LONGMONT, CO – SEPTEMBER 6, 2019: Ricky Bumpass repairs one of the company’s oxygen concentrators on September 6, 2019. Quality Biomedical recently closed on a $5 million seed A funding round. (Photo by Cliff Grassmick/Staff Photographer)
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Quality Biomedical is poised for growth after an infusion of $5 million by a New York firm. It’s the first institutional investment for the Boulder company, which services and repairs biomedical equipment for home health care providers across the United States.

The money will be used to add seven service centers to the company’s existing five in Colorado, Florida, Georgia, Missouri and Texas, said PK Bala,CEO of Quality Biomedical. The expansion,which will happen over the next  12 to 18 months, will allow the company to more efficiently cover the Northeast, Midwest and West. It also will help Quality Biomedical expand its services to the emergency medical services and skilled nursing industries, Bala said..

“With 12 centers we can cover 80% of the country,” Bala said.

The company sought help from a small investment bank to connect with potential investors, and found Aeonic Partners. Attention from investors helps generate a positive buzz, Bala said. Aeonic is the right partner for Quality Biomedical, because it is “taking a longer term view of the market,”  he said. In exchange for its investment the New York firm is getting equity in the company and a seat on the five-member board.

As a tech entrepreneur Bala saw an opportunity in home-based health care services when he bought the company in 2015. With increased health care costs, particularly for hospital stays, home medical equipment companies have grown, but they remain an underserved segment in terms of access to servicing and maintenance of equipment, he said. His company focuses on repair, service and  preventative maintenance of respiratory and infusion therapy equipment.

Home medical equipment companies have about 50,000 to 60,000 branches across the country, but there are few equipment service locations where they operate. Most of the companies are concentrated on the coasts and in theSoutheast, Bala said.

In 2016, Bala’s younger brother developed Q-Connect, a software (which is constantly being updated) that helps customers track maintenance and service issues. It also integrates  logistics and warehousing solutions. It was an important step to move the industry forward, which for most part was paper-based, said Jim Worrell, the company’s chief commercial officer. The software improved care providers’ workflows, helped them better manage their assets, and made the business process more efficient, he said. It reduced turnaround time for equipment services.

“Quality Biomedical’s unique combination of proprietary software, national and expanding service footprint, and customer-focus deliver demonstrable value to its customers and industry partners, and is recognized by some of the health care industry’s largest and most sophisticated providers. We are thrilled to partner with Quality Biomedical to support the company’s growth.” Brad Resnick, managing partner at Aeonics Partners, said in a statement.

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