Posted on 08/18/2005 1:40:03 PM PDT by nickcarraway
NEW ORLEANS — A New Orleans-based patient advocacy firm is getting a $1 million cash infusion from two state venture funds and a group of private investors, officials announced today.
Patient Care closed the deal this week and is the first company to receive money from the newly created Louisiana Technology Fund, a $2.3 million fund designed for early stage tech companies. The fund invested $300,000. Another state technology fund, Louisiana Fund 1 LP, contributed $200,000, while the remaining $500,000 came from angel investors, said Jane Cooper, Patient Care chief executive officer.
The company, which employs 20, plans to use the money to add staff and buy new equipment. Patient Care is a national health care advocacy company that helps consumers navigate health care and insurance systems. It works with individuals and companies across the country to investigate, research and resolve health insurance problems and claims for around 75,000 members nationwide.
The three-year-old company plans to double its staff within the year, Cooper said.
“We’re growing very quickly, so we want to make sure we stay ahead of the curve,” she said.
Patient Care developed a sophisticated Web-based software program that allows employees to track claims and complaints from start to finish. The company must keep track of hundreds of rules and regulations that affect the industry, especially those dealing with privacy standards of the federal Health Insurance Portability and Accountability Act.
The fact that the company’s service relies so heavily on a software application made it qualify for investment of the Louisiana Technology Fund, said fund board member Terry Jones.
“What drives that company is the technology that it’s based on,” Jones said.
The Louisiana Technology Fund was established last year by the state’s four research parks and Louisiana’s Certified Capital Companies (CAPCOs). The CAPCOs that participate include Whitecap Louisiana Growth Fund, Advantage Capital Partners and Enhanced Louisiana Capital.
Louisiana Fund 1 is a $17.8 million fund devoted to early stage firms in the life sciences and technology sectors.
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