A niche Web platform from laboratory informatics firm Path Central that helps community oncologists share information and provide services to work more efficiently has raised $1 million in debt.
Industry: Healthcare IT
Location: Irvine, California
Money raised: $1 million in debt. Since 2010 it has raised more than $13 million.
Solution/Product: A Web-based pathology laboratory information system that includes components of a pathologist’s practice such as accessioning — an ordered test or group of tests on a specimen, transcription, consultations, billing. The system also allows users to exchange information with electronic medical records and doctors’ offices, like a healthcare information exchange. It also has a specimen identification and tracking system, according to the company’s website. The system is intended to reduce costs through improvements in operating efficiencies and enhance patient safety using a state-of-the-art specimen identification and tracking system.
Management team: Matthew Watson, the CEO and co-founder, previously served as CEO of Pathology Business Services, a pathology billing company in Torrance, California. He also worked as group administrator for Affiliated Pathologists Medical Group. Dan Angress, the chief operating officer, was COO for Westcliff Medical Laboratories (now LabCorp), in Santa Ana, California. Joseph Nollar, the chief technology officer was president of eTeleNext Inc., a provider of Web-based laboratory information systems acquired by Path Central.
Market opportunity: The global laboratory informatics industry is projected to be valued at $1.5 billion by 2015, although pathology is just one piece of that. The clinical laboratory and medical billing sector has experienced a lot o consolidation underlined by McKesson’s acquisition of MED3000 earlier this week, giving it the largest market share of contract billing/collections for anatomic pathology laboratories and pathology groups, according to clinical lab and industry website Dark Daily. Path Central’s approach to create an interactive industry network by providing several different types of services to community pathologists in addition to billing adds value to their system and helps to set them apart from other businesses.