VeriChip Corporation (NASDAQ:CHIP) ("VeriChip" or the "Company"), a provider of radio frequency identification (RFID) systems for healthcare and patient-related needs, announced today that it is re-launching its VeriMed™ Health Link electronic health records system. The Company believes its history and expertise in patient identification and EHRs will position it to benefit from stimulus funds provided under the American Recovery and Reinvestment Act (ARRA) of 2009, which authorized $23 billion in spending for healthcare information technology, with a concentration on the implementation and adoption of EHRs.
In 2004, the Company received FDA clearance of its VeriMed™ Health Link patient identification system, incorporating the implantable RFID microchip (the VeriChip), a handheld scanner for emergency room personnel and an online, electronic, personal health record. In early 2008, the Company changed the name of this system to Health Link and has enrolled a total of 536 patients in the Health Link EHR.
In July 2008, the Company sold a significant portion of its assets to The Stanley Works and substantially diminished its marketing efforts related to the Health Link system. In November 2008, the Company's former Chairman and CEO, Scott R. Silverman, purchased a majority ownership position in the Company. Since then, management has examined a wide array of business opportunities including, but not limited to, re-launching the Health Link EHR. In July 2009, the Company received $4.4 million previously held in escrow related to The Stanley Works transaction.
Commenting on the re-launch of Health Link, Mr. Silverman, VeriChip's Chairman, stated, "For years, VeriChip has been an outspoken proponent of a nationwide, interoperable electronic health records system to decrease medical errors, reduce costs for providers and insurers, and ensure the best standard of care for patients. Since our FDA clearance in 2004, we have been recognized as a leader in patient identification and electronic medical records and have played a significant role in their evolution. Not only do we offer a robust and stable, fully functioning EHR, but VeriMed Health Link offers the only secure means to access electronic health information that is guaranteed to always be with the patient."