HIS Vendor Medsphere Merges with Consultancy Phoenix Health

Over the years, hospital information systems vendor Medsphere Systems and consultancy Phoenix Health Systems have had a partnership. Now, the partners have merged following a swap of Phoenix stock for Medsphere stock.


Over the years, hospital information systems vendor Medsphere Systems and consultancy Phoenix Health Systems have had a partnership.

When Medsphere clients wanted information technology hosting or outsource services, the company often would refer them to Phoenix, says Irv Lichtenwald, president and CEO.

Now, the partners have merged following a swap of Phoenix stock for Medsphere stock. Phoenix will retain its name and operate as a division of Medsphere. Terms of the merger were not disclosed.

Also See: How Acquisitions Can Bring IT Security Risks

Medsphere sells a commercialized version of the Department of Veterans Affairs’ VistA electronic health records system along with a suite of ancillary software and implementation services, and has done more than 400 implementations. It also provides IT strategic, revenue cycle optimization, ICD-10 and meaningful use consulting services.

Now, Medsphere has more firepower for those services and gains several new service lines with Phoenix, including systems/process optimization, outsourced IT management and infrastructure hosting or outsourcing, says Lichtenwald.

Most important, the merger fills a need that many prospective clients seek, he adds. “People like to do one-stop shopping.”

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