Firm boosts health care presence.

Stephen Besbeck runs a small company that competes in the multi-billion-dollar health care industry.

To meet the challenges of a changing business climate and technological advances, his firm, Calabasas-based Creative Computer Applications, has purchased Jacksonville, Fla.,-based StorCOMM.

For almost 30 years, CCA had been developing clinical information and diagnostic information systems used by hospitals, pharmacies, specialty clinics and other health care businesses.

Toward the late '90s, however, hospitals started to put more of their technology budget toward fixing Y2K bug problems, and then focused on making sure that electronic medical records met federal security standards. CCA's sales suffered as a result

Besbeck, president and CEO of CCA, said the company last year engaged an investment banker to help find a good takeover candidate in order to beef up its product offerings and rejuvenate sales.

"We started looking for an acquisition, basically there's a lot of consolidation taking place in the industry, and in order to be successful and compete against much larger companies it's important to have a broader portfolio of excellent products," said Besbeck.

As the company was beginning its search, Besbeck said, hospitals and other health care businesses started moving away from film images and turning x-rays and other images into digital files.

StorCOMM, based in Jacksonville, Fla., had developed state-of-the-art Picture Archiving and Communications Systems and clinical image management systems for medical imaging clients. CCA made an offer on StorCOMM, which was accepted by StorCOMM's shareholders in November, and CCA shareholders authorized the public company to place 1,500,000 common shares and 300,000 warrants for a purchase price of $3 million. The newly-merged company, now called Aspyra, quickly got to work merging its products for a single offering.

In December, Aspyra debuted its new Radiological Information System merged with the PACS product, which offers digital medical images along with other clinical information.

"The initial response to the product has been very good, we're getting new customers out of it as well as interest from our existing customers," Besbeck said.

Sam Elliot, Chief International Officer of Aspyra, who was previously CEO of StorCOMM, said the merger had advantages for both companies.

"By providing a single vendor solution for the global clinical and diagnostic marketplace, we have positioned the company for further expansion and worldwide success," Elliot said. "Our products, now and in the future, will continue to be used in a variety of diverse health care settings."

JONATHAN D. COLBURN

Staff Reporter