Sunday, June 14, 2015

MedHab Has Three Employees

The City of San Angelo Development Corporation background packet provided an update on MedHab's employment numbers and possible proceeds from their January fire.  MedHab has three employees.  This is down from 2013 according to the Standard Times:

Dane said MedHab currently has four fulltime employees, and two additional planned for hire in next couple of weeks.

“Again, they haven’t started the big hiring that is anticipated, but they are seeing some growth,” he said.

Current employment is down 50% from Dane's 2013 representations.  City staff said MedHab would add jobs quickly in early 2012.

The company plans to start operations in San Angelo in March, creating 11 jobs in the first year and 23 the following year.  

Two years ago  Council discussed MedHab's promise vs. delivery/

“In moneys of this size ... have we ever considered a time frame?” Farmer said, “The money’s just sitting there in nonuse. How long is a piece of string?”

Dane said staff can bring back a specific time frame to a future council meeting.

Staff had nearly two years to bring a specific time frame back to City Council. During that time MedHab's city provided space caught fire, causing total loss to the building and its contents.  The city owned space was valued at $500,000, with MedHab's contents a total loss at $150,000. The packet did not indicate insurance proceeds from the fire.

MedHab is in the midst of a $3 million equity sale to meet the company's operating and capital needs.  Will those funds enable MedHab to meet their initial employment promises to the City of San Angelo?  Nearly three and a half years into the six year agreement MedHab is 91% short of their initial representations.  That's over promising and under delivering, not something MedHab founder Johnny Ross recommends doing with investors.

Update 6-20-15:  Lamar University published a news report on former ASU professor Timothy Roden's role as MedHab software developer.

No comments: