California Selects MEDSTAT for Health Information Management System.

Business & Health/Medical Editors

ANN ARBOR, Mich.--(BW HealthWire)--June 5, 2001

The MEDSTAT Group, a Thomson Company, announced today that the California Department of Health Services has extended for three years its license agreement for MEDSTAT decision support and executive information systems.

The MEDSTAT solution helps the state ensure that its benefit programs are cost effective and provide high quality care to Medi-Cal beneficiaries.

"MEDSTAT continues to provide the decision support system and healthcare analytic expertise we need to better manage the healthcare provided to our more than 5 million beneficiaries," said Frank DeBernardi, chief of the state's management information and decision support system project. "The MEDSTAT system has been used to identify millions in annual cost savings, validate our beneficiaries' health assessments, and monitor the effectiveness of various quality initiatives."

Medi-Cal has been using MEDSTAT health information solutions since 1997. The Medi-Cal data warehouse is one of the largest health information databases ever constructed, incorporating more than 750 million records from several disparate sources including eligibility and provider data, fee-for-service claims, managed care encounters, mental health and child health and disability prevention data. The recently completed five-phase data warehouse development project was one of the most successful large-scale information technology projects undertaken by the state.

Among the state's original objectives for the project was to establish a comprehensive information system for managing capitated plans. "The volume and quality of the encounter data submitted by managed care organizations have improved significantly since the implementation of the decision support system," noted Barry Handon, M.D., M.P.H., acting chief of the Division of Managed Care's Quality Improvement Branch.

Under this contract extension, MEDSTAT will incorporate additional historical data within the data warehouse and provide access for an additional 50 executives and analysts who use the system in day-to-day decision making. The contract also includes education and training support services for the state's users.

"We're proud of our long-term relationship with the California Department of Health Services, the country's largest state health program," said Shelby Solomon, senior vice president and general manager, MEDSTAT. "Our work with Medi-Cal demonstrates the value of developing a robust health information system that supports the ongoing management of the cost, quality, and access to health services for a large group of beneficiaries."

The MEDSTAT Group (www.medstat.com) is a health information company that provides decision support systems, market intelligence, benchmark databases, and research for managing the purchase, administration, and delivery of health services and benefits. It serves more than 1,000 organizations including many of the nation's leading employers, providers, pharmaceutical companies, government organizations, and health plans and insurance companies. Headquartered in Ann Arbor, Mich., MEDSTAT has a 20-year track record of delivering results for customers through innovative products, superior customer service, and outstanding people. MEDSTAT is part of The Thomson Corporation (www.thomson.com), a global e-information and solutions company in the business and professional marketplace with 2000 revenues of approximately US$6.0 billion. The company's common shares are listed on the Toronto and London stock exchanges (TSE:TOC).