Merge Healthcare (MRGE) released a new surgery management solution, Frontiers 4.2.2. The new solution captures and charts clinical data throughout the entire perioperative-care process, which include pre-surgical screening, operating room and recovery. This in turn enhances the hospital workflow.
The new solution, Frontiers 4.2.2, automates the clinical and business documents that are required in the operating room. This enables the clinicians and physicians to focus more on patient care. The new solution provides real-time data while ensuring that the documents comply all quality, regulatory and the best practice standards.
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 thus will increase its top line.
The U.S. Congress’ approval of more than $20 billion in spending on health-information technology is also likely to benefit the company. However, majority of the spending in the U.S. will be felt between 2011 and 2015.
Merge has recently offered to purchase all outstanding shares of North Carolina-based etrials Worldwide Inc. (ETWC) that provides clinical trials software and services. The offer is a mix of cash and stock valued at over $18.3 million.
The shareholders of etrials Worldwide will receive $0.80 plus 0.3448 shares of Merge for each share of etrials they hold. The exchange offer will expire on July 14. The combined Merge-etrials entity will be able to provide contract research organizations and clinical trial sponsors configurable systems with both critical imaging technologies and electronic clinical capabilities.
Merge’s main competitors include AllScripts-Misys Healthcare Solutions (MDRX) and Amicas, Inc. (AMCS). Merge reported strong first quarter of fiscal 2009 results with growth seen in its top and bottom lines. The company reported three consecutive quarters of net income.
The company’s restructuring activities of 2008 paid dividends by increasing its margins. Merge also started generating cash from operations. Based on the company’s performance in the quarter, we have upgraded Merge to a Hold.
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