Continuation of 40 percent-plus growth rate, new clients and investors, expansion of product offerings heighten expectations for 2018
Carlsbad, Calif.—Medsphere Systems Corporation, the leading provider of affordable and interoperable healthcare information technology (IT) solutions and services, is once again entering a new year sustained by double-digit growth and significant expansions of the company’s financial support, client base and product functionality. Entering the new year, Medsphere is reporting a 45 percent increase in subscription revenue for 2017 on the heels of a 48 percent revenue growth rate during 2016.
To meet the requirements of increased demand and product expansion, Medsphere secured $30 million in credit with Hercules Capital last June and in December welcomed NextEquity Partners as a new investor. NextEquity is a seasoned investment group with a leadership team that includes former Apple executives. Drawing on extensive technology, operations and growth equity experience acquired through managing or investing in brand-name companies—Apple, AirBnB, Facebook, Sonos, Lyft, Yelp—NextEquity’s team focuses on identifying companies looking to both succeed financially and affect beneficial change.
“Even decades ago, it was clear to pretty much anyone who looked that healthcare was ready for a technology revolution,” said NextEquity Managing Director Fred Anderson. “We are currently in the throes of that revolution, but the part where technology becomes more affordable and enhances healthcare without threatening budgets hasn’t happened. We believe Medsphere has more effectively combined full functionality with affordability than other healthcare IT companies, which is why we’re on the team.”
In 2017, Medsphere acquired Stockell Healthcare Systems, adding full revenue cycle, billing and patient accounting applications to the robust CareVue electronic health record (EHR) platform. Last year, that platform also became available remotely as CareVue Cloud, giving hospitals the option of eliminating onsite hardware and data centers.
“The continuation of our 2016 growth rate through 2017 says a lot about the success of Medsphere’s business model and the appeal of our solutions and services to clinics and hospitals in both acute and behavioral health settings,” said President and CEO Irv Lichtenwald. “While the expansion of IT to almost all healthcare sectors is exciting and overdue, the industry is also due for a financial reckoning given the tremendous burden most EHR systems place on organizational finances. Our objective remains to improve care for all patients without asking hospitals and clinics to choose between investments. With CareVue, they don’t have to.”
A flurry of recognition late last year is also creating additional momentum heading into 2018. In October, Phoenix Health Systems, Medsphere’s healthcare IT consulting and outsourcing division, was recognized by Black Book Research as the number one firm for comprehensive hospital IT outsourcing. And in November, Medsphere ensured full Meaningful Use reimbursement for clients by achieving 2015 Edition ONC Certification of CareVue.