Firm recasts to offer surgical sponge tracking technology.FROM hedge fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" to health care. That's where Santa Monica Santa Monica (săn`tə mŏn`ĭkə), city (1990 pop. 86,905), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1886. Tourism and retailing are important, and the city has motion-picture, biotechnology, and software industries. hedge fund operator Milton "Todd Ault finds himself now that he has taken over as chairman and chief executive of Franklin Capital Corp., which is making itself over as a surgical safety business. Ault's investment company, Ault Glazer & Co. Investment Management LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , purchased a 48 percent stake in Amex-traded Franklin Capital last year and this month Franklin spent $4 million to purchase a startup that promises to eliminate the problem of surgical sponges left behind in patients' bodies. SurgiCount Medical Inc. has developed a system that uses a scanning device See scanner. to help track sponges during and after surgery. A leading Harvard University Harvard University, mainly at Cambridge, Mass., including Harvard College, the oldest American college. Harvard College Harvard College, originally for men, was founded in 1636 with a grant from the General Court of the Massachusetts Bay Colony. researcher on surgical safety is helping refine the technology. "This is a serious issue. We make it impossible for the nurse, scrub tech and circulating nurse circulating nurse A nurse who participates in a surgical procedure, coordinating, planning and implementing all the nurse-related activities during an operation, but who has not scrubbed with the surgical team itself. See Scrub nurse. not to mess up the sponge count," said Ault, who is still running the fund. The company envisions providing the scanning device free to hospitals in exchange for having them buy sponges from the company--a classic razor and blade business model in a lucrative $650 million annual market. Ault, who is selling off Franklin's existing businesses, including a stake in a radio network, claims the system will add only $4 to the cost of a surgery. Franklin's stock has gained since Ault took a position in the company in May and took over in late October. Shares closed at $17.95 on Feb. 15, up from just over $1 a share in April 2004. The company will ask shareholders at its March 25 meeting to change its name to Patient Safety Technologies Inc. |
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