Sy.Med Proves Its Credentialing Software

By: C. Denise Jennngs
Nashville Medical News - November 2002

Nashville-based Sy.Med Development has perservered in this economic downturn, earning them a distinction as one of The Music City Future 50 and, proving their business really does take a load off for doctors and medical practice administrators.

Sy.Med’s mission is to simplify managed care, and their premier product is OneApp, credentialing application software for physicians and managed healthcare plans, which eliminates an abundance of paperwork and man hours for physician practices.

The company doubled its client list and posted a revenue of $1.1 million in 2001, up 54 percent from 2000, the biggest year since the company was founded in 1995. So far this year the company has grown 65 percent in the first nine months compared with the same period last year, and Jim Aylward, Sy.Med’s CEO anticipates $2 million in revenue for 2002.

“We’re starting to gain a critical mass,” says Aylward. “Prospective clients know our name and usually a practice we are in. We have credibility.” Sy.Med currently has 200 clients and boasts 100 percent client retention.

“We provide excellent technical support, and once customers start using the product, they literally can’t do without it,” says Aylward.

Sy.Med’s products also include PhysicianFinder, a consolidated physician directory software program and OneApp MCO, software for managed care organizations which helps reduce the administrative burden of gathering, maintaining and updating provider data. But the traditional OneApp software, designed for physician credentialing is Sy.Med’s leading product.

OneApp, is a software program which allows a doctor or clinical administrator to input a physician’s information and then automatically complete any credentialing applications at the click of a button. The practice administrator can then print the completed forms for review, have the physicians approve the applications and then forward the application to the appropriate healthcare organization for verification. Sy.Med’s software reduces time and money for physician practices by eliminating redundant manual applications and providing clear applications for credentialing providers. This ultimately results in fewer delays in completing the credentialing process which improves cash flow for a practice.

Currently, physician practices complete about 15 to18 applications each year, says Aylward. “Depending on the application, these forms can be from five pages to 25 pages in length. Multiply this number by the number of physicians in the group and you get thousands of pieces of paper that are handwritten by the office staff.”

Although an economic downturn compounded by the events of Sept. 11 caused many technology companies to falter, Sy.Med’s product is spreading because there is a real return on investment, says Aylward.

Another advantage of the OneApp software is that it is stand-alone software which does not require the Internet for use.

“During the dot com boom when everyone was switching to ASP models, we continued to sell software,” says Aylaward, who was keeping an eye on the reluctance of medical community to completely automate their offices and embrace the Internet.

With some solid success under its belt, Sy.Med is spreading its wings, partnering with independent practice associations, physician corporations, billing companies and other organizations committed to the same goal of simplifying managed care.

In late 2001 Sy.Med signed a significant master licensing agreement with OrthoLink Physicians Corporation, a subsidiary of United Surgical Partners International, which manages 70 orthopedic practices in six states.

“I’ve been using the software for two months,” says Jeff L. Fuller, managed care coordinator for the Tennessee Orthopedic Alliance, one of OrthoLink’s practices. “The biggest benefit is that it’s reduced a file cabinet worth of paperwork down to a hard drive on our computer. It’s reduced the part of the day I spend doing paperwork from 60 percent to 30 percent.”

In addition to the time on the front end, OneApp has reduced the back up of credentialing applications in the office by about one week, says Fuller.

Earlier this year, Sy.Med also signed a marketing agreement with eAppeals Solutions in Florida which has created software that electronically submits appeals on denied claims to payers.

eAppeals is a perfect example of the addition of a new product that is consistent with our goal of simplifying managed care, says Aylward.

As for competition, Sy.Med seems to have found a niche. “There is still no pure play competition that has approached the market like Sy.Med,” says Aylward.

Other credentialing companies and software packages available in the market are designed to work for providers and payors, so the insurance company can use the software as well as providers, says Fuller. “It makes it less customized and pricier.”

The price of Sy.Med’s OneApp depends on the number of physicians and the number of practice locations. The price structure is based on an initial installation charge the first year and 20 percent of that price paid each subsequent year, which includes support, maintenance and upgrades.

Sy.Med’s smallest client is a two physician group with one location and its largest client is a billing company which uses OneApp to bill for approximately 4,500 anesthesiologists.

Customization is not out of the question for Sy.Med either. The company recently developed a primary source verification (PSV) module for The Physicians Incorporated (TPI), an IPA in Louisville with 2,000 physicians which needed software which actually credentialed their doctors in addition to completing credentialing applications. Hackensack University Medical Center in New Jersey is also using the PSV product, that will be marketed to all of Sy.Med’s customers in upcoming months.

Currently Sy.Med products are installed in practices in 35 states, with the addition of another five anticipated by the end of 2002. Ohio and Texas are big markets and the Florida market is becoming hot for the company.

As for the future, Aylward’s mantra is to stay focused, stick to a lean budget and hire good employees with a competitive spirit. In addition, Aylward says Sy.Med continues to look at buying or building additional complimentary solutions that will bring administrative efficiencies to physician practices.

“We don’t want to stray too far, from our core,” says Aylward. “Reducing paperwork is our goal.”