Hoana Medical to equip Kahala Nui with LifeBed system
Medical device maker Hoana Medical Inc.
has sealed a deal to provide its flagship product at Kahala Nui, its first skilled-nursing facility since opening in 2001.
The Honolulu-based health-care company, spawned by local engineering and technology firm Oceanit Laboratories Inc., this year is aiming to sell 800 to 1,000 devices that allow doctors and nurses to track the vital signs of patients in bed with out the use of direct connections.
The agreement with Kahala Nui in Honolulu includes equipping its skilled nursing ward -- typically comprised of 25 beds -- with the medical units. The first phase of the deal is expected to generate more than $160,000 this year, according to Patrick Sullivan, president and chief executive officer. The retail price for a device is $18 per day or $6,570 a year.
Up until now, Hoana has solely focused on expanding throughout acute-care hospitals. The company expects to generate $2 million in revenue this year and another $16 million next year, as clients expand the product throughout existing medical facilities.
"We're almost adding a new facility a week around the country," Sullivan said.
Hoana last month won a contract to provide its LifeBed system to Veterans Administration hospitals in Florida and Nebraska as well as a health-care system in Pennsylvania, through a program funded with $1.7 million from the U.S. Army Medical Research Command and the Telemedicine and Advanced Technology Research Center.
In addition, the health-care company earlier this month said it will equip Queen's Medical Center with 100 additional units, bringing the total number of LifeBeds at the Honolulu hospital to 150.
Hoana has raised about $40 million in private equity since 2001 and is seeking to raise between $15 million and $30 million in its fifth round of financing focused on health-care organizations and distribution partners, with shares being sold at $1.96 each, Sullivan said.