Past Winner Stories
Gateway Medical Resource Alliance
From the company’s initial success – growing revenues from zero to $1.6 million in three years – Gateway Medical then experienced two nearly simultaneous challenges that threatened to derail the company before it reached its full potential.
The company was founded in Ft. Wayne, Ind. in 1997 to provide contract services to physician offices. A physician-owned company, Gateway had the experience and insight to understand the needs of these practices and brought services to the market at prices 15 to 20 percent lower than leading managed care companies. By 1999, Gateway had expanded beyond its Ft. Wayne roots with offices and employees in Ft. Wayne, Indianapolis and Evansville. By 2000, the company had grown to more than $1.5 million in revenue, with 108 employees statewide.
Then, in the fall of 2001, Gateway received its first blow. The second-largest managed care company began to challenge Gateway, threatening its distribution channel. After unsuccessful attempts to resolve the dispute, Gateway filed suit in Federal District Court alleging the managed care company’s activities violated antitrust statutes.
The company’s success had awakened a sleeping giant, and now Gateway would face its formidable competitor in court.
While the cause of the suit was noble, the time demands of the case diverted management and staff from sales and product development. Gateway was losing its momentum and market share throughout the process. When the court denied Gateway’s preliminary injunction the next spring, the case was dismissed. After months of putting its full energy behind winning, Gateway had nothing to show for its efforts, except lost business and significant legal bills.
On the heels of this setback, a customer that represented more than 20 percent of Gateway’s business filed for insolvency. Despite a start that indicated Gateway was on the road to prosperity, the company found its very existence threatened. Yet, the company realized a demonstrated need for its services in the marketplace. It was clear the company had a successful model, but Gateway would need to push beyond the challenges at hand to reach the critical mass necessary to achieve and sustain profitability.
The solution lay in the company’s expansion strategy. Gateway would grow its market geographically and through a more diverse service offering. Sales and marketing representatives were added to penetrate northwest Indiana. In Chicago, additional staff, including a financial manager, information systems manager and product development specialist, was put in place.
To the south, Gateway expanded its original heart program to Louisville, and developed an orthopedic product it piloted in Indianapolis. The company also added a cancer care product and eventually opened regional offices in Columbus and Evansville. At the same time, Gateway aggressively used sales and marketing to tout the company’s savings and to educate key groups, including patients, physicians, third party administrators, trade groups and centers of influence. Media relations took the message to the consumer market, communicating quality health care opportunities at a lower cost.
Through the combination of these efforts, the company has broken through the challenges to reach new levels of success. In 2001, Gateway had 81,000 enrollees. A year later, that number had dropped to just over 71,000. Today, Gateway serves more than 133,000 enrollees and has grown revenues to just below $7 million.
The company was founded in Ft. Wayne, Ind. in 1997 to provide contract services to physician offices. A physician-owned company, Gateway had the experience and insight to understand the needs of these practices and brought services to the market at prices 15 to 20 percent lower than leading managed care companies. By 1999, Gateway had expanded beyond its Ft. Wayne roots with offices and employees in Ft. Wayne, Indianapolis and Evansville. By 2000, the company had grown to more than $1.5 million in revenue, with 108 employees statewide.
Then, in the fall of 2001, Gateway received its first blow. The second-largest managed care company began to challenge Gateway, threatening its distribution channel. After unsuccessful attempts to resolve the dispute, Gateway filed suit in Federal District Court alleging the managed care company’s activities violated antitrust statutes.
The company’s success had awakened a sleeping giant, and now Gateway would face its formidable competitor in court.
While the cause of the suit was noble, the time demands of the case diverted management and staff from sales and product development. Gateway was losing its momentum and market share throughout the process. When the court denied Gateway’s preliminary injunction the next spring, the case was dismissed. After months of putting its full energy behind winning, Gateway had nothing to show for its efforts, except lost business and significant legal bills.
On the heels of this setback, a customer that represented more than 20 percent of Gateway’s business filed for insolvency. Despite a start that indicated Gateway was on the road to prosperity, the company found its very existence threatened. Yet, the company realized a demonstrated need for its services in the marketplace. It was clear the company had a successful model, but Gateway would need to push beyond the challenges at hand to reach the critical mass necessary to achieve and sustain profitability.
The solution lay in the company’s expansion strategy. Gateway would grow its market geographically and through a more diverse service offering. Sales and marketing representatives were added to penetrate northwest Indiana. In Chicago, additional staff, including a financial manager, information systems manager and product development specialist, was put in place.
To the south, Gateway expanded its original heart program to Louisville, and developed an orthopedic product it piloted in Indianapolis. The company also added a cancer care product and eventually opened regional offices in Columbus and Evansville. At the same time, Gateway aggressively used sales and marketing to tout the company’s savings and to educate key groups, including patients, physicians, third party administrators, trade groups and centers of influence. Media relations took the message to the consumer market, communicating quality health care opportunities at a lower cost.
Through the combination of these efforts, the company has broken through the challenges to reach new levels of success. In 2001, Gateway had 81,000 enrollees. A year later, that number had dropped to just over 71,000. Today, Gateway serves more than 133,000 enrollees and has grown revenues to just below $7 million.