VGM signs up for e-CMNs

Saturday, May 31, 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 11 HME customers are 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, and that its 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.”

VGM is taking the bankruptcy news in stride. “We are aware of the reorganization and are confident that E-ClickMD will be one of the survivors in this area of technology development,” said VGM Group President Ron Bendell. HME