As the local health IT industry gears up for next week's HL7 International working group meeting in Sydney, the big news this week has come from the US, where the full details of the massive $US145 million fine levied against practice management system vendor Practice Fusion were revealed.
Practice Fusion, which first developed a PMS in 2008 and spruiked it to small, independent family doctor practices from its headquarters in San Francisco, gained substantial market share when it decided to offer the system for free. It quickly gathered investors and was a successful company, earning its revenue from advertising sales, predominantly from pharmaceutical companies. Practices were able to get an ad-free version by paying $100 a month, but few did.