<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0305</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2012-05-10</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000944765</issuerCik>
        <issuerName>MERGE HEALTHCARE INC</issuerName>
        <issuerTradingSymbol>MRGE</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001437683</rptOwnerCik>
            <rptOwnerName>Merrick RIS, LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>350 NORTH ORLEANS STREET,</rptOwnerStreet1>
            <rptOwnerStreet2>10TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>CHICAGO</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60654</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001163431</rptOwnerCik>
            <rptOwnerName>FERRO MICHAEL W JR</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>350 NORTH ORLEANS STREET,</rptOwnerStreet1>
            <rptOwnerStreet2>10TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>CHICAGO</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60654</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2012-05-10</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>211300</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>2.83</value>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>31734937</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>500000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnote</value>
                    <footnoteId id="F2"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">The price reported in Column 4 is a weighted average price. The shares were purchased in multiple transactions at prices between $2.74 and $2.93.  The reporting persons undertake to provide to Merge Healthcare Incorporated (&quot;Merge&quot;), any stockholder of Merge, or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares purchased at each separate price set forth in this footnote.</footnote>
        <footnote id="F2">These shares were issued to Merrick Healthcare Solutions, LLC, an Indiana limited liability company (&quot;Merrick Healthcare&quot;), as consideration for the purchase price of the acquisition by Merge of the assets of, and relating to, the Olivia Greets business line previously owned by Merrick Healthcare.  These shares were subsequently transferred from Merrick Healthcare to Merrick Ventures, LLC, a private investment firm (&quot;Merrick Ventures&quot;).  Both Merrick Healthcare and Merrick RIS, LLC, a Delaware limited liability company (&quot;Merrick RIS&quot;), are majority-owned subsidiaries of Merrick Ventures.  Merrick  RIS is not a beneficial owner of these shares.</footnote>
    </footnotes>

    <remarks>The reporting persons are Merrick RIS, a ten percent owner, and Michael W. Ferro, Jr., the Chairman of the Board of Directors of Merge and a ten percent owner (&quot;Mr. Ferro&quot;).  Mr. Ferro is also the Chairman and Chief Executive Officer of Merrick RIS and Merrick Ventures. Mr. Ferro and trusts for the benefit of Mr. Ferro's family members beneficially own a majority of the equity interests in Merrick RIS and Merrick Ventures.  As a result of the foregoing, Mr. Ferro indirectly controls all shares of Merge Common Stock owned by Merrick RIS and Merrick Ventures.  Mr. Ferro disclaims beneficial ownership of these shares except to the extent of his pecuniary interest therein. The address of the reporting persons is 350 North Orleans Street, 10th Floor, Chicago, Illinois 60654.</remarks>

    <ownerSignature>
        <signatureName>/s/ Mark Harris, as Attorney-in-Fact</signatureName>
        <signatureDate>2012-05-10</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Mark Harris, as Attorney-in-Fact</signatureName>
        <signatureDate>2012-05-10</signatureDate>
    </ownerSignature>
</ownershipDocument>
