Tech startup of the month.

• Author: Peterson, Eric
• Position: Financial Healthcare Systems Corp. - Company overview

"Technology is available. We use it for our care; let's use it for administrative purposes as well. Patients want their doctors to use the best X-ray equipment and the best surgical equipment. Why wouldn't you expect the registrar at the front desk to have the most information possible?"

--FHS Corp. Chairman and CEO Tim Estes

INITIAL LIGHT BULB

With a background in finance at several Denver-area hospitals, Tim Estes launched his own health-care information technology startup in response to the industry's need to play technological catch-up as the payer paradigm shifts.

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"Health care is traditionally slightly behind the curve when it comes to adopting new technologies," said Estes, the CEO and chairman of Financial Healthcare Systems Corp. "What we have seen, with more of the financial burden being presented to the patient, health care has to get up to speed in processing transactions."

Estes co-founded FHS Corp., now seven employees strong, in 2004 with President Travis Gentry. The project began as a contract to develop a system for HealthOne, but the duo negotiated to spin off their work to the broader market in 2005.

IN A NUTSHELL

FHS Corp.'s flagship product is ACE Logicus, an Internet-based solution for hospitals, surgical centers and health-care providers.

"It estimates a patient's financial liability at the time of service," Estes said. "To try and collect funds after the fact when the patient feels much better is very difficult. Providers are required to come up with technology solutions to help them collect money."

In today's profit-driven health-care industry, patients, providers and payers all demand more and better information, especially patients facing higher out-of-pocket expenses than they have in the past, Estes said.

"You're seeing a greater number of patients transitioning into higher-deductible plans and health-care savings accounts," he said. "Some have difficulty understanding how that impacts their overall cost of care. Then the health-care providers have to come up with a solution of how to collect funds from the patient, and patients who understand their benefits are more likely to pay than those who don't."

It ultimately boils down to good, real-time communication, Estes added...