Monday, July 24, 2006

Silverlink lands $6 million funding

By Christopher Calnan

Burlington-based Silverlink Communications Inc. closed on a $6 million Series C round of funding this week. Company executives say the cash will be used to expand its automated messaging business by more effectively targeting the health-care industry's need to cut costs and consumer demand for direct access to health-care information.

"We're really funding growth," founder and chief executive Stan Nowak said. "We flirt with profits, but right now I'm in an investment phase. I'm not worried about profitability right now."

Although he declined to reveal revenue figures, Nowak said Silverlink tripled its revenue last year and plans to double it this year. He attributes the 4-year-old company's growth to good timing.

Silverlink's software enables health-care customers to automatically send telephone messages to patients and clients. For example, the systems can update patients about changes to their health plans or prescriptions, or remind them of doctor's appointments.

Customers include Hartford-based Aetna Inc. and Familymeds Inc., a Farmington, Conn.-based company that supplies health care-related products and operates more than 80 pharmacies.

Competitors in automated voice messaging include Beverly-based Eliza Corp., Chicago's CenterPost Communications and TeleVox Software Inc. in Alabama.

At Aetna Rx Home Delivery, a mail-order prescription drug service and Silverlink customer, automated voice messaging is considered the least costly and most effective way to communicate with members, said Andy Higgins, Aetna Rx's marketing manager.

"It's the next best way to interact with them," he said, in comparison with contacting members directly.

Dr. Dale Magee, president-elect of the Massachusetts Medical Society and chairman of its Clinical IT Task Force, said the automated systems are growing in popularity because they help cut down on no-show patients as well the cost of hiring a worker to make reminder calls.

"It is a good idea," Magee said. "What it amounts to is, you can free up a (staff) person."

The latest round of funding raised brings the total investment in Silverlink to $13.7 million, Nowak said.

He said he expects Silverlink to remain focused on the health-care market and grow by improving automated messaging and increasing its adoption in the market.

"Clearly, all options remain open to us," Nowak said. "My focus is to grow organically by working with customers to educate consumers and drive the right health behaviors."