A Healthy Comeback For Rod Canion?

AT COMPAQ COMPUTER, ROD Canion was knocked for losing focus on market shifts--pushing high-cost PCs when consumers were moving to cheaper models. Forced out by the board in 1991, Canion has come back as a consultant on, of all things, cost-cutting. His Houston-based Insource Management Group helps hospitals and HMOs streamline operations, such as purchasing and patient records, with new information systems. It will even guarantee that savings will cover consulting fees.

Health-care systems redesign is a red-hot market for such consultants as Electronic Data Systems. Insource doesn't release revenues, but it has grown quickly to 100 people and has plans to go nationwide within three years. Canion fixed on health care after meeting and hiring company President Ivo Nelson, founder of EDS's Health Care Div. Big Insource clients: Texas Children's Hospital and Oklahoma Health Systems, an HMO.

Canion, now 50, doesn't talk much about Compaq, yet he does go to great lengths to keep up with the computer industry. An avid pilot, he wings to computer shows in his eight-seat Citation II jet. And Canion buys the latest laptop models. New Compaqs, too.