Dan Christensen of MedStar Talks about His Startup

Dan Christensen of MedStar Talks about His Startup

Where are you from originally?

NEWELL, IOWA. A SMALL TOWN IN THE NORTHWEST PART OF THE STATE.

What university did you go to?

UNIVERSITY OF IOWA BUSINESS SCHOOL and the UNIVERSITY OF IOWA LAW SCHOOL

What brought you to Austin?

I SERVED AS AN ATTORNEY IN THE ARMY JUDGE ADVOCATE GENERAL'S (JAG) CORPS AND THEN TOOK A JOB WITH A LOCAL FIRM THAT WAS INTERESTED IN OPENING AUSTIN OFFICES.


What is the idea behind your startup?

TO PROVIDE A MEANS FOR PEOPLE WITHOUT HEALTH INSURANCE TO GET THE TREATMENT THEY NEED WHEN THEY ARE INJURED DUE TO SOMEONE ELSE'S NEGLIGENCE. FOR MANY OF THESE VICTIMS, THEY HAVE NO ASSET OTHER THAN THEIR CLAIM OR LAWSUIT AGAINST THE AT-FAULT PARTY WHO HURT THEM. THEY NEED A WAY TO "COLLATERALIZE" THAT ASSET IN ORDER TO GET THEIR TREATMENT.


What need does it fulfill?

IT ALLOWS INJURED INDIVIDUALS WITHOUT HEALTH INSURANCE TO GET NEEDED TREATMENT. IT ENABLES THESE INDIVIDUALS' LAWYERS TO ENSURE THE INDIVIDUALS GET FULLY COMPENSATED. IT PROVIDES A WAY FOR THE DOCTORS TO PROVIDE TREATMENT TO PATIENTS WHO WOULD OTHERWISE NOT BE ABLE TO GET IT.


What exactly does your product do?

THE "PRODUCT" IS REALLY A SERVICE. WE PURCHASE BILLS FROM MEDICAL PROVIDERS FOR TREATMENT PERFORMED ON PEOPLE WHO HAVE PERSONAL INJURY CLAIMS OR LAWSUITS. WE PURCHASE THE BILLS AT A DISCOUNT AND THEN MAINTAIN A LIEN AGAINST THE PATIENTS' CASES IN THE AMOUNT OF THE DOCTORS' FULL BILL.


Who is it for?

IT IS FOR PEOPLE WHO ARE INJURED DUE TO SOMEONE ELSE'S NEGLIGENCE AND NEED TREATMENT BUT HAVE NO WAY TO PAY FOR IT. IT IS FOR THOSE PEOPLES' LAWYERS WHO NEED TO GET THEIR CLIENTS TREATMENT IN ORDER TO SUCCESSFULLY RESOLVE THEIR CASES. LASTLY, IT IS FOR DOCTORS WHO WANT TO TREAT THESE PEOPLE, BUT ALSO WANT A SAFE, EASY, GUARANTEED WAY TO GET PAID FOR THEIR SERVICES.


What was the most challenging aspect of starting up a business?

OBTAINING SUFFICIENT FUNDING. MANY OF THE MEDICAL BILLS WE PURCHASE ARE FOR $50,000 OR MORE, SO WE ARE IN CONSTANT NEED OF FUNDS.


What is the next step for you and your startup?

WE ARE IN THE MIDST OF DEPLOYING A RECENT ROUND OF FUNDING. WE ARE ALSO FOCUSING ON RAISING THE NEXT ROUND THAT IS PROJECTED TO CLOSE AT THE END OF THE SUMMER. BECAUSE OF THE RATE THE POOLS OF FUNDS GROW, THIS COULD BE OUR LAST ROUND WHICH WILL BE A RELIEF. THIS NEXT ROUND SHOULD ENABLE US TO TAKE ON SOME OF THE BUSINESS WE HAVE HAD TO TURN AWAY OVER THE LAST COUPLE OF MONTHS.


What advice do you have for entrepreneurs?

STAY POSITIVE AND BE COMMITTED. EVERY OTHER ENTREPRENEUR I HAVE EVER SPOKEN WITH HAS CONFIRMED MY EXPERIENCE THAT THERE WILL BE MANY DISAPPOINTMENTS ALONG THE WAY. IT IS IMPORTANT TO KNOW TO YOUR CORE THAT THIS IS WHAT YOU WANT SO THAT YOU CAN STAY POSITIVE AND REMAIN COMMITTED TO YOUR PATH DURING ROUGH TIMES. OH, AND DON'T DO IT FOR THE MONEY. THERE ARE LOTS EASIER WAYS TO MAKE MONEY THAN TO WORK 100 HOURS A WEEK, RISK FINANCIAL RUIN AND PUBLIC EMBARRASSMENT, AND STILL, ULTIMATELY, WORK FOR SOMEONE ELSE (THE INVESTOR). YOU HAVE TO BE SURE YOU WANT IT FOR SOME OTHER REASON THAN JUST MAKING MONEY.


What Austin-based resource have you found to be the most helpful and why?

MANY OF AUSTIN'S RESOURCES ARE AIMED AT HIGH TECH. THAT IS NOT MY BUSINESS SO I HAVE HAD TO GO OUTSIDE OF AUSTIN FOR MUCH OF MY RESEARCH AND MONEY. THE AUSTIN ENTREPRENEUR NETWORK'S WEBSITE AND CLASSES HAVE BEEN GREAT. WITHOUT FAIL, WHEN I GO THERE OR DEAL WITH SOMEONE FROM THERE, I LEAVE WITH NEW IDEAS AND PERSPECTIVES THAT I CAN EMPLOY IN MY BUSINESS. THAT MAY SOUND A STAGED ENDORSEMENT, BUT IT IS NOT - IT IS THE TRUTH.


Best regards,
Hall T.