Modernizing Medicine has expanded its reach with a deal to acquire gMed, a provider of electronic health records to thousands of gastroenterologists.
Boca Raton-based Modernizing Medicine is one of South Florida’s fastest growing companies as it has signed up more than 6,000 providers for its Electronic Medical Assistant. Now the company’s reach will be expanded to more than 10,000 clients. The cloud-based iPad program works for dermatology, ophthalmology, orthopedics, otolaryngology, gastroenterology, urology and plastic surgery specialties. However, its largest market is dermatology.
Its purchase of Weston-based gMed should close in the third quarter. The gMed system works on laptops and PCs and must be installed. Modernizing Medicine CEO and co-founder Daniel Cane will continue to offer and support gMed’s products and services and is in no hurry to change them.
Over time we will take the freshness of our technology to their install base,” Cane said.
With 16 percent of the gastroenterology market, gMed is the largest EHR provider for that specialty, which it has focused on for nearly 18 years, Cane said. He said the most important part of the acquisition is the 120 gMed employees that can apply their experience in that specialty to Modernizing Medicine.
Dr. Joe Rubinsztain, the CEO and founder of gMed, will join Modernizing Medicine’s senior management team and take the title president of gMed.
“I have watched the rapid growth of Modernizing Medicine and admire the reputation the company has gained in the market with its cloud, mobile and data-driven third generation EMR system,” Rubinsztain said. “I expect this transaction to create greater benefits for end users and the most differentiating and comprehensive gastroenterology-specific products.”
Modernizing Medicine Chief Medical Officer and co-founder Dr. Michael Sherling said the acquisition would move the company into the Top 15 largest providers of federally qualified electronic health record systems. These programs must meet federal “meaningful use” standards for participating physicians to earn incentives from Medicare.
Cane said the companies would combine to have 425 employees and pro forma revenue of over $65 million. He plans to maintain gMed’s offices in Weston and Charlotte, North Carolina, since Modernizing Medicine has no more room to grow in its Boca Raton headquarters.
This is the company’s second major acquisition following its December purchaseof Aesyntix Health in California. In March, IBM invested in Modernizing Medicine as part of an advanced cognitive computer program.
“With this acquisition we will be in a very sustainable place,” Cane said. “We will have enough heft in revenue to be formidable…Many options are available to us in the future.”
