Wisconsin ENT's nose for business nothing to sneeze at

Making sidelines pay

Doctors who branched out beyond running their practice tell why they did it, how they did it, and what you should know before you do it.
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Name: Diane Heatley, MD

Specialty: Pediatric otolaryngology

Location: Madison, Wis.

Business: Med-Systems Inc., which created and sells SinuCleanse, an all-natural nasal wash designed to treat patients with sinusitis or allergies.

The product kit, which is now sold in Walgreen Co. stores around the country, consists of a modified neti pot -- a small pot with a handle and spout in the shape of a genie's lamp -- and dry saline packets. Patients mix the saline with lukewarm water, and use the pot to pour the solution through their nasal passages. Suggested retail price of the product is $14.95.

Annual revenue: Dr. Heatley and her brother and business partner, Dave Gallo, declined to give exact figures, but Gallo estimated sales to be "in the millions."

Why she started the business: A nurse Dr. Heatley worked with suggested she try prescribing neti-pot therapy as a way for patients to clean clogged nasal passages. Her finicky adolescent patients started to warm to the therapy, adult patients liked it, and most importantly, surgeries among her patients declined. Dr. Heatley talked to Gallo about creating a plastic version of the pot and marketing it.

How the business developed: The pair focused first on marketing the product to other health professionals. The company contracted with several companies to produce the materials and a distribution house to assemble and ship the product.

As word spread throughout Madison, the focus shifted to consumers, who were asking for the product in local pharmacies. Drug stores in the area, including Walgreens stores, started to carry it, though when the company had made its pitch to Walgreen Co. headquarters, SinuCleanse initially was turned down.

"But we had enough growth through the local Walgreens for them to notice us," Dr. Heatley said. "We've been available nationwide since October [2003]."

Why she keeps practicing: The company, which started in 1997 and got its big break last year, "is self-sustaining" but isn't turning enough profit to allow such a move, she said.

Words of wisdom: "You always have high hopes," Dr. Heatley said. "Millions of people have sinus and allergy problems. We feel our potential for growth remains unlimited."