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ICS grows by serving as clients’ “virtual CIO”
ENDICOTT — Penton Publications recently named Endicott–based ICS Solutions Group (ICS) one of the top-500, managed-service providers in the world. The award is granted to companies that provide software and support allowing for off-site and remote management of their clients’ assets. The award is just the latest accolade for ICS, which was established in 1986
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ENDICOTT — Penton Publications recently named Endicott–based ICS Solutions Group (ICS) one of the top-500, managed-service providers in the world. The award is granted to companies that provide software and support allowing for off-site and remote management of their clients’ assets.
The award is just the latest accolade for ICS, which was established in 1986 by George Schwarztrauber to repair computer hardware. He sold the company in 2005 to its current owners, Kevin Blake and Travis A. Hayes, who had joined the firm in 1996 and 1999 respectively.
“When Kevin and I began at ICS, the company had a break-fix model … When your PC [malfunctioned], you called us to repair it. Today, we have a proactive model, not a reactive one,” says Hayes, the company vice president, chief technology officer, and COO.
Blake, who is president of ICS, focuses on business development and administration, and Hayes, whose focus is IT delivery, have ramped up company revenue to a current sales level between $6 million and $7 million annually, a figure estimated by The Business Journal.
“We now have 46 employees, based on a seven-year growth rate that exceeds 30 percent compounded,” says Hayes. “Thirty-six are employed here in Endicott and another 10 at our Syracuse location [2518 Erie Blvd. E. in Syracuse].”
ICS is an owner, along with two silent partners, of the 40,000-square-foot Endicott location, which is called Square Deal Place. The real-estate company is called BiLaw, LLC. “We occupy 6,500 square feet in the building … Kevin and I own the 4,500-square-foot building in Syracuse through a company [we formed] called ICS Realty, LLC,” Hayes says.
Hayes and Blake are the two corporate stockholders with Hayes holding 14 percent of the shares and Blake 86 percent.
The proactive model Hayes describes still has IT as the core business. “Today, we help our customers navigate through every phase of technology,” says Hayes. “They think of us as a virtual CIO (chief information officer) offering technology consulting, help-desk assistance, and [lifecycle] management of their hardware and software … We do this on a fee basis, which allows our customers to budget more accurately and provides ICS with a steady cash flow … In addition to our managed services, ICS offers repair services for printers and copiers, sells refurbished copiers, and has a toner [division] with toner on demand.”
“ICS is also in the cloud,” adds Hayes. “We work with Office 365 (a Microsoft program), which provides affordability and portability … Our customers can access their workplace from anywhere and with any device … That means their data is always on … We also provide emergency response to get our customers back on track, … and we specialize in installing video cameras for those who need a video wall … In addition, we sell and support Cisco [United Communications] to integrate our customers’ phone systems with their computer networks … We even do our own cabling.”
ICS, headquartered at 111 Grant Ave. in Endicott, has retained its focus on small and mid-size enterprises. “Our sweet spot is businesses with 5 to 25 users in the network,” says Hayes. “This is our meat and potatoes, even though we have some customers with hundreds of users that require us to be onsite daily … We specialize in certain industries, such as dental offices and convenience stores, but we also serve car dealerships, doctors’ offices, law offices, accounting firms, insurance agencies, and manufacturers … Geographically, we have extended our [coverage] since acquiring MicroTech in Syracuse in 2010. We now reach from Oswego County to Bradford, Susquehanna, and Wayne [counties] in Northern Pennsylvania and from Otsego [county] to Monroe [county].”
“One thing that has helped us stay ahead of changes is our affiliation with HTG (Heartland Technology Group),” says Hayes. HTG is an organization of technology-industry resellers that collaborate with their peers on best practices. Peer groups include 10 to 12 IT companies of similar size, number of employees, similar lines of service and ownership structure, and located in non-competitive markets. “We meet quarterly and share everything. HTG is a global group that benchmarks technology and looks at trends … It is based on the power of peers,” avers Hayes.
“We need to set ourselves apart from the competition,” says Hayes. “In Syracuse, we find ourselves competing with companies like Usherwood and J.B. Kane and in Binghamton with Red Barn … Our strategy is to be a one-stop shop and to emphasize service … ICS now has a help desk manned every day from 8 a.m. to 5 p.m. There is no auto-attendant; if the three people on the help desk are tied up with customers, [subsequent] calls go to another employee … If the employees monitoring the help desk don’t know the answer to the customer’s question, they find someone who has the answer.”
“We also need to separate ourselves by training our techs to be business consultants,” continues Hayes. “It’s not enough to fix a problem; our reps have to help our customers grow … It’s a challenge to take technical people who are often introverted and focus them on understanding the customer’s business … This is how to build a long-term relationship with our customers.”
“We also need to function as one, big, [integrated] team,” says Hayes. Our response to a customer has to be seamless … If the Syracuse techs are tied up, we need to dispatch one from Endicott … Our customers depend on us to be connected 24/7,” concludes Hayes.
ICS’ meteoric rise has been helped by local professionals. “We rely on M&T Bank for all our banking needs’” says Hayes. “For our legal work, we use the law office of John G. Dowd of Binghamton, and for our accounting, we turn to Salvatore R. Peretore, CPA, located in Endicott.
When asked about future plans, Hayes says ICS is always looking for opportunities that are profitable. “We have no interest in growing just to grow,” says Hayes … We think Syracuse has real potential [as well as] other areas like Utica, Watertown, and Elmira … There is no reason we shouldn’t double [in size] in the next five years both through organic growth and M&A (mergers and acquisitions).”
