Atlanta Simione Central Holdings continued its consolidation strategy by agreeing to purchase privately held CareCentric Solutions, a Duluth, Ga.-based vendor of point-of-care health care information systems, and Outcomes Planner, a clinical documentation package, from the Visiting Nurse Service of Greater Woonsocket, R.I.

Newly issued preferred stock convertible into common stock will finance the purchase of CareCentric Solutions, which follows Simione's May 26 decision to merge with health care software vendor MCS Inc., Pittsburgh. The value of the purchase was tentatively set at $8.9 million but is subject to various factors, including the market price of Simione Central stock during the fourth quarter of its fiscal year 2000, officials said. The value of the Outcomes Planner purchase was not announced.

CareCentric produces the Smart ClipBoard, a Windows-based, pen-compatible, point-of-care clinical information system. The Outcomes Planner will integrate with the Smart ClipBoard.

"This is an extremely important step in our plan to return Simione to the leadership position in home health care solutions," said Barrett O'Donnell, Simione chairman and chief executive officer.

Simione hopes to close the purchase within 60 days.

Meanwhile, the Justice Department has elected not to join a whistle-blower lawsuit that charges Simione with playing a part in alleged Medicare fraud by Olsten Corp. and Columbia/HCA.

Simione officials said they feel "vindicated" that the government will not pursue the suit, filed by former Olsten Corp. vice president Donald McLendon. He has the option of pursuing the suit on his own. -K.G.