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NEW CEO INVESTS $1M IN HEALTH FUND FIRM
Gazette, The (Colorado Springs), Nov 29, 2007 by WAYNE HEILMAN
A former WebMD Health Corp. executive has been named CEO and invested more than $1 million in Colorado Springs-based startup company MyHealthFunds Inc.
Pradeep Goel made the investment through StoneTree Holdings Ltd. to allow My-HealthFunds to expand its staff from 12 to 30 to 35 by the end of 2008, said Rich Elfenbein, vice president of business development.
MyHealthFunds, which helps firms set up and administer health savings accounts, was started by Elfenbein and Ron Diegelman, who is the company's president and chief financial officer. The company, which did not previously have a CEO, plans to hire up to 200 workers locally during the next five years.
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"We have been seeking a dynamic young executive who is knowledgeable about trends in health care and has had extensive dealings with health care and insurance providers," Diegelman said. He said Goel also brings "an extensive knowledge of health care technology."
Diegelman didn't look far for a CEO -- he and Goel previously worked at the same firm. Diegelman was senior vice president and chief financial officer at Dakota Imaging Inc., a Columbia, Md.- based medical record processing and scanning company. Goel was senior vice president and chief operat- ing officer at Dakota Imaging.
Goel said in a news release that he is "excited to join a dynamic team in a fast growing market, where both employers and employees stand to benefit from greater control over their health care decisions and cost reductions." He was not available for further comment.
WebMD bought Dakota Imaging in 2004 for $40 million upfront and an additional $25 million if the company met financial goals. A year later, WebMD fired Pradeep Goel and Sandeep Goel, Pradeep's brother and Dakota Imaging's president, and sued them in the Delaware Court of Chancery, according to The Record in Hackensack, N.J.
The suit alleged Pradeep and Sandeep Goel:
Breached employment agreements.
Instructed Dakota employees to delete information related to pre- merger finances from company computers.
Arranged to copy Dakota's confidential coding for soon-to-be- released software.
Directed employees to buy $150,000 in equipment for a customer without a contract or WebMD approval.
Failed to disclose to WebMD that Dakota discontinued backup protection for its software.
Undermined the Dakota board and WebMD officials by criticizing the company's decisions, refusing to reassign certain employees and not carrying out sales directives.
An attorney for the executives, Ward Coe, denied the allegations in 2005 and said Pradeep and Sandeep Goel were ousted to avoid paying the financial incentives, according to The Record.
The suit was settled with neither side acknowledging wrongdoing, Elfenbein said. A spokeswoman for Emdeon Corp., which now owns Dakota Imaging, said the suit is "no longer active" but declined further comment.
MyHealthFunds is working with about 24 clients in Colorado and nearby states, although not all have signed contracts, Elfenbein said. The company plans to seek institutional investors next year to finance its continued expansion, he said.
Health savings accounts are designed to be used with high- deductible health insurance plans -- those averaging about $3,500 per family compared with a $250 deductible for traditional health plans. High-deductible plans typically carry lower monthly premiums.
Employers typically put those premium savings into workers' health savings accounts to help pay for deductibles. Even after making that contribution, employers can save up to 22 percent on health care spending, Diegelman said during a September interview.
CONTACT THE WRITER: 636-0234 or wayneh@gazette.com
PRADEEP GOEL AT A GLANCE
- Became chief executive Wednesday of Colorado Springs-based MyHealthFunds Inc.
- Managing director of StoneTree Holdings Ltd., a Florida-based investment firm.
- Senior vice president and chief operating officer of Dakota Imaging Inc., a Columbia, Md.-based medical record processing and scanning company, until fired with Sandeep Goel, his brother and Dakota's president, in 2005 by WebMD. WebMD had bought Dakota a year earlier. He joined Dakota in 1991.
- Earned bachelor's degree in industrial engineering from University of Panjab in India.
Sources: MyHealthFunds Inc., Dakota Imaging
Inc. and The Record of Hackensack, N.J.
Copyright 2007
Provided by ProQuest Information and Learning Company. All rights Reserved.
