VGM signs up for e-CMNs

Sunday, May 18, 2003

May 19, 2003

LAS VEGAS - The VGM Group’s interest in e-CMNs reached a new plateau at Medtrade Spring when the trade group signed a participating service provider agreement with ZDMED Corp., a distributor of eClickMD’s e-CMN product.

VGM is now talking with a number of its larger customers about beta-testing an e-CMN product that’s still revving up for a real-time debut. Trac Medical is the only other company marketing an e-CMN product to HME providers. Three of its eleven HME customers are now sending live e-CMNs.

VGM steered around Trac Medical since it considers Trac’s upfront costs - as much as $2,500 for a single HME provider location - a substantial barrier to entry. “We need to start generating volume with e-CMNs, but we couldn’t do that with upfront costs,” said Jim Walsh, president of VGM Management.

EclickMD said it didn’t plan to charge an upfront fee. Per e-CMN charges will come in at less than $3.

There is some question about eClickMD’s financial stability. On May 13, the company filed for bankruptcy under chapter 11. In a release, the company reported that the voluntary gesture was “part of its financial strategy to ease the company's debt service associated with years of high-cost technology development.”