AMICAS Expands Medical Image E-Business With New Backers, Customers.Business/Technology Editors and Health/Medical Writers NEWTON, Mass.--(BW HealthWire)--May 1, 2000 With new financing, new customers and a new CFO See Chief Financial Officer. , a different picture of radiology's future is rapidly taking shape at AMICAS, Inc., a company intent on making Internet-based medical image management as easy as a search on Yahoo. The company presently has medical image services installed at 67 health institutions nationwide and manages more than 2 million radiology studies per year. Financing of $4.5 million The latest round of financing at AMICAS has produced $4.5 million from a group of investors led by Radius Ventures, based in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . Other investment partners include Portage Ventures and Garrett Capital/First Chicago. AMICAS executives are optimistic about future funding. "We've had a very successful first round of financing," says Barry Gutwillig, vice president of business development," and we expect follow-up funding in excess of $25 million within the next 6 to 9 months, to be used for operational expansion and future acquisitions." Supporting his firm's quick decision to back the five-year-old company, Jordan Davis, managing partner of Radius Ventures, says, "AMICAS was first with medical image management on the Net and has overwhelming market potential. The traditional method of image management is film-based, which is enormously expensive and inefficient. We live in a digital world now, and digital images are the obvious component needed to make electronic medical records complete. AMICAS recognized long ago that Web-based image management is the best way to move vital information from physician to patient to payer." Hospitals, Healthcare Systems Sign On Medical imaging facilities and hospitals obviously agree. AMICAS has recently signed on a number of new customers, among them New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Presbyterian Medical Center (comprising Columbia and Cornell hospitals); and, through Sunquest Information Systems at multiple sites, the University of Arizona (body, education) University of Arizona - The University was founded in 1885 as a Land Grant institution with a three-fold mission of teaching, research and public service. , Sutter Health Systems in northern California, St. Mary's Hospital in Georgia, and Texas Health Resources. Sunquest incorporates AMICAS(TM) image software in their radiology and healthcare information system. In addition, MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. Centers of New England has implemented the new AMICAS(TM) "per-study" subscription model to operate in Rhode Island Rhode Island, island, United States Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. . "This is a pricing structure that makes our service more affordable for imaging centers and many hospitals," says AMICAS CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Hamid Tabatabaie. "Rather than pay a flat licensing fee, as many of our customers have in the past, MRI Centers of New England will pay from $2 to $4 per study (i.e., set of patient's images), depending on the total number of studies the facility does that year. By contrast, the same number of images on film would cost from $20 to $40." AMICAS Adds New CFO To Management The latest addition to AMICAS management is Chief Financial Officer John Reichenbach. Prior to joining AMICAS, Mr. Reichenbach was the CFO of E-Travel, an Internet startup recently acquired by Oracle Corporation. In addition to his day-to-day financial and operations responsibilities, Mr. Reichenbach will supervise negotiations of equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. from venture capital firms Name Location Founding date Managing Partners/Directors Specialty Capital managed 5AM Ventures Menlo Park, CA; Waltham, MA 2002 John Diekman, PhD (managing partner), Scott Rocklage, PhD (managing partner), Andrew Schwab (managing partner) life sciences $200M [1] . "AMICAS is a company I found very attractive because its product is complete -- and on the cusp of exponential growth Extremely fast growth. On a chart, the line curves up rather than being straight. Contrast with linear. ," Mr. Reichenbach replied when asked why he joined AMICAS at this time. "And our latest venture partners apparently think the same way. This was the fastest round of financing I think I've ever experienced." AMICAS, Inc., a privately-owned company, is a provider of Internet-based medical image management solutions. For further information about the AMICAS(TM) suite of software and services, call 1-800-490-8465 or visit www.AMICAS.com. Editor note: Radiology images transmitted by AMICAS(TM) are available on disk upon request. |
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