MAYFIELD HEIGHTS, Ohio — The electronic medical records company Noteworthy Medical Systems has moved up financially and moved on geographically.
Noteworthy has internally raised $4 million to smooth the transition after its partial acquisition by CompuGROUP, according to a filing with the Securities and Exchange Commission. Even before CompuGROUP acquired a majority stake in Noteworthy for an undisclosed amount in February, the company was integrating acquired companies MARS Medical Systems Inc.and ChartConnect. The slow economy necessitated another money raise, Noteworthy CEO Susan Hagerty said.
“We are in a phase where we’re basically investing in both product development and market research,” Hagerty said. “When you’re merging two companies into the third one, there are both costs and savings associated with that. And we can’t ignore that we’re in a recession, and the stimulus package hasn’t kicked in yet.”
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Noteworthy was headquartered in suburban Cleveland. But the company in recent months moved its headquarters to Phoenix, Ariz. MARS Medical Systems is in Arizona, and ChartConnect is in Washington state. MARS’ medical practice management software called NetPracticePM suddenly became Noteworthy’s leading product with its largest customer base. So the company decided to move its headquarters closer to the bulk of its customers.
“It’s was best to move operations where our biggest base is,” Hagerty said. The company still maintains a facility in Northeast Ohio.
Hagerty said the recession hasn’t had a disproportionate impact on Noteworthy. The same customers that could use its electronic health records products are also the ones that use its practice management software. And as federal funding for electronic health records is distributed, she thinks Noteworthy will be able to capitalize on physicians who are ready to use electronic record systems.