Curious, we connected with CEO Christopher Hanna to learn more about what’s happening out there in Eden Prairie for this Minnesota healthtech venture that’s growing under the radar:
When, why and how did OneMedNet begin in the first place?
OneMedNet actually began in Hawaii around 2006 because of the rather unique geography there. Say you were involved in an accident on one of the islands and needed medical care on the main island, or any different facility for that matter.
At that time you had to be put on a helicopter/transport plane and lifted to the hospital in Honolulu, which is still mostly the case.
But along with you, if you had been x-rayed or CT scanned, that CD/media would be shipped with those images as well. What physicians realized was that they could better capture and transport the images directly from the site of trauma to the site of care to have them triaged, and preparations made prior to the airlift arrival. That was the basis of the value proposition then as is now.
It didn’t matter if it was a stroke, accident, heart attack, etc. — this approach was proven to have a drastic impact on healthcare in Hawaii for the next few years. By 2010, this electronic transport had reached a critical mass, deployed between 30 of 33 hospitals in Hawaii via transfer network, and many more across the US.
How did you get involved with OneMedNet?
I was in Vancouver on a healthcare project in the 80’s and maintained my relationship with the original founders up there. Years later they reached out on behalf of OneMedNet and I liked what I saw.
The prior CEO lived in Seattle and in 2013/2014 I took over and moved the headquarters to Minnesota since that’s where I am from and where many of our advisors now are.
It’s no coincidence that we’re now next to Optum in Eden Prairie, a confluence of a key factors that now make this a Minnesota company.
How has the company changed since you stepped in late 2013?
The technology as matured and we have doubled in size. I have created a number of new distribution partnerships with key organizations like McKesson and General Electric.
How many people are in the company?
Management is here, we have a satellite in Vancouver and our contractors are spread out from east to west. We’ve a very virtual/distributed team that does a lot with a little.
How does your software impact in healthcare?
Our flagship product BEAM is an enabling technology, a transport layer to get data from A to B securely and quickly for doctors to use to make their jobs easier. That’s the value we provide to the healthcare marketplace. Many hospitals are still using physical media, like CDs, to store and move data, which adds time and cost. With BEAM, hospitals can connect to the hub and spoke network and participate in electronic transmission for speed and security.
How is BEAM sold/distributed?
Software as a service in a virtual machine that runs locally, we can also host as needed. There’s an installation/setup fee and and monthly license. Our distribution/resellers
How many installation networks do you currently claim?
We have approximately 8 hospital networks that we are directly involved with, while our resellers have more.
How much has OneMedNet fundraised over the years and what’s the situation there?
We’ve taken more of a bootstrap approach than a straight venture one, as some of our competitors are funded well into the tens of millions of dollars. We’ve only taken outside investment on a case by case basis, to the tune of ~2m, over the past decade, instead we’ve grown much more organically on the reinvestment of revenue earned from many paying customers.
What has been the application of that money?
To stretch the team out.
Is the company profitable?
That’s something that we see happening this year for the first time.
What do you see as the big picture market opportunity for OneMedNet?
This is a subsegment of a subsegment in terms the market and we see estimates ranging between $400m-$700m of annual spend in this category. A majority of that still goes towards CDs and even film in some cases, so there is plenty of room for us to work our way into that spend on an annual basis. I would say in the past two years, we’ve seen a steady change from legacy systems to modern transport mechanisms like BEAM.
As healthcare industry spending continues to change towards outcomes, in terms of efficiencies and reimbursement, you’ll see those economic levers tip in our favor.
What’s happening next for OneMedNet?
We’ve recently expanded from radiology and cardiology into the chronic obstructive pulmonary disease category helping pulmonologists and surgeons be better. We see expansion of our technology into a number of other categories as well. Artificial Intelligence and predictive analytics are also an exciting area we’re looking into as are many others concerned with the future of healthcare.