Physician billing services company Med e-Manager, Melville, N.Y., has acquired technology partner and Durham, N.C.-based electronic handheld charge-capture pioneer MDeverywhere--long rumored to be a takeover target--the companies say.
Med e-Manager President and CEO David Fetterolf will head the combined company, according to MDeverywhere chief Howard Jewell. Jewell, hired nearly a year ago from the remnants of onetime PPM giant PhyCor, says he will step down at the end of July following a transitional period.
Jewell says the deal makes sense for both strategic and financial reasons. Med e-Manager became a reseller of MDeverywhere's point-of-care products and services earlier this year because MDeverywhere helps physicians capture billing data during patient encounters.
"We think that the strategic fit is excellent," Jewell says.
On the financial side, both companies are privately held and have some common investors, according to Jewell.
MDeverywhere founder and former Chairman Lloyd Hey, M.D., a Duke University spine surgeon, says he has been asked to continue with the company but is not yet clear on what his role will be. Hey began writing what became MDeverywhere's software code while a resident at Children's Hospital Boston in 1989.
"He's the major reason the company even exists," says Jewell.