Zacks_Analysts' Blog : Merge's New Product - Analyst Blog

Merge Healthcare Inc. (MRGE) recently announced the release of its radiology information system (RIS), picture archiving communications system (PACS) and Disaster Recovery solutions that leverage a cloud computing platform to manage a breadth of healthcare information.

 

This scalable software as a service (SaaS) enables the deployment of a HIPAA-compliant medical imaging solution without the cost or complexity of managing multiple layers of hardware or software. The cloud-hosted solutions enable rapid implementation of a RIS or PACS, thereby enabling organizations a faster return on investment and minimal disruption to workflow.

The new platform can store digital images and associated patient information in a fully managed server environment, which are accessible at any time from any hosted network computer. Merge has provided a pay-per-study model which allows organizations access to these solutions and to the company’s other software, FusionWeb Clinician Access Portal and Fusion RIS 4.0 with Fusion Billing system.

The new product will help Merge to grow its top-line. 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 recently tapped the Chinese healthcare market when it formed an alliance with Shanghai Kingstar Winning Co., a leading healthcare IT provider in China. 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. Its main competitors include AllScripts-Misys Healthcare Solutions (MDRX) and Amicas, Inc. (AMCS).