Health IT firm OnPoint Medical Diagnostics seeks $5M

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.