Blake, 39, and Hayes, 38, met as undergraduates at SUNY Oswego. Their friendship has blossomed into a business partnership that has ICS Solutions Group on the fast track to continue growing at 30 percent.
Contact Poltenson at npoltenson@cnybj.com
Five Star Urgent Care expanding to Cicero in May
CICERO — Five Star Urgent Care Medical, a nascent, growing upstate New York emergency medical-service provider, plans to expand to Cicero in May. This comes only one month after the company added its third location in Ithaca on March 4. Its first two sites are Jamestown and Big Flats. “We did some research and found
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CICERO — Five Star Urgent Care Medical, a nascent, growing upstate New York emergency medical-service provider, plans to expand to Cicero in May.
This comes only one month after the company added its third location in Ithaca on March 4. Its first two sites are Jamestown and Big Flats.
“We did some research and found that there is a growing population in that area,” Dr. John Radford, M.D., co-owner and founder of the Five Star Urgent Care, founded in January 2012, says about Cicero. “We believe our urgent care could be a valuable service to the community.”
Cicero had a population of 31,632 in 2010, according to the latest U.S. Census data, up 13 percent from 27,982 in 2000.
The Cicero branch of Five Star Urgent Care, located at 8003 Brewerton Rd. (Route 11), will open on May 15. The medical practice will hire 10 employees, including three physicians. Five Star Urgent Care leased the 3,000-square-foot space for a 15-year term. Radford declined to disclose the financial terms of the lease. But, he says the startup costs to open up a new location, including equipping it, total about $500,000.
The Cicero Five Star Urgent Care will be equipped with EKG and X-ray machines, according to Radford. It will also be able to perform minor procedures such as incision, drainage, and splinting on site.
Company background
Five Star Urgent Care provides walk-in access for treatment of acute illnesses and injuries. Its other three offices include a 4,600-square-foot location at 830 County Road #64 in Big Flats, a 3,200-square-foot center at 15 S. Main Street, Jamestown, and a 3,400-square-foot branch at 740 South Meadow St. in Ithaca. It leases all four offices.
Five Star Urgent Care now has about 50 employees, including four physicians, working across its current three locations.
Radford and another partner, whom he declined to name, co-own the company.
Radford, 42, an M.D. specializing in emergency medicine, graduated from the SUNY Buffalo School of Medicine and Biomedical Sciences in 1997. Before founding Five Star Urgent Care, Radford spent four years working for the Amherst–based health-care-management organization The Exigence Group and seven years for Orchard Park–based emergency medical-service provider FDR Medical Service, P.C.
Radford declined to disclose Five Star Urgent Care’s annual revenue in 2012.
In discussing the possible growth trajectory for the Cicero location, he explains that an urgent-care center typically starts by accepting 5-10 patients per day in the first few months. Radford’s goal is to grow to 40-50 customers a day in the next 18 to two years at the new location.
The mission
Five Star Urgent Care says it offers affordable urgent care for an array of non-emergent medical needs ranging from diarrhea and allergies to abrasions and broken bones. Every Five Star center is fully equipped to perform electrocardiogram, electrolyte testing, STD testing, intravenous therapy, pregnancy tests, rapid strep, and X-rays.
The Elmira and Jamestown branches of Five Star Urgent Care both received the Certified Urgent Care Center designation, a certification awarded by the Urgent Care Association of America (UCAOA) to organizations meeting certain facility and medical staff criteria. Five Star is the only certified urgent–care provider in the Great Corning, Elmira, and Jamestown areas, according to Radford.
In addition to walk-in medical services, Five Star offers occupational health-care services. It helps company customers design physical and drug-screen protocols and perform examinations, including blood testing, pulmonary function testing, audiometry, EKG with interpretation, and chest X-rays.
The average waiting time after registration at Five Urgent Care is about 15 minutes, says Radford, and the average treating time is about 40 minutes.
For uninsured patients, the cost for examination and basic treatment is around $110. If advanced procedures such as stitches or X-rays are needed, the cost is around $175, Radford explains. For insured patients, the emergency co-pay ranges from $15 to $50, depending on the insurance company or health plan.
Five Star Urgent Care accepts private insurance from Aetna, ELMCO, Excellus BlueCross BlueShield, POMCO, RMSCO, Today’s Options, and United Health Care, among other firms, according to its website. It also accepts Medicare and managed Medicare plans of the private insurers it works with, as well as some managed-care Medicaid plans.
If patients need only a prescription instead of medical services, Radford adds, the company can directly send electronic prescription copies to the patient’s local pharmacy.
Five Star Urgent Care offers flat screen TV and computers in its waiting rooms Radford noted. “We really try to give people a pleasurable experience if they have to wait at all,” Radford said.
Burgeoning industry
Five Star Urgent Care’s rapid expansion reflects the growth of urgent-care centers as an alternative to more expensive hospital emergency rooms.
In a study published on Feb. 27, a group of researchers, led by the department of emergency medicine at Stanford University, found that the median charge for outpatient services in the emergency room reached $1,233. In comparison, most urgent-care centers charge about a few hundred dollars.
As for services, urgent-care centers can meet most non-emergent medical needs, except serious medical conditions or mental illness that requires immediate treatment. Such conditions include heart attack, stroke, poisoning, high fever, and seizure, according to information provided on the website of Five Star Urgent Care. In those conditions, the patients should directly dial 911.
The U.S. has more than 8,700 urgent-care centers, according to the website of UCAOA, and the number is growing by 300 a year. UCAOA estimates that about half of those centers can meet the criteria of a certified urgent-care center. There are now 71 certified urgent-care centers in the New York state.
Contact The Business Journal at news@cnybj.com
Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.