Merge Healthcare Incorporated (MRGE) has expanded its agreement with Rosslyn Medical, a large medical imaging solution provider serving the Russian market. The agreement calls for expanding the portfolio of Merge OEM products available to Rosslyn.
The new agreement widens Merge’s Russian footprint and increases its international revenues. The Russian market presents a tremendous opportunity having been valued at $2 billion in 2007 (Source: Frost and Sullivan estimates). The country has few national initiatives such as the ‘National Health Program’ and project ‘Health’ that empower hospitals, specialized health centers and clinics with advanced medical technology. Merge’s products meet the strong quality standards and support these initiatives.
Merge is a healthcare software and services company focused on integrating radiology workflow to improve productivity, profitability and patient care by fusing business and clinical workflow, and intelligently managing and distributing diagnostic images and information throughout the healthcare enterprise.
Merge was paralyzed by several issues in the past like a dwindling cash balance, management turnover, accounting miscues, and litigations. The real turnaround started from the second quarter of 2008 when the company received a much needed cash infusion of $20 million from Merrick RIS, LLC in May 2008.
Merge Healthcare recently tapped the Chinese healthcare market by forming an alliance with the leading healthcare IT provider there. The alliance is likely to widen Merge’s customer base and increase its top line. Congress’ approval of more than $20 billion in spending on health information technology is also likely to benefit the company. However, a majority of the spending in the U.S. will be felt between 2011 and 2015.
Merge’s main competitors include AllScripts-Misys Healthcare Solutions (MDRX) and Amicas, Inc. (AMCS).
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