Medical News Puts Medstar In Good Health — Morning Call

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Ferretti 43

Medical News Medstar In Health

January 1987 | RAY HOLTON, Morning Call

Ferretti, a and Paul a Julliard of Music are an pair in unlikely business. 1982, the formed Medstar Inc. in and began produce Health a syndicated television program.

company had employees in first year, was able generate pretax of 15 on $672,000 revenue. Remember, start-ups make in two three years, alone the year. By sales climbed $2.8 million Ferretti reported positive cash of more $500,000.

Today, Health is in 30 U.S. markets and has just the books about $5 in sales in 1986. alsolaunched a product, MedSource, weekly medical service for stations.

The for that appears bright Medstar entered marketing agreement NIWS, a of Lorimar-Telepictures the Los based television producer of shows as Falcon Crest, Landing and Court. Under contract, NIWS already signed 39 television and is to find additional 30 the end February. Medstar 70 percent the revenues the deal stands a chance of even or a profit the first of MedSource, to Ferretti.

Locally, Medstar just sold Matters to Broadcasting System’s Channel 39. program is by Horizon System and member hospitals, Hospital Center St. Luke’s

When we we thought market was to be public television, Ferretti. Instead, network-affiliated stations at the and today the bulk Medstar’s customers.

of Medstar’s to success the program’s and low

One guy us the of television quipped Ferretti.

doesn’t own camera or production studio. derives most its revenue hospitals that Health Matters their local markets.

We rent in the said Ferretti. do the production work post-production. But is done a television (customer).

A Health Matters segment will 12 to minutes of produced videotape subjects such smoking, Alzheimer’s anorexia nervosa, heart disease. s a for the station to in the and end the half-hour using its personnel or local medical or panel.

Ferretti 43

took a leap after growing pains the first of producing Matters.

When hit a to shoot programs (in studios), it to take 10-hour days, Ferretti. Well, meant overtime. we have day trimmed to 6.5 and we shoot 11 in 2.5 Everybody’s paid the day.

The company largely on directors, camera sound crews, it has growing stable full-time production on-camera personnel.

profitability of Matters’ has us to our growth. four-and-a-half years, purchased $750,000 of capital and we it the fashioned way we paid said Ferretti. we have squeaky clean sheet with debt. And more important, founders still all of stock.

We’ve our long-term productively. We don’t buy unless we expect payback less than year.


On the statement, accounts from our Matters’ series are zero, Ferretti. That’s our contract, by TV standards, requires customers to half our fee up when the is signed. enables us pay all our direct expenses and contribute to We get remaining money the day actual completion delivery of television programs.

43, who a master’s in health from Yale was the director of Dorothy Rider Health Care Fund whenhe Dowling, 33, talented musician went into production.

Health Matters, first project, successful enough they channeled energy into MedSource.

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