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OHR Acquires The
Stolas Group
Product
Differences
Organizational
Impact
Effect on
Clinics
Goals for the
Combined Organization
OHR Acquires The Stolas Group
On July 1, 2002 Occupational Health Research (OHR) of Skowhegan, Maine acquired The Stolas Group of
Fresno, California in a cash transaction. Both companies produce occupational medicine
practice-management software. OHR produces SYSTOC®, which is currently in use in over
500 hospitals and clinics, and The Stolas Group produces StolaSystem®, currently in
use in over 200 locations. As a result of this acquisition, hospital and clinic occupational health
programs using either SYSTOC or StolaSystem practice-management software programs now represent more
than a third of the estimated occupational medicine market: by far, the largest grouping of
occupational medicine programs in the country. As such, they are positioned to become the major force
in shaping how employers and insurers will view the practice of occupational medicine in this
country.
The two companies first discussed combining forces in 1996. These discussions accelerated in early
2002, and culminated with an agreement to merge on July 1, 2002. In a letter informing StolaSystem
users of the acquisition, Steven Schumann, MD, CEO of The Stolas Group wrote: “The affiliation
of OHR and Stolas will offer users of both SYSTOC and StolaSystem combined assets that will make the
whole greater than the sum of its parts. We believe that each company has skills and capabilities
that, when combined, will assure both groups of users an exciting array of resources….Both
applications, SYSTOC and StolaSystem, will continue to be enhanced, expanded, and supported, so that
users will continue to benefit from the practice-management system they selected. They will both
remain current with advanced technology. In addition, users of each system will also enjoy the
opportunity to access even more resources.”
William Newkirk, MD, FACPM, Chairperson of the Board of Directors of Occupational Health Research,
wrote to users of SYSTOC: “Combining these two organizations makes good sense for SYSTOC users.
It will expand OHR’s technical capabilities and will further enhance OHR’s position as
the standard for occupational medicine software….We are very excited about this
development.”
Product
Differences
When asked about the differences between the products, Michael Keller, President of OHR, offers the
following: “StolaSystem was built for speed and simplicity; SYSTOC was built for
comprehensiveness and flexibility. These differences give each product certain advantages over the
other. Each product has a very satisfied and loyal user base.”
Organizational Impact
Regarding the consolidation, Dr. Schumann comments: “The corporate cultures are similar; they
share a common vision of occupational health. The joining together produces a convergence of energy
that is very positive….There have been some layoffs at the Stolas Group caused by duplication.
The (employment) benefits are a net plus for Stolas employees.”
Dr. Newkirk reports: “There have not been any changes for employees at OHR.” Dr. Schumann
joins OHR as Senior Vice President and Medical Director. He will advise on new products, work with
large provider groups, coordinate future acquisitions, and represent OHR at educational conferences
as a lecturer. Dr. Newkirk’s and Mr. Keller’s roles will remain the same.
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Effect on
Clinics
Will customers using either software application experience any changes? According to Dr. Newkirk,
the customers on both sides should not notice any difference in the short term. Technical support for
SYSTOC users will continue to come from OHR in Skowhegan and technical support for StolaSystem will
continue to come from Stolas in Fresno. Over the long term, both sets of users will benefit as
superior features of each piece of software become integrated into the other. Dr. Newkirk thinks that
some larger occupational medicine programs may choose to use SYSTOC for one part of their business
and StolaSystem for another.
Both Dr. Newkirk and Dr. Schumann report a very positive response from their customers thus far. The
market views it as two good companies coming together. Both companies have a history of good
presence, good product, and quality service.
Mike Keller notes: “The exchange of information is a plus. The combined user base will have
clout. Longer term, the over 700 SYSTOC/Stolas clinics will be in the driver’s seat on the data
pipeline. Any insurance company or group wanting to tie to occupational medicine clinics will want to
approach these clinics as a group. This will give the clinics the power to determine the
standards.”
 Goals for the Combined Organization
When asked about the goals for the combined entity, Dr. Schumann replies, “The 30- to 60-day
goal is to make the transition smooth, to integrate resources and staff, and to strategize for the
future.” William Newkirk envisions the following goals: “to accelerate growth, increase
spending in the areas of technology and development, and develop new products for parallel
markets.” Mike Keller hopes to see increased efficiency from the combination, as employees
learn to sell and support both products.
The acquisition of Stolas and StolaSystem adds another product to Occupational Health
Research’s existing occupational health software solutions, which also include the software to
manage The Ohio Employee Health Partnership, a unique MCO in Ohio that is owned by a group of
hospitals, physicians, and Occupational Health Research. The acquisition of The Stolas Group is
completely in tune with Occupational Health Research’s corporate mission, which is to improve
the healthcare of workers and the healthcare system in the United States through technology, a
network of healthcare facilities, and research. This acquisition is likely to have a positive effect
on all stakeholders, and we will see the ramifications of it far into the future.
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