Medsphere Systems and Phoenix Health Systems Complete Merger

Companies unite to broaden services and move toward comprehensive, interoperable IT solutions and services for healthcare providers across the continuum of care

Dallas, TX, and Carlsbad, CA —Medsphere Systems Corporation and Phoenix Health Systems today announced the merger of the two companies, effectively adding Phoenix’s comprehensive and diverse information technology (IT) expertise to Medsphere’s existing focus on VA VistA and VistA-derived systems. Moving forward, Phoenix Health Systems will retain its name and operate as a division of Medsphere; the expanded company will now offer a broader menu of IT services, including hosting and cloud-based interoperability, IT service desk support and project management around many EHR solutions, including enterprise OpenVista.

Derived from the proven VistA system developed by the U.S. Department of Veterans Affairs, OpenVista is a comprehensive EHR combining both clinical and financial applications. Medsphere has enhanced VistA to meet the particular functional needs of federal, non-federal and international hospitals and the availability, i.e, mobility, requirements of modern physicians. Phoenix provides an expansive service set that encompasses systems implementation, compliance project management (e.g., Meaningful Use and ICD-10), service desk, end-user device management, infrastructure support, application management and IT leadership. Together, Medsphere and Phoenix will ensure end-to-end support and interoperability for hospitals facing a wide variety of IT challenges.

“Medsphere is very pleased to announce this merger with Phoenix, which really is the most natural thing we could do given our existing relationship and complementary skill sets,” said Medsphere President and CEO Irv Lichtenwald. “Our focus on hospitals with financial constraints and limited internal health IT support clearly suggests a need to grow into a one-stop shop for all health IT services. It makes good business sense for Medsphere and Phoenix, and it creates a single source of systems and support for our clients.”

The breadth of services now available under the Medsphere banner will give hospitals cost-cutting options such as remote or cloud-based EHR access, an outsourced help desk, additional training and other system efficiencies. It will also create more resources devoted to complete interoperability between OpenVista or another EHR and all third-party applications.

“The unification of Medsphere and Phoenix is very exciting for us because it enables us to apply our expertise where we think it will be most valuable—on affordable, adoptable and flexible systems that improve patient care,” said Phoenix Chairman and CEO Ronald Gue. “Phoenix and Medsphere have clients across the continuum of care, and Phoenix has the experience and personnel to enhance the effectiveness of IT adoption regardless of clinical setting or hospital size. We look forward to working with Medsphere and Phoenix clients to cut costs, improve workflows and create greater efficiencies.”

About Phoenix Health Systems

Headquartered in Richardson, Tex., a Dallas suburb, Phoenix Health Systems is a national information technology solutions provider with over 20 years of healthcare IT consulting and outsourcing experience. Phoenix enables clients to resolve critical challenges such as Meaningful Use compliance, systems selection and implementation, ICD-10 conversion, and privacy and security compliance.

Phoenix offers customized, cost efficient outsourcing solutions such as onshore service desk support, IT infrastructure management, full IT outsourcing and legacy systems transition. Phoenix enables any healthcare organization, no matter its size, to achieve long-term objectives including administrative cost reduction, increased efficiencies, improved patient safety and regulatory compliance.

About Medsphere and OpenVista

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