CareMedic Perpetuates Strong Sales Momentum by Optimizing Medicare Secondary Claims Process.

Blended Services and Technology Offering, SecondaryGold[TM] Accounts for 50 percent of Q3 Sales

ST. PETERSBURG, Fla. -- CareMedic Systems, Inc., a leader in proactive financial management for hospitals and providers, is proud to mark the end of a strong 2007 third quarter highlighted by growth from new, large accounts and strong market adoption of its blended services and information technology offering, SecondaryGold[TM]. More than 50 percent of the company's third quarter sales were generated by this bundled offering designed to help providers optimize their revenue associated with secondary claims.

SecondaryGold combines the power of the company's AccelerateAR[TM] MedicareRT[TM] direct entry and Claims Management solutions with outsourced billing staff follow-up services to relieve hospitals from the tedium of working high volume, low dollar secondary claims. The customer pays CareMedic only a percentage of the secondary dollars collected.

"We're very pleased to report continued successes at CareMedic," said Sheila Schweitzer, the company's chairperson and chief executive officer. "We believe the market for blended technology and services will continue to grow and we have carefully positioned CareMedic to capitalize on that growth. SecondaryGold has a very compelling value proposition and its strong adoption rate this quarter signals healthcare organizations comprehend its tremendous benefits. With it, we are leveraging the strong market position of our transaction products by tying to them a transformational software/services packaging model to provide greater value to our customers. By alleviating the pain points of revenue cycle, we are improving our customers' operating and financial performance, as well as our own."

According to Schweitzer, CareMedic has completed a series of acquisitions in recent years to support its goal toward becoming a dominant provider of revenue cycle management solutions that enhance the customer's revenue cycle efficiency and organizational profitability. With the launch of SecondaryGold earlier this year, CareMedic is moving the company to a blended services and technology firm.

CareMedic's third quarter revenues also were marked by continued demand for the electronic Financial Record[TM] (eFR[TM]), the only solution available that connects information from disparate systems into a single patient financial record.

Samaritan Health Services, a Corvallis, Ore.-based health system, is one of several multi-facility customers to select CareMedic solutions in the third quarter. "We limited our search to proven solutions in the marketplace and concluded that CareMedic's document imaging and eFR fit the bill and more," said Dawnell Buell, director patient financial services, Samaritan Health Services. "A highly successful selling point was that in combination, these two solutions will give our staff across facilities enhanced, secure access to patient information from disparate legacy hospital systems to greatly improve workflow. It also will facilitate capturing accurate detail for each case, enabling us to automatically generate information for audit reporting. Those performance features, in combination with the savings we'll gain from reduced physical storage needs and ease of record accessibility, were very compelling."

Samaritan Health Services also plans to adopt CareMedic's newest offering, OptimizeAR[TM] Consolidated Payment Management (CPM). The system specifically addresses the unique challenges associated with converting paper-based payment data to electronic format and consolidating it with data received electronically. The system applies optical character recognition technology to automatically create electronic 835 remittance advices from paper explanation of benefits (EOBS).

"Using all of these integrated modules, we can incorporate data from multiple systems and automate time-consuming paper processes," added Buell. "We expect benefits ranging from more effective correspondence to quicker cash posting to more profitable operations, and I am also looking forward to the enhanced revenue reporting."

In other third quarter milestones, CareMedic's revenue cycle performance dashboard was a strong factor in winning deals with both existing and new customers. The dashboard, which provides analytics and key performance indicators to users at all levels, complements the company's four point-of-management solutions--MedicareRT, Claims Management, SecondaryGold and the eFR--and greatly enhances an organization's ability to make informed decisions and generate performance reports.

About CareMedic Systems

Founded in 1997, CareMedic Systems provides enabling technologies and outsourced services that move and manage critical data through the healthcare revenue cycle, ultimately improving cash flow and margins while reducing operational expenses. The company's fully integrated data management and workflow tools address revenue cycle activity from inception through claims resolution, and require manual intervention only when necessary. CareMedic is committed to consistently delivering results to its customers. For additional information, visit www.caremedic.com.