Alliance Physician Services selects Physmark for Management of its Integrated Delivery System.

DALLAS--(BW HealthWire)--July 8, 1997--

Oracle(R)-Based Software Speeds Claims Processing;

Decreases Time to Adjudicate Claims

Editor's Summary: Alliance Physician Services

has selected Physmark, Inc.'s MEDICOMP

software to handle its data management needs,

including the automated claims processing,

authorization and utilization management of

this 75-physician MCO (Managed Care

Organization). Physmark is the leading

provider of software for integrated delivery

systems. Its software is now installed at more

than 80 provider organizations across the

country.

Alliance Physician Services, a Managed Care Organization (MCO) formed to provide administrative services to the 75-physician member Hillcrest IPA, has selected Physmark Inc.'s software to handle its data management needs. The software, called MEDICOMP, will be used to adjudicate claims, as well as manage utilization procedures and authorization for the MCO's nine contractor groups.

"Within just a few months the Physmark system has significantly improved our claims processing procedures and decreased the time it takes to adjudicate claims," said Stephanie Olivier, acting executive director for Alliance Physician Services. "Physmark's built-in flexibility allows us to manage scores of contracts, each with its own unique guidelines and set of distinct physicians. We chose the system based on its ability to handle this type of complexity; MEDICOMP is already helping us determine which contracts are profitable and which are not."

Alliance Physician Services was formed in 1996 as a partnership between Santa Rosa Memorial Hospital of Santa Rosa, Calif., and Hillcrest Physicians Medical Group of Petaluma, Calif. Its charter is to provide administrative services to the Hillcrest IPA, including contract and utilization management, claims administration, quality review and financial reporting.

Alliance Physician Services is also implementing a physician module of the Physmark system which provides doctors and their staffs with online access to claims, eligibility and authorization.

"Our software is designed to meet the needs of the very fast- paced, highly competitive integrated delivery environment," said Dr. Jacob Kuriyan, president of Physmark. "We are delighted that Alliance has been able to so quickly use MEDICOMP to manage the complex administrative functions of a Managed Care Organization."

Alliance Physician Services was formed in 1996 by Hillcrest Physicians Medical Group and Santa Rosa Memorial Hospital to reassert provider influence over the local health care delivery system. The organization is a state-of-art, cost-effective Managed Care Organization (MCO) that offers administrative services to the physicians of Hillcrest IPA of Petaluma, Calif. These services include contract management, claim administration, customer service and utilization management, among others. For more information, call 707/522-1980.

Physmark, Inc. is a software and services company that exclusively addresses the data management needs of managed care organizations. A pioneer in the industry, the company is the leading provider of information systems for integrated health care delivery organizations, such as Physician Hospital Organizations (PHOs), Management Service Organizations (MSOs) and Independent Practice Associations (IPAs). Physmark's MEDICOMP software is based on Oracle(R) Corporation's relational database system and runs on Novell, Windows NT and Sun Microsystems' platforms, among others. Corporate headquarters are in Dallas; additional offices are located in Denver and Albuquerque. For more information on Physmark, Inc. call 505/897-7500 or visit Physmark at http://www.physmark.com . -0-

Note to Editors: Oracle(R) is a registered trademark of Oracle Corporation (NASDAQ: ORCL). Novell is a registered trademark of Novell, Inc. (NASDAQ: NOVL). Windows NT is a registered trademark of Microsoft Corp. (NASDAQ: MSFT). Sun is a registered trademark of Sun Microsystems, Inc. (NASDAQ: SUNW.)

CONTACT: Physmark

Jacob Kuriyan, 505/897-7500

or

Alliance Physician Services

Stephanie Olivier, 707/522-1980