CareCloud Closes Medsphere Acquisition, Expanding into the Hospital IT Market

Rhea-AI Summary

CareCloud (Nasdaq: CCLD) has completed the acquisition of Medsphere Systems Corporation, marking a significant expansion into the hospital IT market. The deal brings together Medsphere's extensive client base of over 600 healthcare facilities across 50 states with CareCloud's AI and R&D capabilities.

The acquisition includes Medsphere's comprehensive hospital IT ecosystem featuring CareVue (integrated inpatient EHR), RCM Cloud (revenue cycle management), Wellsoft (Emergency Department Information System), HealthLine (supply chain management), ChartLogic (ambulatory EHR), and managed IT services. This strategic move positions CareCloud to provide affordable, AI-enhanced healthcare technology solutions specifically targeted at small and mid-sized hospitals.

Positive

• Expansion into hospital IT market with access to 600+ clients across 50 states
• Integration of CareCloud's AI capabilities with Medsphere's established healthcare technology stack
• Strategic positioning to serve underserved small and mid-sized hospital market
• Addition of comprehensive hospital IT ecosystem including EHR, RCM, and managed services

Negative

• Potential integration challenges merging different technology platforms
• Financial terms of acquisition not disclosed, indicating possible material impact on balance sheet

Insights

Healthcare Technology Investment Analyst

CareCloud's acquisition of Medsphere transforms it into a comprehensive healthcare IT provider serving underserved hospital markets with integrated AI solutions.

CareCloud's acquisition of Medsphere Systems marks a strategic expansion from its traditional outpatient focus into the inpatient hospital IT market. This transaction is particularly significant as it brings 600+ existing clients across all 50 states and U.S. territories into CareCloud's ecosystem, instantly establishing the company as a cross-continuum healthcare technology provider.

What makes this acquisition truly valuable is the market positioning. CareCloud is specifically targeting small and mid-sized hospitals that are typically underserved by larger, more expensive enterprise vendors. By integrating their AI capabilities with Medsphere's established hospital platforms like CareVue (inpatient EHR) and RCM Cloud, CareCloud can offer these facilities more affordable technology solutions that cover the complete care journey from ambulatory to inpatient settings.

The acquisition includes several valuable assets: CareVue (integrated inpatient EHR), RCM Cloud (revenue cycle management), Wellsoft (KLAS-recognized Emergency Department system), HealthLine (supply chain management), ChartLogic (ambulatory EHR), and Phoenix & Systeem IT Managed Services. This comprehensive suite allows CareCloud to offer end-to-end solutions that previously would have required multiple vendors.

By combining Medsphere's established healthcare IT infrastructure with CareCloud's AI capabilities, the company is positioning itself to help resource-constrained facilities modernize operations and potentially improve their financial performance. This move significantly expands CareCloud's addressable market and creates new cross-selling opportunities across their now-expanded client base.

Transformational acquisition extends CareCloud’s reach into inpatient EHR and RCM, bringing affordable solutions to small and mid-sized hospitals nationwide.

SOMERSET, N.J., Aug. 25, 2025 (GLOBE NEWSWIRE) -- CareCloud, Inc. (Nasdaq: CCLD, CCLDO) (“CareCloud” or the “Company”), a leader in healthcare technology and AI-powered solutions, today announced it has acquired the business assets of Medsphere Systems Corporation (“Medsphere”), a provider of enterprise inpatient and ambulatory solutions with a 23-year legacy and more than 600 current clients across 50 states and U.S. territories.

“Medsphere and CareCloud are creating a next-generation platform—faster, smarter, and well aligned with the evolving needs of health systems,” said Robert Hendricks, a member of the Board of Directors of Medsphere. “Our 600+ clients will benefit from integrating our full-stack offering with CareCloud’s AI and R&D infrastructure, positioning the combined company as an unmatched provider across the full care continuum.”

“This is one of the most transformational transactions in our history,” said Stephen Snyder, Co-Chief Executive Officer of CareCloud. “By combining our advanced AI capabilities with Medsphere’s proven technology, we will deliver an affordable, scalable solution for resource-constrained small and middle-market hospitals across the country. These facilities are often underserved by cost-prohibitive large enterprise vendors, and we see a tremendous opportunity to help them modernize operations, improve patient care, and strengthen their financial position.”

Medsphere’s hospital IT ecosystem includes:

• CareVue – integrated inpatient EHR combining clinical, financial, and patient accounting workflows
  
  
• RCM Cloud – Azure-hosted revenue cycle management platform covering scheduling, registration, billing, claims, A/R, and reporting
  
  
• Wellsoft – KLAS-recognized Emergency Department Information System (“EDIS”) for acute and behavioral health
  
  
• HealthLine – supply chain and inventory management tools for hospital environments
  
  
• ChartLogic – ambulatory EHR and practice management suite for physician practices, with a focus on orthopedics
  
  
• Phoenix & Systeem IT Managed Services – vendor-neutral services including implementation, help desk, interface management, and infrastructure support
  

The transaction closed on August 22, 2025. Additional details are available in CareCloud’s Form 8-K to be filed later today.

About CareCloud

CareCloud brings disciplined innovation to the business of healthcare. Our suite of AI and technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care, while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health, at carecloud.com.

Follow CareCloud on LinkedIn, X and Facebook.

For additional information, please visit our website at carecloud.com. To listen to video presentations by CareCloud’s management team, read recent press releases and view the latest investor presentation, please visit ir.carecloud.com.

Forward-Looking Statements

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Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management's expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, and the expected results from the integration of our acquisitions. Past operational or stock price performance is not an indication of future performance.

These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company’s ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies’ products and services competitive with ours, and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission.

The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

SOURCE: CareCloud

Company Contact: 
Norman Roth 
Interim Chief Financial Officer and Corporate Controller 
CareCloud, Inc.
nroth@carecloud.com 

Investor Contact:
Stephen Snyder 
Co-Chief Executive Officer 
CareCloud, Inc. 
ir@carecloud.com

FAQ

What companies are involved in the CareCloud acquisition deal?

CareCloud (Nasdaq: CCLD) has acquired Medsphere Systems Corporation, a provider of enterprise inpatient and ambulatory solutions with a 23-year legacy and 600+ clients across 50 states.

What products and services did CareCloud acquire from Medsphere?

CareCloud acquired Medsphere's complete hospital IT ecosystem including CareVue (inpatient EHR), RCM Cloud (revenue cycle management), Wellsoft (EDIS), HealthLine (supply chain management), ChartLogic (ambulatory EHR), and managed IT services.

When did CareCloud complete the Medsphere acquisition?

CareCloud completed the acquisition of Medsphere Systems Corporation on August 22, 2025.

How will the Medsphere acquisition benefit CareCloud?

The acquisition allows CareCloud to expand into the hospital IT market, combine AI capabilities with Medsphere's technology, and provide affordable solutions to small and mid-sized hospitals that are typically underserved by large enterprise vendors.

What is the strategic importance of the Medsphere acquisition for CareCloud?

This is described as one of CareCloud's most transformational transactions, enabling the company to deliver AI-enhanced, affordable healthcare technology solutions to small and mid-sized hospitals while expanding their market reach across the full care continuum.