German medical records firm buys majority stake in Noteworthy Medical Systems

MAYFIELD HEIGHTS, Ohio — A German company that is a worldwide leader in electronic health information technology has acquired a majority share of Noteworthy Medical Systems Inc. in Mayfield Heights, Ohio, for an undisclosed amount.

CompuGROUP Holding AG in Koblentz, Germany, has purchased 51.6 percent of Noteworthy’s shares, according to a written statement by CompuGROUP.

The investment announcement comes as Noteworthy completes an acquisition of strategic partner ChartConnect Inc. in Yakima, Wash. ChartConnect develops software and systems that enable the exchange of health information, as well as Web-based electronic health record applications.

Noteworthy will use the “substantial equity investment” from CompuGROUP to “continue to grow its market share and build on its unique ability to provide connectivity to health systems throughout the [United States],” said Lawrence Dolin, Noteworthy’s chairman and chief executive, in his company’s statement.

“It is a natural and very significant, exciting next step in our strategic plan and vision of our future in health care technology,” Dolin said.Noteworthy has been purposely quiet as it built its electronic health information system for small doctors’ practices and community health systems, said spokeswoman Christine Brock.

In August, Noteworthy acquired MARS Medical Systems Inc. in Phoenix, Ariz. MARS develops software and systems that enable doctors to manage their practices. ChartConnect supplies the “hub” or data exchange platform for Noteworthy’s electronic records and services.

Putting together the software and services of all three companies provides an integrated electronic health record system for clients, Brock said.

Noteworthy sales rose 68 percent in 2008. “We’ve enjoyed steady growth in both sales and revenue this past year, and we’re anticipating an even more robust 2009,” said Paul Ruflin, Noteworthy’s president and chief operating officer, in his company’s statement.

The company employs about 160 people in four U.S. locations, Brock said. It serves more than 1,300 doctors’ practices, 6,000 health care providers and 13,000 users across 43 states.

Having a complete electronic health record system could propel Noteworthy’s growth. U.S. economic stimulus legislation also could help companies like Noteworthy grow.

“Given the Obama administration’s priority on funding health care IT initiatives, Noteworthy is well-positioned with key solutions to serve hospitals, health systems and individual practices in their pursuit of quality patient care through connectivity, collaboration and data exchange,” Ruflin said.

CompuGROUP enters the U.S. market through its investment in Noteworthy, said Susan Hagerty, senior vice president of CompuGROUP, in Noteworthy’s statement. Noteworthy is expected to be an independent, U.S.-based operating company of CompuGROUP and to keep its present managers, she said.

CompuGROUP operates in 14 European countries as well as Malaysia, Saudi Arabia and South Africa and currently employs around 2,600 people. The German company had 2008 revenues of 225 million euros, which is equivalent to about $282.4 million. Its operating earnings last year were 50 million euros, or $62.8 million.

Cleveland investment bank Bruml Capital Corp. represented Noteworthy in its transaction with CompuGROUP.

[Cover image courtesy of Flickr user southerntabitha]