The merger of hospital vendors Medsphere Systems and Stockell Healthcare Systems will create a new cloud-based hospital information system for facilities to consider when assessing vendors.

Medsphere offers a subscription-based electronic health record, called Open Vista Clinicals, and Stockell brings its InsightCS revenue cycle product with a suite of ancillary tools covering patient engagement, registration, scheduling, collections, business analytics and reporting.

Terms of the merger, expected to close in late October, were not disclosed. Stockell will become a division of Medsphere, continue operating under its name and remains able to pursue standalone revenue cycle management business, according to a Medsphere spokesperson.

Also See: How CIOs can better manage change in a merger

“We’ve collaborated several times on previous implementations so this really seemed like a natural and beneficial evolution of the relationship,” Irv Lichtenwald, president and CEO at Medsphere, said in a statement.

Irv Lichtenwald

“Every healthcare IT company is looking to fill gaps in functionality and with this union both Stockell and Medsphere become whole,” CEO Rick Stockell adds.

Medsphere in recent months has started to move to the cloud with its first implementation at Southern Inyo Hospital in Lone Pine, Calif. Stockell already hosts its applications on the cloud.

“I like the model,” says John Osberg, a mergers and acquisitions specialist at Informed Partners, a consultancy. “The next generation hospital information system will be cloud-based with the ability to correctly manage the revenue cycle side and that seems to be the focus.”

However, Osberg is concerned about the ability of the companies to scale cloud operations. While the executives are seasoned veterans, time will tell if they are steeped adequately in current and future cloud-base designs.

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