If you believe patients not taking their medicine, think again.

With some 21 percent of prescribed medications never being used and deaths related to patients not fulfilling care plans prescribed by their doctors running more than 120,000 a year, the American healthcare system needs a remedy.

Clinication, citing those figures and estimates that non-compliance costs the healthcare system $100 billion a year, believes it offers a solution for a growing healthcare challenge. A software startup launched in 2002, Clinication is focused on the problems posed by patients not adhering to care treatment plans. The company is rolling out what it calls “patient adherence management systems” that are designed to help patients, their healthcare providers, insurers and benefits providers as well as caregivers “to better comply with complex medication regimens and self-care guidelines”.

At its core, the Clinication solution offers a web- and cell phone-based system that enables secure communications between patients and clinicians about treatment programs.

Company executives will have lots to discuss at InfoTech 2005 on Wednesday about their business — and how they are growing.

Clinication is one of more than 20 firms who will be discussing their technology at the annual Council for Entrepreneurial Development’s conference. The firm can also talk about its first institutional funding.

Synectic Asset Ventures, which is based in Vancouver WA, recently invested in Clinication. The amount was not disclosed.

“Clinication’s unique innovation and focused approach in addressing a considerable and costly public health problem represents an exciting emerging market, especially at this time when Medicare is rolling out prescription drug benefits and consumer-directed health is growing in prominence” said Craig Berkman, founder of Synectic Asset Ventures, in explaining the funding. “Their technology is perfectly timed and in alignment with current healthcare and demographic trends, and we have great expectations of this company and its management team.”

The funds will be used to accelerate sales and marketing efforts, according to Adee Feinstein, Clinication’s chief executive officer and one of its co-founders.

“As our company enters the commercialization phase of its development we are fortunate to find ourselves in partnership with Synectic Asset Ventures, who bring to the table years of experience in assisting early-stage Healthcare and Life-Sciences start-ups. Additionally, we expect to tap into and greatly benefit from Synectic’s impressive advisor network.

Clinication has developed a web- and cell phone-based patient adherence management system that enables secure communications between patients and clinicians about treatment programs.

In a Q&A, Feinstein discussed Clinication’s founding and focus with Local Tech Wire:

What makes your technology unique?

Clinication utilizes a convergence of technologies to tie together providers, patients, and their caregivers, creating an online relationship which transcends the traditional office visit, promoting improved care plan adherence and timely monitoring and interventions.

Companies are more than technology. How is your management team trying to mold the company into a winning venture beyond having a technical advantage or needed service?

By utilizing Clinication as a tool with which we engage an entire community of healthcare providers, regardless of ability to pay, in promoting improved care plan adherence. Successful deployments will yield results which transcend commercial success, and will in effect act as a force multiplier in the dissemination of better health behavior.

What was the original inspiration (or invention) that led to the launch of your company?

The realization that over 125,000 Americans die each year as a result of not following their prescribed plan-of-care.

What markets / needs are you seeking to address?

The annual cost of noncompliance to health insurers exceeds $100 Billion, and 21 percent of all prescribed medications are never dispensed. Clinication delivers adherence-improvement solutions to a variety of stakeholders, including health insurance, pharma, disease management, and health providers.

What have been the primary challenges you have faced in launching and then growing your company?

Adoption of information technology within the healthcare market is always a challenge, as is physicians’ perception of their patients’ health behavior and Internet access. Moreover, Clinication provides a solution to a widespread health problem which is manifested in a multitude of settings, environments, and demographics. As such, the company’s single biggest challenge is maintaining focus on those specific markets it chooses to serve.

Was entrepreneurial spirit a real driver for your company’s founders and executive team to bring your firm to this point?

There is an old adage which states: “An entrepreneur is a person who wakes up every morning and risks everything”. Considering the level of personal investment and risk undertaken by the founders, the company’s reliance on a network of formal and informal advisers, and its collaboration with other startups, one may safely state that Clinication is the quintessential entrepreneurial-driven company.

How is your company financed? Do you have plans to seek additional investors or venture capital?

The company has been financed by its founders, external angel investors, and by an early-stage fund. The company is seeking to complete its series “A” raise by the end of the year.

Just the Facts about Clinication: www.localtechwire.com/article.cfm?u=12481