Vertical Health Solutions, which does business as OnPoint Medical Diagnostics, is seeking $5 million in exchange for equity and options, according to a regulatory filing.
So far, $525,000 has been raised. William Cavanaugh is the president and CEO of the company, while Rochester real estate mogul Gus Chafoulias is one of its directors.
OnPoint Medical Diagnostics, a Minnesota health IT firm, makes MRI quality assurance software.
It did a reverse merger with Vertical Health Solutions, a Florida corporation, becoming its wholly owned subsidiary in April, thereby separating itself from a stumbling incubator which gave it life.
The company’s technology was developed inside Mayo Clinic before Mayo licensed it to the company. OnPoint’s software automates a mandatory accreditation process required of hospitals and imaging centers to get federal reimbursement for MRI scans. A federal mandate to require regular accreditation is set to go into effect in January 2012. Private insurers are already requiring accreditation, Cavanaugh explained in an earlier interview.
By Arundhati Parmar
Arundhati Parmar is the Medical Devices Reporter at MedCity News. She has covered medical technology since 2008 and specialized in business journalism since 2001. Parmar has three degrees from three continents - a Bachelor of Arts in English from Jadavpur University, Kolkata, India; a Masters in English Literature from the University of Sydney, Australia and a Masters in Journalism from Northwestern University in Chicago. She has sworn never to enter a classroom again.More posts by Author
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