MDeverywhere, one of the first firms to attempt to bring advanced handheld and wireless technology to physicians, has been sold.

The company, founded by Duke physician and professor Dr. Lloyd Hey, is now part of Med e-Manager, a medical billing and accounts receivable firm based in Melville, NY.

Terms were not disclosed.

“I think this is a good thing,” said Howard Jewell, MDeverywhere’s chief executive officer for the past 14 months. Even though Jewell said he will be “transitioning away from the company” as will most MDeverywhere execs, he pointed out that he had been looking to make a “strategic play” for many months.

“I really feel good about this transition,” he told Local Tech Wire Wednesday morning. “I worked hard to position the company for the future. This puts together two companies in different spaces but had overlapping services.”

While the current state of the economy was “to some degree” part of the reason for the sale, the bigger factor, according to Jewell, was the healthcare market.

“Unfortunately, there was not what I would call a huge movement toward these solutions despite the huge economic benefits,” he explained. MDeverywhere customers could document returns on investment often of 300 percent, Jewell said.

Med e-Manager had been a client of MDeverywhere, which provides point-of-care technology via handhelds and wireless technology. The company recently embraced Wi-Fi wireless technology. A key point of the service was to help physicians capture electronically specific services rendered to patients in order to ensure more accurate billing.

As a result of the acquisition, the new company will be known as Med e-Manager. Some jobs will be lost, and management changes are taking place.

What role Hey, who has continued to serve on MDeverywhere’s board, will play is unclear. Said Jewell: “It’s not determined yet what any role will be.” But he praised Hey’s contribution and vision in the firm’s launch and growth over the years.

Smaller RTP operation

MDeverywhere currently employs 23 people, but Jewell said that there will be “significantly fewer” people working in RTP. The company’s development group, customer support and professional services organizations will remain and be led by Ron Harman, who is MDeverywhere’s chief technology officer and vice president of professional services, Jewell said.

David Fetterolf, president and chief executive officer of Med e-Manager, will run the combined company.

Jewell joined MDeverywhere last Spring when Alan Rubin resigned. Rubin had been replaced on an interim basis by Hey.
MDeverywhere, founded in 1995, raised more than $30 million in venture capital over the years. It reported $10 million in revenue in 2001.

“We had been working with Med e-Manager as a client and found that the companies’ missions align well,” Jewell said in a statement. “Based on the initial response to our combined marketing initiatives, we believe the merger will facilitate greater penetration of the market, and clients will benefit from a broader selection of customizable solutions to help improve their revenue cycle results.”

MDeverywhere: www.mdeverywhere.com

Med e-Manager: www.medemanager.com