Vital Signs - February 2003

Local Firm ModeMD

Helps Physicians Share Accurate Information

by Stephanie Beck

We’ve heard it takes a village to raise a child, but sometimes it takes a village to raise a company as well. In this case, the company is modeMD, and its creators and benefactors are a group of individuals fully committed to making sure this Nevada firm succeeds not only in Nevada, but across the country as well.

ModeMD is a software solution targeted toward revolutionizing the medical industry. It works via your ordinary, everyday personal digital assistant (PDA), but with a twist. Software is downloaded from the modeMD Web site to the PDA to create a new and efficient process for doctors to perform their rounds, send billing information and share information with cross-covering doctors.

The medical industry loses a staggering amount of money each year because claims are filed wrong and filled with errors – industry experts estimate the number at 30 percent of billings. Another 15 percent are lost because the claims are lost. These combined numbers account for $25 billion per year lost for the medical industry as a whole.

Using a PDA application, the modeMD service enables doctors to record patient diagnostics and treatment at point-of-care. Information can then be transmitted accurately, securely and rapidly to their practice office through the modeMD data center. The integrated service also allows a doctor to electronically transfer key patient information to a cross-covering doctor, saving both doctors time and ensuring accuracy of patient care information.

The "village" assistance comes in the form of Nevada Ventures, Sierra Angels and the University of Nevada, Reno. As a group, they financially supported the idea of Reno-based physician, Philip Goodman, MD.

"We’ve all heard the saying, ‘Necessity is the mother of invention,’ and the case of modeMD is no different," said Dr. Goodman, founder of the company and creator of the product. "As a physician, I look for ways to make more time for my patients, to give them better service. By replacing the paper-based [reports] with an electronic system, we can improve the flow of communications to benefit both the patient and the practice as a whole."

Roy Graham, president and CEO of modeMD added, "This is a local Nevada company, incubated by our own university and now funded by the leading venture capital firm and major angel investor group in the state. The investment in modeMD represents the first time all three groups have jointly funded an organization, demonstrating a powerful endorsement of the market opportunity and the strong modeMD management team."

Physicians practicing at Northern Nevada Medical Center, Saint Mary’s and Washoe Medical Centers, all located in northern Nevada, have been beta-testing the modeMD product and have reacted enthusiastically. "Doctors are already seeing the benefits of using modeMD," said Bob Goff, head of the Sierra Angels funding organization. "They’re spending more time with patients, both in the hospital and in the office, as key data is efficiently being captured and transferred to colleagues and practice staff. By analyzing the current marketplace, our investors recognized the patient care and financial benefit of modeMD immediately."

The last 45 days have found modeMD moving from the testing phase into actively securing clients across the country. The business model requires few people for installation purposes, and in fact, interested physicians can download a 21-day free trial scheme to help people adopt the technology before having to purchase it. "We’re delighted with the pace of our progress," said Graham.

Robb Smith, managing partner at Nevada Ventures, said, "ModeMD typifies the entrepreneurial spirit in Nevada. In light of sour economic news throughout the nation, modeMD represents the style of growth company that Nevadans should be investing in, to keep our state competitive. Nevada Ventures investigated the handheld healthcare industry carefully and we believe modeMD will be a serious long-term player."