CollaborateMD (formerly ClaimGear), a leading provider of Internet-based medical billing and practice management solutions for physician offices and medical billing services, announced today that it now provides medical billing software to 2,500 providers who collectively process more than $1 billion in claims annually.
CollaborateMD has grown by double digits every year since they started generating revenue in 2000 and processes almost 100 million dollars in claims through their system monthly. They’ve been profitable six of the last eight quarters, have no debt, have providers in 48 states, and their database processes over 20 million transactions daily. To anyone unfamiliar with CollaborateMD, they may sound like a company with a large number of employees and overhead, but they’re just the contrary. CollaborateMD only has fifteen employees and operates in a 3,000 sq. ft. office in downtown Orlando, Florida.
The Success Story Behind CollaborateMD
CollaborateMD isn’t just another Internet-based medical billing software company. They believe they have one of the most affordable and easiest to use systems available today and they have the numbers to back up that claim. CollaborateMD has a 700:1 ratio of users to each person in customer support and a 166:1 ratio of providers to employees. This ratio is much better than some of their main Internet-based competitors that have provider to employee ratios in the 18:1 to 66:1 range.
The high user to employee ratio demonstrates how easy the CollaborateMD software is to use and maintain. “Efficiency, internally and for our customers, has been my goal since day one and remains as our mission today and into the future,” stated Douglas Kegler, president of CollaborateMD. CollaborateMD has been called the “Quicken®” of the healthcare sector because they provide a comprehensive, affordable and easy to use medical billing system that appeals to the largely underserved one to twenty provider medical offices. But, just because their software is easy to use and learn doesn’t mean it lacks functionality. CollaborateMD’s software is very powerful and has gone head to head with some of the major players in healthcare software and won.
CollaborateMD replaced the medical billing software used by Corinthian Colleges, Inc (Nasdaq: COCO) for their Medical Billing and Coding diploma and degree programs. The rollout began in January 2007 and after all campuses are converted approximately 5,000 students a year will be trained on the CollaborateMD software.
CollaborateMD was selected to be utilized for the back-end practice management software behind the RediClinic (www.rediclinic.com) rollout across the nation in WalMart and other supermarkets and pharmacies. RediClinic, one of the largest retail-based clinic chains in the U.S., integrated their EMR into the CollaborateMD system which allows all charge capture and eligibility checks to flow seamlessly between the two systems. A partner of CollaborateMD handles managing the insurance claims once received into the CollaborateMD system.
CollaborateMD’s success has been in part through their partnership with RelayHealth, a division of McKesson Corporation (NYSE:MCK), as its exclusive clearinghouse for insurance claims, patient statements and eligibility verification, and electronic remittance. “RelayHealth has played an important role in our growth and success and I am proud to have them as a partner,” commented Mr. Kegler.
Recurring Revenue Model
As with most Software-As-A-Service companies CollaborateMD enjoys a steady stream of revenue from recurring monthly fees. CollaborateMD charges medical providers a flat monthly fee and charges medical billing services on a per transaction fee schedule. Although it took the company from 2000 to 2005 to build up enough recurring revenue to become profitable, they are enjoying increasing profits with every provider added to the system. Most of their profits are reinvested back into the company to fuel their double-digit revenue growth.
Another unique feature of CollaborateMD is in regards to their term contracts with customers – there are none. “I know contracts are common in healthcare, but when I started the company I wanted a product that stood on its own value and didn’t need contracts to keep customers,” commented Mr. Kegler. Customers can leave CollaborateMD at anytime, but they rarely do and it shows through their rapid growth.
The Mission for CollaborateMD
The CollaborateMD mission is simple – provide a comprehensive, affordable and easy to learn product that allows the provider to get paid and paid fast. CollaborateMD believes they have a solution that fits a large percentage of medical offices that do not want or need a large, expensive, and complicated system. “Medical offices just want an easy piece of software that allows them to get paid, that’s the bottom line,” stated Mr. Kegler. CollaborateMD feels that a lot of software companies dismiss the effect of staff turnover and the learning curve for new employees. Medical offices and medical billing services want a software package that a new employee can learn fast and start being productive immediately. CollaborateMD provides that product at an affordable price.
About CollaborateMD
Headquartered in Orlando, FL, CollaborateMD provides the health care industry with an Internet-based Medical Billing and Practice Management Software program that has the speed of a local PC application and the "use anywhere" flexibility of a Web browser application. CollaborateMD is a 100% Java application utilizing Sun Microsystems (Nasdaq: SUNW) Java Platform. CollaborateMD offers physician offices and medical billing services the opportunity to become more efficient and flexible. For more information, visit: http://www.collaboratemd.com or call 888-348-8457.
Quicken is a registered trademark of Intuit, Inc. All other trademarks and registered trademarks are owned by their respective companies.
Contacts:
David Swanson, 407-902-2960
