FOR IMMEDIATE RELEASE

ALISO VIEJO, CA, March 18, 2008 - Medsphere® Systems Corporation, the leading provider of Open Source healthcare IT solutions, today announced the successful implementation of the company's OpenVista® electronic health record (EHR) system at Memorial Hospital of Sweetwater County. OpenVista serves as the core software element in the Rock Springs, Wyoming hospital's new fully-computerized clinical and accounting system, which is part of a comprehensive initiative requiring integration of several enterprise-class software packages.

Memorial Hospital's new end-to-end electronic system covers all facility functions from accounting and payroll to patient records and drug dispensing. All six software applications in the OpenVista EHR suite — the Health Information Management System (HIMS), the Clinical Information System (CIS), and Laboratory, Pharmacy, Radiology, and Nutrition and Food Service applications — have been incorporated by the hospital. Through interfaces, OpenVista is also communicating effectively with other major applications implemented as part of the project, including QuadraMed's Patient Revenue Management and several Pyxis® automated medication management stations located in each nursing department.

"It would have cost over $500,000 to bring us current with our previous system, and we estimated a $5 million investment in order to grow the system further. OpenVista came in at substantially less," said Linda Simmons, vice president of operations and chief nursing officer for Memorial Hospital. "Because OpenVista has roots in the VA's VistA solution, many of our doctors had some familiarity with the interface. That fact, plus the quarterly updates that Medsphere builds into its product, convinced us that we could build a first-class system that people would actually use."

While the 99-bed hospital's senior administrators realized the shift to a new clinical and financial system would be a major event — and possibly a major headache — Simmons was confident in the integrated nature of OpenVista and the implementation plan. "We knew it would be easier than changing disparate components one at a time," she noted. "I felt the most stressful element would be the first day of use."

After loading the software in the spring of 2007, Memorial Hospital and the Medsphere implementation team began integrating the various packages, a process made easier by OpenVista's combination of XML and other valuable protocols. Medsphere then began the process of working with department personnel to both build templates, and to train lead staff in the system.

"OpenVista helped make the transition easy because it's a fluid system. Users can build much of the documentation and workflows themselves," Simmons said. "It lets you establish the work methods that are best for your facility. With OpenVista at the core, we believe our new electronic system will give us the efficiency, cost savings and improved patient care we're hoping for."

The implementation of OpenVista as the core clinical structure makes it possible for Memorial Hospital to enhance facility function, reduce costs, and improve patient outcomes. It also makes the facility eligible for consideration as a HIMSS Analytics Stage 6 facility, which would place it among only a handful of hospitals nationwide that have implemented comprehensive EHR systems in pursuit of more efficient workflows and better patient care. With the Go Live, Memorial Hospital becomes the most recent active participant in the Healthcare Open Source Ecosystem, in which current OpenVista users are already collaborating on development and enhancement efforts.

"We applaud both the decision by Memorial Hospital to implement OpenVista and the dedication with which they approached the implementation process," said Medsphere CEO Michael J. Doyle. "We're confident that, in the near future, Memorial Hospital will be justifiably recognized alongside Midland Memorial Hospital and other Medsphere clients as a HIMSS Analytics Stage 6 facility."

The VistA platform on which OpenVista is based is used in all U.S. Department of Veterans Affairs (VA) facilities and is credited with helping turn the VA into a national leader in quality patient care. Medsphere has enhanced VistA to meet the needs of non-VA healthcare providers and added professional services, ongoing product development, and 24x7 technical support, providing a professional Open Source delivery model without expensive up-front proprietary license fees.

The Go Live at Memorial Hospital is only one in a recent series of events at Medsphere that includes Doyle taking over leadership as CEO, Rick Jung coming on board as chief operating officer, Dr. Edmund Billings' appointment as chief medical officer, and Scott McMullen joining as vice president of engineering. The company's current activities include OpenVista implementations at Lutheran Medical Center in Brooklyn, New York, Memorial Hospital of Sweetwater County in Rock Springs, Wyoming, and facilities in the West Virginia Department of Health and Human Resources (WV DHHR). The system is already in use at LA's Century City Doctors Hospital, Midland Memorial Hospital in Midland, Texas, several WV DHHR facilities, the U.S. Department of Health and Human Services' Indian Health Service, and a variety of other care delivery organizations.

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