Empathic Clinical Suites

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In May of 2008 when I met Debra Lindell, the founder of Empathic Software, I knew that her idea could succeed and could possibly become a paradigm shift in clinical charting and EMRs (emergency medical records). Empathic’s cloud based software service was initially developed just for smaller clinical therapy practices. It was completed in late 2009 and launched in mid 2010. At the outset the plan was to scale to just 10,000 subscribers within 4 years – which was only 3% of what then was just a 300,000 user market. Shortly following its launch we realized that the market was going to be much bigger and that it would include not only small practices, but larger practices as well as chemical dependency counselors, social workers and recently psychiatrists. Empathic’s market has grown from the original 300,000 smaller practices to what is now an addressable market of over 1.1 million.

Empathic’s patent filed technology includes a semantic ontology database that contains all of the content of the Diagnostic and Statistical Manuel IV-TR (DSM) which is the “bible” for mental health practitioners. The database steers the appropriate pathway for the therapist and following the conclusion of the consultation they can simply press a button and it files the claim, keeps tabs on the processing and payment of claims and retains all the important business financial information. Empathic is heading to possibly becoming a standard within the mental health field as a growing number of prominent people in the mental health field are endorsing the product and a growing number of educational institutions have added or will be adding Empathic’s software to their curriculum to train mental health therapists and psychiatrists in clinical charting and how to use the DSM.

The most compelling thing about this is that SaaSware services offered in “The Cloud” are virtual businesses that don’t require a lot of overhead and can produce high gross margins. For this reason Empathic is capitalized as an LLC and projects to payout enormous recurring revenue distributions to all its owners. The average monthly cost for the therapist including the basic subscriber fee and fees for claim’s filing should exceed $150+ per month on average. They currently have 300+ subscribers and they expect to have 1200+ therapists signed on by early 2012 and that is sufficient to achieve breakeven operations. They project to scale to 43,000 subscribers (4% of the total market) by the end of 2014. Beyond the breakeven point their profits soar.

Competitive Advantage: Huge, proprietary semantic, ontology database integrated into the charting information that contains all 1400 pages of The Diagnostic and Statistical Manuel (DSM) and steers the therapist to the correct diagnostic nomenclature as they are entering their clinical notes then with a simple click the medical claim is filed. In the future the database will get smarter as to the appropriate pathway that produces the best outcomes. Empathic’s semantic ontology database is the evolution of the means to improve medical care and outcomes. Patent pending, exclusive license and a potential social network.

Website: www.empathic.com

Paul Crawford
Crawford Capital Corp
125 Main St. S.E., Suite 270
Minneapolis, MN 55414
(ofc) 612-576-1436
(cel) 612-308-6466