FOR IMMEDIATE RELEASE

Medsphere Awarded Contract with Indian Health Service To Expand Deployment of Agency's Electronic Health Record System

EHR Implementation Will Reach Over 100 Facilities by Late 2007


ALISO VIEJO, California, November 7, 2006 - Medsphere Systems Corporation, the leading commercial provider of open source-based electronic health record (EHR) systems and services, today announced a contract to expand deployment of its EHR technology at the hospitals and health centers operated by the U.S. Department of Health and Human Services' Indian Health Service (IHS). The agency currently has Medsphere-powered EHR installations at 67 facilities, and plans to roll out the system to 40 additional sites over the next year to help improve patient care and safety for American Indians and Alaska Natives.

The agreement includes a license for Medsphere software along with implementation, training, development and support services. Medsphere's advanced EHR functionality and easy-to-use graphical user interface enable authorized IHS clinicians to have point-of-service access to patient information stored in the agency's electronic Resource and Patient Management System (RPMS). The Medsphere platform also enables computerized provider order entry, clinical documentation, clinical decision support functions, and unique ambulatory care capabilities such as health maintenance, disease management, immunization tracking, patient education, and integrated behavioral health information for mental health and substance abuse providers.

Medsphere's platform is based on the highly regarded open source VistA EHR system developed by the U.S. Department of Veterans Affairs, used in all VA facilities, and credited with helping turn the VA into a leader in quality patient care. The IHS' RPMS system is a derivative of VistA that has been tailored to the needs and mission of the Indian Health Service, including enhancements related to well child care, public health, and clinical performance reporting.

"This contract is a big step toward providing all IHS facilities with the benefits of electronic health records, from the availability of complete patient information in a single structured record and tools for population health management to computerized order entry that eliminates errors caused by illegible handwriting," said Dr. Kenneth W. Kizer, Chairman and CEO of Medsphere Systems. "With its ongoing commitment to this initiative, IHS continues to be an EHR role model for the rest of the healthcare industry."

Medsphere's use of VistA as the cornerstone of its EHR system significantly reduces the cost of EHR deployments by reducing upfront proprietary license fees, while also providing a platform that has been tested and proven in the VA for many years. Medsphere also provides professional services, ongoing enhancements, and 24x7 technical support under the professional open source delivery model, offering the benefits of open source software with the safety net of an enterprise software vendor.

The company's integrated suite of clinical and administrative modules can be deployed across acute, ambulatory, and long-term care environments. These modules cover the breadth of patient care functions including patient information management, health information management, laboratory, pharmacy, radiology, nutrition and food service. They also include a robust clinical information system complete with clinical documentation, computerized provider order entry and clinical reminders.


About the Indian Health Service

The Indian Health Service (IHS), an agency within the Department of Health and Human Services, is responsible for providing federal health care services to American Indians and Alaska Natives. The provision of health services to members of federally-recognized tribes grew out of the special government-to-government relationship between the federal government and Indian tribes. The IHS and numerous autonomous Tribal programs provide health services to approximately 1.8 million American Indians and Alaska Natives through a network of 48 hospitals and several hundred rural and urban clinics in 35 states.


About Medsphere Systems Corporation

As the Open Source source for healthcare, Medsphere is revolutionizing the industry by delivering commercially supported software based on the U.S. Department of Veterans Affairs' proven VistA electronic health record (EHR). Medsphere offers healthcare an economically sustainable and comprehensive solution in OpenVista®, a portfolio of products and professional services for hospitals, clinics, and integrated delivery networks. The company addresses the capital constraints of the healthcare industry through an innovative subscription-based pricing model. Medsphere's experienced team of healthcare technology professionals and unique suite of implementation tools deliver a fluid transition to a comprehensive healthcare information technology solution. Founded in 2002, Medsphere is backed financially by Azure Capital Partners, Thomas Weisel Venture Partners, and the Wasatch Venture Fund. For more information, visit www.medsphere.com.


Contacts


Corporate:
Rick Jung
Chief Operating Officer
Medsphere Systems Corporation
(949) 297-8182 office
rick.jung@medsphere.com
  Media:
Marisa Borgasano
Schwartz Communications
(415) 512-0770 (office)
medsphere@schwartz-pr.com

General Inquiries

info@medsphere.com