Network engineer Julian Cordle, foreground, and technician Eric Mowrey work in the offices of Core Business Services. The company is set to become the first recipient of a new Jackson County grant program intended to encourage local job development. - Mail Tribune / Bob Pennell

Core Business Services looks to expand

The rapidly expanding health care universe has created new business opportunities responding to the swirl of regulatory change.

Core Business Services said Monday it plans to open a satellite office in Denver, giving the Medford information technology service provider a toehold in the Rocky Mountain region.

"The health care industry has seen considerable growth in recent years, specifically in the Denver area," said Scott Anderson, president and chief executive officer. "Health care is a complicated industry and what has set us apart is not only our health care competency, but having a health care consultant on our staff that has been an office administrator before and understands HIPAA requirements in addition to technology."

HIPAA, the Health Insurance Portability and Accountability Act, is federal legislation passed in 1996 to protect the privacy of an individual's health information.

Core's downtown Denver office houses remote sales and technical operations

It's a leap forward for a seven-year-old firm that has doubled its employee count — including 22 at its Milligan Way headquarters — in the past two years. Core had revenue of $2 million in 2012 and anticipates $3.5 million this year.

"Our expansion plans to this point have been kind of geographic, where we can keep our administrative and technical support in Medford," Anderson said. "It allows us to get to those markets pretty inexpensively."

Core offers fixed-fee network management, backup and disaster recovery, cloud computing, enterprise project implementation, as well as managed print services. The company opened an office in Portland, where its two largest clients operate, 18 months ago.

"Things have gone very well there," Anderson said. "It's relatively close and we have guys go back and forth to meet with clients and train. Denver is not a drive, but at least it's a direct flight."

Doctor and dentist offices will be primary targets for Core, Anderson said. "A lot of industries don't need specialized IT consulting, but health care does, because there are more and more requirements."

Anderson anticipates it will take about four months to get the traction the company seeks in the medical community.

"We have three clients there on a smaller level now," he said. "We would like to have 10 or so by the end of the year. The way we are set up, we really to don't have to worry about maximum capacity. If we grow rapidly, we can add staff there and here, and if we don't hit the growth plan we just don't add staff as fast."

Core also has clients in Washington, Idaho, California, Alaska, Tennessee, Wyoming, New York and Nevada.

What put Denver on Core's radar was a long-term relationship with Green House Data, situated 90 miles north in Cheyenne, Wyo. The cloud hosting center with massive storage capability announced an expansion of its own just last week.

"We can use their data centers, rather than build our own infrastructure," Anderson said.

While no additional geographical forays are in the works, he said, Green House Data's footprint could provide opportunities down the road.

"The goal is to develop an anchor client in a region and then backfill around it," Anderson said.

He said Core Business Services plans to announce an acquisition of a local Web design firm next week.

Reach reporter Greg Stiles at 541-776-4463 or Follow him on Twitter @GregMTBusiness.

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