Medsphere Systems gets $32M to address demand, mull acquisitions
Privately held Medsphere Systems has closed on $32 million in financing from two large investment firms.
The Carlsbad, Calif.-based company says it will use the funds to “address accelerating demand” for its comprehensive suite of healthcare IT solutions and services, and for strategic acquisitions.
The cash investment comes from Morgan Stanley Expansion Capital and East West Bank.
Medsphere offers a subscription-based payment model for organizations that want to use its suite of solutions, which are in place in inpatient and ambulatory facilities, including behavioral health hospitals, specialty clinics and multi-facility systems.
Medsphere executives say the company has benefited from steadily increasing interest among healthcare organizations in a subscription approach to healthcare IT acquisition. The company’s subscription revenue grew 46 percent in 2017 and is on track to grow significantly again this year.
Medsphere offers the CareVue electronic health record (EHR) for inpatient facilities; ChartLogic solution for clinics; and RCM Cloud system for revenue and back office operations. In addition, its Phoenix Health Systems division delivers vendor-independent healthcare IT consulting, service desk support and infrastructure outsourcing services.
“We are very pleased to have Morgan Stanley Expansion Capital’s support for our growing organization,” says Irv Lichtenwald, Medsphere’s president and CEO. “Both Morgan Stanley Expansion Capital and East West Bank have a clear understanding of our unique and disruptive business model and approach, and recognize the potential of Medsphere to bring real change to healthcare IT.”
Lichtenwald adds that the investment will help support Medsphere’s growth, enabling the company to hire additional team members to support the further development and deployment of their solutions.
Using the cloud and offering subscription services enables Medsphere to facilitate use of CareVue, RCM Cloud and ChartLogic, and dramatically reduce the financial and technological burdens that have historically fallen on healthcare organizations in installing and maintaining IT systems.