Health IT firm Updox gets Ohio tax credit for expansion project

Health information technology company Updox has received a job-creation tax credit from the state of Ohio valued at $258,000 over six years.

The tax credit is aimed at helping the company expand its Dublin, Ohio work force. Updox would hire 45 workers, which would generate $2.8 million in payroll related to the expansion project. The company would make an investment of $675,000 in machinery and equipment.

If the company accepts the tax credit, it would agree to maintain operations in Dublin for nine years, according to the Ohio Department of Development (ODOD).

Updox currently has six employees, CEO Mark Shary said. The company is looking to hire another six or seven by the end of the year, with most of the positions in computer programming or technical support.

Updox, which began operations about a year ago, sells document management software to physicians and medical practices. The software is a web-based patient portal, e-mail and secure messaging system that features patient record importing and exporting, and document editing.

“We have a very practical solution for independent physician offices where getting documents and information in and out of the offices is challenging,” Shary said.

Updox focuses on private physician offices with between one and five doctors. Between 4,000 and 5,000 doctors are using the company’s software, Shary said.

Prices range from $35 to $60 per month per doctor, with no upfront fee. Most users can proficiently navigate and use the system within less than 30 minutes, Shary said.

The company is aiming to become the premier “exchange platform” for sharing medical information between different types of electronic health records (EHR) systems, according to ODOD. One of the main drawbacks associated with today’s EHR systems is that many lack the ability to exchange information. This lack of interoperability often inhibits much of the value and efficiency that could come through physicians exchanging patient records electronically.

The federal government is making a big push into EHRs, offering doctors up to $44,000 in incentives to offset the purchase of the sometimes-costly systems.

Updox’s tax credit will begin in January 2011 and will end in December 2016.