Medsphere Systems, a US-based interoperable healthcare information technology solutions and services provider to hospitals, has closed $32m in financing from Morgan Stanley Expansion Capital and East West Bank.
It will use the funds to cater to the growing demand for its suite of healthcare IT solutions and services, besides investing on strategic acquisitions.
Through a subscription-based payment model, the company’s suite of solutions can be availed by inpatient and ambulatory facilities, including behavioural health hospitals, specialty clinics and multi-facility systems.
Morgan Stanley Expansion Capital managaing director and Morgan Stanley Expansion Credit head Bill Reiland said: “Medsphere’s breadth of offering combined with their depth of functionality and overall affordability differentiates it from the rest of the industry.
“The company is a true innovator, giving hospitals and clinics the workflow and technology they need at prices they can pay. We’re excited to invest in Medsphere as they continue to share their unique offering with healthcare organizations.”
Medsphere Systems president and CEO Irv Lichtenwald said: “We are very pleased to have Morgan Stanley Expansion Capital’s support for our growing organization.
“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.”
In the last two years, the firm has witnessed an increasing interest for a subscription approach to healthcare IT purchases among healthcare facilities. Its subscription revenue increased by 46% last year and expects a similar growth this year.
The company’s CareVue electronic health record (EHR) for inpatient facilities, ChartLogic solution for clinics, and RCM Cloud system for revenue and back office, provide electronic support for clinicians and staff.
Its Phoenix Health Systems division also offers vendor-independent healthcare IT consulting, service desk support and infrastructure outsourcing services.
With the availability of CareVue, RCM Cloud and ChartLogic solutions in the cloud and through a subscription model, Medsphere claims to have reduced the financial and technological burdens of hospitals and other healthcare organisations.