A Fairborn technology startup firm that received nearly $100,000 in state funding to develop software to help manage patient blood sugar levels is aiming to become a $10 million, 50-employee company within a few years, officials said.
Analytic Diabetic Systems LLC has developed a tool capable of predicting blood sugar values in hospital intensive care unit patients up to 75 minutes in advance by using glucose monitoring results in combination with electronic medical records. The firm is a wholly owned subsidiary of Massachusetts-based Aptima Inc., a human-centered research and development company.
Analytic Diabetic Systems’ (ADS) technology can help doctors keep patient glucose levels within a target range to lower mortality rates and reduce the length of hospital stays, producing “potentially millions of dollars of savings annually to a hospital,” said Scott Pappada, an Aptima biological signal processing engineer and ADS lead of technology research and development.
Pappada developed the predictive modeling algorithm while completing his doctoral degree at the University of Toledo. In 2011, he joined Aptima, which licensed the predictive analytics technology for use in a web-based software application that allows health care providers to securely view the patient data on a desktop, laptop, tablet computer or smartphone.
The GlyCU system brings pertinent glucose information to the forefront of the screen to help determine the patient’s status and where they are expected to be in the future, Pappada said. The technology provides a complete trajectory of 15 glucose values across a 75-minute time frame. This analysis allows staff to visualize trends and can be used to support doctor recommendations for proper insulin dosage to keep the patient in their target range, he said.
“This is a tool that will allow the hospitals to make good decisions and also give the patient transparency into the decisions the hospital is making,” said Ron Storm, Aptima’s director of Dayton operations and ADS business development leader.
Last month, ADS was awarded $98,366 from the Ohio Third Frontier to validate the technology in a clinical study over one year at the Ohio State University Wexner Medical Center.
“The work being done has attracted the interest of numerous physicians as well as the hospital administration at OSU, which has committed to partner in an upcoming study and also expressed interest in purchasing the product once it is available,” said Katie Sabatino, senior media strategist for the Ohio Development Services Agency.
The Third Frontier is a $2.3 billion initiative to boost Ohio’s economy though investments in innovation and technology. The ADS award came from the Ohio Third Frontier Technology Validation and Start-Up Fund, which assists startup companies that commercialize technologies developed by state colleges, universities and other not-for-profit research institutions.
Storm said the technology could help reduce U.S. health care costs by billions of dollars annually.
More than 5 million patients are admitted annually to ICUs in the U.S., according to ADS research. A reduction in hospitalization costs of about $3,750 per patient has been associated with the implementation of intensive insulin therapy and maintenance of tight glycemic control in the critical care setting, the report said.
The Ohio State Medical Center admits about 4,000 ICU patients each year, with an average stay of seven to eight days at a cost of about $2,600 per day. The report found that reducing ICU patient stays by one day would save a large hospital such as the OSU medical center $10.4 million annually.
“There is about a 5,000 percent savings for a hospital to adopt this technology,” Storm said.
ADS plans to focus its commercialization efforts on mid-size hospitals with 100 to 200 patient beds, and 10 to 20 ICU beds. Hospitals of that size represent about 60 percent of the U.S. market and each could save $2 million to $4 million annually by implementing the technology, Storm said.
“If we get 100 hospitals we are a $10 million company,” he said.
ADS currently has two employees — Pappada and Storm — who work from Aptima’s Fairborn office. The company could add 10 to 15 high-paying jobs, including software designers and engineers, after the product launch. “We could realistically become a 50-person company within a few years,” Storm said.
Pappada said U.S. Food and Drug Administration approval is required for physicians to use the system’s clinical decision support suggestions, such as recommended insulin dosages. In addition, other companies are developing competing products, but ADS offers “significantly less cost than everyone else,” he said.
Aptima, based in Woburn, Mass., near Boston, provides human-centered research, development and engineering services for U.S. military research labs, the Defense Advanced Research Projects Agency (DARPA), and the National Aeronautics and Space Administration (NASA). The company had $22.1 million in revenues in 2011, according to Inc. magazine.
Aptima’s Fairborn office has grown from eight to 20 employees over the last two years, making it the company’s second largest facility, Storm said. The company has about 120 employees at offices in Woburn, Fairborn, Orlando, Fla., and Washington D.C.
Analytic Diabetic Systems LLC
3100 Presidential Drive, Suite 220, Fairborn
Company officers: Scott Pappada and Ron Storm
Parent firm: Massachusetts-based Aptima Inc.
Primary product: Software to help health care providers manage patient blood sugar levels.