Issue 1 Supports Growth of Existing Central Ohio Companies – Not Just Startups

Issue 1, the statewide ballot measure that will, if passed, extend the Ohio Third Frontier program, goes before voters on May 4 during the primary election.  At stake is the renewal of one of the most highly successful economic development initiatives the state has ever adopted with bipartisan support.   One that has not only had a tremendous impact on Ohio and Ohioans, but one which other governments have modeled programs after for transforming their states into globally competitive, 21st Century economies.    

Much has been written about the Ohio Third Frontier, particularly in relationship to its support of new entrepreneurial technology startups – and there is no doubt the impact in this sector has been significant.  But what often goes overlooked is what this program has meant to existing companies in supporting their growth and the retention as well as creation of jobs.  I’d like to address this topic specifically. 

I am the former CEO of HTP, Inc., a company founded in Columbus in 1998 to create Web-based products and services to support the transaction management needs of the healthcare industry.  In the late 90s, our company became very involved in helping healthcare providers become HIPAA compliant.

 In 2004, HTP was the first recipient of funding through the Innovation Ohio Loan Fund (IOLF), a program made possible through the Ohio Third Frontier to assist existing Ohio companies develop next generation products based on intellectual property, software and innovation.  This loan was instrumental in helping HTP develop our flagship product, RevRunner, a best-in-class transaction management software application that helps hospitals and medical providers capture tens of millions in lost revenue, thus helping hold down healthcare costs for us all. 

In 2006, we received subsequent funding through IOLF which we used to purchase hardware and software and to hire the developers needed to continue advancing RevRunner and the entire suite of HTP software products and services. 

Along the way, we received support from many Ohio Third Frontier programs.  In addition to the IOLF, we also received support from the BioOhio Omeris fund, part of the Edison Biotechnology Fund, TechColumbus and the Ohio TechAngels Fund.  Thanks to these Third Frontier-supported programs, we were able to grow from a $3 million company to an $8 million company, more than doubling our number of employees, in just three years.   In addition, this funding helped us attract follow-on angel and venture capital investments in excess of $1M.

In May of 2008, we were acquired by RelayHealth, a McKesson Company which is the world’s largest healthcare focused company.  At the time of acquisition, I am proud to say that we were able to pay back in full the total $2.5 million we received from IOLF. 

I am also pleased to report that the company retains its Columbus headquarters at Polaris and currently employs over 70 Central Ohio programmers, developers and account managers. 

I have no doubt that our success, and the growth that made us an attractive acquisition target for RelayHealth, is due in no small part to the Ohio Third Frontier. 

As a state, fighting for our place within a global economy, we need the Ohio Third Frontier -- not just for the benefit of university research and startups, but for the growth opportunity the program represents for existing Central Ohio technology companies.

I will be voting yes in the May 4 primary on Issue 1 to extend the Ohio Third Frontier program and I urge other citizens and business leaders to join me. 

Ray Shealy
Former CEO of HTP; Former General Manager of Financial Clearance Services with RelayHealth, a McKesson company.