web-based solutions addressing self-service requirements. The Company has developed a methodology that drives on-time, on-budget implementations. Transition services are provided to customers as they move their organizations through the myriad of changes that a system migration engenders. Daou also provides application technical support, in which specialists plan and implement solutions related to system and data conversions, custom interface development, integration engine support, data extracts, e-commerce services, report writing and automated document production and distribution.

Through the provision of application and operational systems support, customers get help in leveraging their initial investment to create ongoing returns. The Company focuses in areas where technology and operations often meet, including system and personnel transition management, system evaluation and improvement, operational evaluation and improvement, application modification and support, interim business office management and data consolidation and preparation.

Application procurement is the service where the Company provides expert assistance in system selection and clients are guided through the five critical stages of a successful procurement effort: planning, requirements definition, vendor evaluation, contract negotiations and pre-implementation planning. Application implementation services are provided by project managers, configuration strategists, configuration analysts and other specialized support personnel, all with implementation experience and knowledge of the methodology necessary to make the process go smoothly.

Through knowledge management/reporting services, Daou has assisted clients through development of strategy, system selection, implementation and deployment, and report development. Implementation project management is the initiation, continued driving and persistent follow-up of all activities and tasks throughout the continuum of the project lifecycle: planning/orient/design, load/development, test/train, go-live and post-implementation. Three key areas of focus are planning, people management and subject knowledge.

Providers of Healthcare Services

Daou’s provider services group is focused on two vital components of a healthcare organization’s infrastructure: the information technology itself and the experts who manage it. The Company assists the healthcare marketplace in the assessment, design, implementation, integration and support of legacy and emerging network services and systems. It provides solutions in key areas, including wireless technology, local area networks, including servers and active directories, security and application services. The Company has developed a Mobile Health Solutions approach, which includes offering technology strategic planning; voice, alert, notification and communication technologies; business process alignment and workflow assessment and design; end-user device selection, design and management, and application presentation, including the customization and development of Web-based portals. Daou also evaluates hardware and software requirements within customer sites, interprets and research development results, updates existing network designs and research-specific products and technologies of interest to customers.

The engagement period for mobile and wireless infrastructure design and implementation services generally range from three to nine months. However, the Company’s approach to the market is to extend project scope when requirements involve enterprise wide strategies that encompass a continuum of services from planning to implementation to long-term management services. Services are generally performed on a time and expense basis and billed semi-monthly or monthly. Certain projects, generally those with significant hardware components, are performed on a fixed-fee basis, with revenue recognized as services are performed. Government Healthcare Organizations

Daous’ government and integration services business has experience developing, implementing and/or supporting data extractions, commercial off-the-shelf product integration and module support for government healthcare organizations, including the Military Health System, the Indian Health Services, the Veterans Health Administration and the Department of Health and Human Services. The Company’s systems integration solutions enable government healthcare organizations to access information and communicate across the enterprise inspite of the fact that systems run on disparate platforms in different environments.

The Company’s government healthcare services include custom programming. Instrument interfaces are provided specialized reporting requirements, Web-enabled, back-end systems allowing real-time results and support for legacy and sunsetted systems. In system integration engines, Daou optimizes system integration engines and opening up multi-User MEMS processes (M/MUMPS)-based systems to current or emerging technologies through integration engine. Conversions and upgrades consist of fulfilling reporting requirements through data extraction, cleansing and scrubbing data warehouses and relational databases.

The engagement period for these services generally ranges from nine to 12 months, but varies depending on the size and complexity of the project. Services are typically invoiced semi-monthly or monthly on a time and expense basis.

Competitors include consulting firms, such as First Consulting Group, Inc., Capgemini, Superior Consultant Company (now ACS Healthcare Solutions), Deloitte Consulting, Accenture, The TriZetto Group, QCSI, Cerner Corporation, Science Applications International Corporation, SeeBeyond, Northrop Grumman, Unisys and Electronic Data Systems Corporation, Park City Solutions, Cisco and Johnson Controls.

Business Line
Engaged in the provision of computer programming services
Subsidiary

Advisor
ERNST & YOUNG LLP
IPO date
2/1997
US SIC Code
7373
Company Address
Suite 300
412, Creamery Way
City province or state postal code
19341, EXTON, PA
Phone: +1 610 594 2700
Fax: +1 610 594 7683
Country address: UNITED STATES OF AMERICA
Website url: www.daou.com