In a move that could be a harbinger of
future of economic development in the
state, Nevada Ventures, L.P. has aligned
with Sierra Angels and the University of
Nevada, Reno - through the State of
Nevada's Applied Research Initiative - to
fund the creation and establishment of
modeMD.
The Reno-based software firm hopes to
change how medical professionals collect,
share and distribute information.
The modeMD system allows physicians
and clinicians to use a personal digital
assistant to record patient diagnostic and
treatment information at the point-ofcare,
and then transmit that information
accurately, securely and instantly to their
practice office through the modeMD data
center, the company said.
The integrated service also allows a
doctor to electronically transfer key patient
information to a colleague.
The new system appears to be a step up
from the old face sheet system, where a
patient's information is recorded on a sheet
of paper. According to a report by Stanford
School of Medicine researchers, "The inefficiencies
and frustrations associated with the
use of paper-based medical records have
become increasingly clear, especially when
inadequate access to clinical information is
one of the principal barriers that clinicians
encounter when trying to increase their efficiency
in order to meet productivity goals" for
their practices.
Roy Graham, modeMD's president and
chief executive officer, said,"Government and
private research has shown that [physicians
and clinicians] are losing an average of 10 to
20 percent of their revenues due to billing
errors.Our system reduces the administrative
costs associated with paper face sheets."
This, he said, will leave medical professionals
more time to spend with patients or family.
Other errors can include miscoding drugs
or equipment and other mistakes caused by
illegibility inherent in some people's handwriting.
A 1999 study by the Institute of
Medicine found that more people in a given
year die from medical errors than from motor
vehicle accidents, breast cancer or AIDS.
ModeMD was conceived by Phil
Goodman, a UNR professor and director of
its Medical Informatics Division, who then
hired computer programmers to make it possible.
Medical informatics is the scientific
field that deals with biomedical information,
data and knowledge - their storage, retrieval
and optimal use for problem solving and
decision-making.
"We've all heard the saying, 'necessity is
the mother of invention,' and the case of
modeMD is no different," Goodman said.
"As a physician I look for ways to make more
time for my patients, to give them better service.
By replacing the paper system with an
electronic one, we can improve the flow of
communication to benefit both the patient
and the practice as a whole."
Funding for modeMD came through the
State of Nevada's Applied Research Initiative,
which uses a mix of UNR money and private
funds to stimulate research in industries that
diversify and develop its economy. UNR's
investment gives it an equity position in the
company.
"[modeMD] is an excellent example of
how the ARI can be used as a seeding fund,"
Graham said. "The purpose is to stimulate
the commercialization of research on
campus."
The ARI was established to support
research and promote economic development
and diversity in Nevada. It leverages industrial
dollars for research by matching state or
federal funds with private or commercial
ones. ARI requires at least a one-to-one
match between public and private funds, and
restricts funding to research grants and programs
that facilitate academic and industrial
relationships; particularly those that develop
the university system's technology and its
ability to realize its commercial potential.
Venture capital investment, which is often
the primary source of funding for start-ups
and small businesses with huge growth
potential, has remained relatively low in
Nevada. According to a National Venture
Capital Association report in 2000, Nevada
ranked 40th among U.S. states in venture
capital investment, allocating only 0.04 percent
of gross state product to venture capital.
But venture capitalists see that trend turning
around, noting that northern Nevada is
the perfect place for high-tech industry,
which relies heavily on venture capital for
start-up.
"Reno is particularly attractive to businesses
that work [in communications and computing
technology]," said Richard Bostdorff,
president of Tech Alliance. "The communications
and air traffic infrastructure is good
here. We now have first-class office space
available and there is a large pool of workers
in northern California that would like to live
and work here, making skills and experience
readily available."
Bob Goff, president of Nevada
Technology Council and Chairman of the
Advisory Board of UNR College of
Engineering, said that investment in programs
such as modeMD will create highvalue
jobs and economic growth in Nevada.
"Tech jobs on average pay 60 to 200 percent
higher than non-tech jobs," Goff said
"And historically, the tech industry has a
higher probability of high-value liquidity"
when consumed by IPOs or strategic
acquisition.
The first round of public trading - Series
A (preferred stock) - in modeMD concluded
Aug. 15 with future series to be introduced
early next year. The company started in
UNR's Applied Research Facility and has
since moved temporarily to the South
Meadows Parkway business center. It expects
to move into the new Tanamera complex at
the end of the year.
"I'm really impressed with all the things
that have gone on in [Reno]," Graham
added. "It just needs to market itself better."
