Mediware develops, markets, licenses, implements, services and supports clinical management information solutions including: blood and biologics management solutions, medication management solutions, and following the acquisition of assets of SciHealth, Inc (“SciHealth”) . in June 2009, performance management solutions. The Company licenses and sells its blood and biologics management solutions to hospitals and blood donor and plasma centers. We license our medication management solutions to hospitals, long-term care and behavioral health facilities. Mediware licenses and sells its blood donor recruitment and management solutions to blood and plasma donor centers through its Blood Center Technologies (“BCT”) business group. Performance management solutions can be licensed and sold to Mediware’s current and future blood management and medication management customers as well as to hospitals, donor centers, and long-term care and behavioral health facilities that have not licensed our other products.
The software systems that Mediware provides to its customers typically consist of the Company's proprietary application software, third-party licensed software and third-party hardware. Mediware licenses its software systems to customers on either a perpetual basis or a monthly subscription basis. Customers that license the software on a perpetual basis typically make an up-front payment for the software license fees and payments for support services on an annual basis. In contrast, those customers that license software on a monthly subscription basis pay Mediware an initial start-up fee and a monthly fee for use and support of Mediware’s proprietary software. Under both payment models, customers may purchase services, including implementation and additional consultation services, for additional fees which are generally billed as incurred. Historically, Mediware’s medication management and blood management and biologics management software systems have been licensed on a perpetual basis and the blood center and plasma solutions and medication management products acquired through our acquisition on November 20, 2008 of assets of Hann’s On Software (“HOS”) have been licensed on a subscription basis. The performance management software is licensed on both perpetual and subscription bases. Mediware intends to continue offering its customers the opportunity to license the software on either a perpetual or subscription basis, but anticipates that over time an increased number of its systems will be licensed on a subscription basis.
Mediware markets its performance management, blood donor and its blood and biologics management products primarily in the United States. The Company markets its medication management solutions in the United States and in the United Kingdom, with different software systems designed for the specific requirements of each market. The Company has operations in the United Kingdom relating to the systems licensed and sold primarily in that market as well as Ireland and South Africa. All other operations are in the United States.