The Kentucky Economic Development Finance Authority voted Thursday to require a Lexington technology company to repay part of a forgivable loan because it had not created the anticipated number of jobs.
Connected Patients LLC was initially approved for a $100,000 forgivable loan in January 2010 to expand its work in creating computer terminals for patients' use in hospitals.
The company was expected to create a minimum of eight full-time jobs for Kentucky residents by Dec. 31, 2011, paying an average salary of $61,000, Finance Authority officials said. In August 2011, the company was given a one-year extension because its customers "are hospitals that are facing tough times and trying to conserve capital," according to state documents.
At Thursday's meeting, the KEDFA board was told that the company had created only one job that met the state's salary standards by the end of 2012.
The company is required to repay $21,875 of the loan under the terms of the deal.
State documents noted, though, that the company asked that the repayment be made over the course of the next 10 months to avoid cash-flow problems. The KEDFA board approved the repayment plan with an interest rate of 1 percent.
A message left for Connected Patients was not immediately returned.
The company developed a bed-mounted computer terminal called ConnectMe. The touch-screen product lets patients access the Internet, learn about their medical conditions and enjoy entertainment options, including games, movies and music. ConnectMe includes a built-in camera to allow online video communication.
Connected Patients leases, installs and maintains the devices in hospitals, according to state documents.
Scott Sloan: (859) 231-1447. Twitter: @HeraldLeaderBiz.