Imaging and interoperability solutions provider,
) recently revealed that the Merge Hemo had been selected as
Category Leader in the Best in KLAS Awards for 2012 in the realm
of Software and Services for Cardiology Hemodynamics. This was
the second year that Merge's offering has won this
Merge Hemo has already been operationalized at more than 500
cardiac cath labs. The device collects data and document matters
in a timely manner to facilitate a smooth flow of work.
Merge Hemo gives medical practitioners the power to collect
data using a user friendly interface. The information collected
by Merge Hemo may be comfortably adopted with EHR. Consequently,
cath lab data is properly integrated into the composite
electronic patient chart.
The macro stimulus (HITECH) aims to increase the use of EHR by
medical practitioners, in both ambulatory and hospital-based
settings. As a result, select companies in this space are
witnessing heightened investor interest.
Favorable demographic trends, reinforced by a supportive
regulatory environment, are expected to sustain strong growth in
demand for EHR-related software in the foreseeable future.
According to recent information from Frost & Sullivan and
Merge's own research, the global market for imaging software and
services, healthcare IT interoperability solutions and EHR
solutions for radiology, cardiology, ophthalmology and
orthopedics is worth $7.5 billion annually.
Thus, with greater adoption of EHRs in doctor's offices,
hospitals and imaging centers, the need for data exchange is on
the rise. Against this backdrop, a reliable imaging
interoperability platform becomes significant as a vendor-neutral
We expect that the persistent product development and
continued client wins will benefit Merge in the long run. It is
believed that Merge is well placed to bag a meaningful share of
the multi-billion dollar ARRA-related healthcare information
technology investment opportunity.
However, we remain concerned about the declining Medicare
reimbursement for advanced medical imaging that could negatively
affect hospital and imaging clinic revenues, thereby reducing the
demand for the imaging-related software and services offered by
Furthermore, the presence of many large players like
) has made the healthcare solutions and services market highly
Currently, Merge retains a short-term Zacks #3 Rank (Hold).
Over the long term, we have a Neutral recommendation on the
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