Merge Healthcare Incorporated
) recently disclosed that St. Mary's Healthcare System will
deploy its iConnect Access and iConnect Enterprise Archive. This
marks yet another customer win for this imaging and
interoperability solutions provider's iConnect platform.
Merge's iConnect is an interoperability and connectivity
platform. iConnect offers hospitals and imaging centers the
ability to create information exchanges within their environments
and with other entities. It also provides access to imaging and
diagnostic data across disparate sites, geographies, specialties
It is commendable that hospitals continue to implement the
industry leading offerings from Merge despite the general
slowdown in hospital spending. At present, the company has a
client base of over 1,500 hospitals even amid a tough
reimbursement environment for advanced medical imaging.
St. Mary's currently uses other Merge offerings such as Merge
PACS, Merge Cardio and Merge Hemo. The installation of iConnect
Enterprise Archive and iConnect Access should improve physician
workflow and standards of care. Further, it will improve the
workflow of the hospital's IT resources and decrease costs.
The implementation of iConnect Access will also support the
hospital's efforts to meet the Stage 2 criteria of the Meaningful
Use incentive program including image-enabling the Electronic
Health Record (EHR). Implementation of the final Stage 2 ruling
will begin in 2014.
According to InMedica's recent findings, iConnect Enterprise
Archive is the leading vendor-neutral archive (VNA) across the
globe. The innovative interoperability solution stores over 15
billion images worldwide.
While the demand for Merge's solution is highly dependent on the
macroeconomic environment in the U.S., it serves a lucrative
market with multi-million dollar opportunities for its offerings.
Besides, management is banking on ICD10 and Meaningful Use Phase
2 to accelerate growth in the future.
Going forward, we are bullish on Merge as it has immense
potential in the diagnostic imaging market. As a result, the
stock carries a Zacks Rank #2 (Buy). We are also positive about
other Zacks Rank #2 stocks like
) doing well.
Other medical sector stocks such a
Myriad Genetics Inc.
) also warrant a look. These stocks carry a Zacks Rank #1 (Strong
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