Question-and-Answer Session
Operator
Thank you, sir. We will now begin the question and answer session. (Operator instructions) The first question comes from Lisa Gill. Your line is open. State your affiliation, please.
Lisa Gill – JP Morganl
Hello. JP Morgan. Good morning. John or Jeff, I was wondering if maybe you could just address the disease management contract and if we back it out, the tech margins still look like they’re about 11.1% in the quarter, so just getting closer to that low teens number and turning much better than we expected. Can you just give us an idea of what’s driving that? Is it the Per-Se synergy capture coming on-line sooner than expected, or is there something else that’s driving that?
Secondly, John you talked about the fact that you signed a number of contracts that were multi-product on the IT side. Can you just talk about some of the cross-sell of the multi-products that you’re talking about, or what you’re seeing as far as the trend goes?
John Hammergren
Thank you for the questions. We have made significant progress in our technology solutions segment, even setting aside the disease management contract, as you noted, Lisa. We’re very pleased with that progress, and it’s really coming from a myriad of factors, and it’s coming in spite of a significant increase in research and development expenses and selling expenses and other investments we’re making into the business. So, I am pleased, and it’s really coming in multiple areas.
Clearly, the strength in our ambulatory products and resource management products in the quarter were very strong. As you might recall, we talked about the power of our clinical products for some time, and we began about two years ago to start talking about the building presence we have in outside the hospital, creating a healthcare information company as opposed to just a hospital information company. So you’re beginning to see strength in ambulatory, the physician office markets. You’re beginning to see strength in revenue cycle management. We talked about Relay Health on the call and the power of our transaction businesses that we’re building, and clearly having the integration of Per-Se go well and be ahead of schedule is also fueling growth. I would say across the board, we see strength in that business, and we continue to believe that the disease management business will be very strong. It’s just going to be a little lumpier than the rest of the business, by the nature of the recognition of these contracts.
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