Landmark Healthcare Tackles Fraud and Abuse; New Prevention/Detection Product Takes Industry to Next Echelon.

SACRAMENTO, Calif.--(BW HealthWire)--July 10, 1997--Landmark Healthcare, Inc., a California corporation, has announced a new program designed to combat health care fraud, abuse and operating impropriety.

In response to growing concerns across the country about fraud in health care and its threat to the integrity of the industry, Landmark is launching an industry-wide, national program that brings control efforts to the forefront of the minds of industry leaders. Landmark's wholly owned subsidiary, IntegriNet, offers a broad spectrum of prevention and investigative services to deal specifically with workers' compensation and third party liability/personal injury fraud cases.

Additional programs are under development to fully address all lines of business in health care services and to restore a confidence level within the industry and among the public.

"This action is vitally necessary if health care is to advance to the next echelon in delivering quality care," noted Landmark's Chief Executive Officer, Marla Orth. "The highly personal nature of health care and the implied trust that exists between all parties begs that ongoing attention be directed toward ethics in health care."

Based on 1994 insurance claims data, over $53.6 billion was lost nationally to various forms of health care fraud. California alone lost $8 billion with a cost per family estimated at $650 per year.

Landmark takes the lead in what appears to be the first industry-specific program of this type to (1) ensure that all facets of health care are examined and, (2) emphasize the value and integrity of complementary alternative care therapies and that such therapies and treatments are equally respected and trusted. Indeed, no sector of the industry is immune to fraudulent breaches.

IntegriNet's strategic alliance with Cannon Street, Inc., a specialized fraud and investigative concern based in San Francisco, provides the foundation for this unique program. Cannon Street has access to over 7,500 investigators nationwide who provide investigative services to corporations, financial institutions, law firms, insurance companies, regulators and other organizations.

Historically, insurers and regulators have had limited success in criminal or civil cases due to their reliance upon general investigators with minimal training or background in health care. Now, Cannon Street's elite, trained corps coupled with IntegriNet's innovative program offers health care industry-specific proprietary detection, surveillance and reporting techniques. The majority of the investigators are former FBI agents and other specialists trained in intelligence and information-gathering.

Richard W. Smith, Cannon Street's President and Chief Operating Officer said, "This is the first time that such a concerted effort has been made by any industry to clean up proactively rather than reactively." Clearly, the rate and level of sophistication of fraud justifies IntegriNet's new and more collaborative approach among industry leaders and investigative experts who are equipped to prevent, detect and manage cases of fraud and abuse.

IntegriNet's products and affiliates, IntegriComp and IntegriCare, are the culmination of many discussions with regulators, executives and providers who are frustrated by the growing case loads and increasing mistrust of the industry. Orth, a 23-year health care veteran who was trained as a regulator, designed the program in response to the unfortunate trend of malfeasance and deceptive practices.

"While this is somewhat of a departure from Landmark's traditional product menu, IntegriNet's services exemplify the next critical step for managed care to ensure quality by implementing measures and programs that instill the highest confidence level among consumers, payers and employers," Orth stated.

Landmark Healthcare, Inc. is a leader in the delivery of complementary alternative managed care products throughout the United States. Chiropractic and acupuncture programs for commercial, Medicare, workers' compensation and personal injury are delivered with scrupulous attention to medically-necessary and appropriate care. Landmark's commitment to the reduction of fraud is realized in its efforts through IntegriNet and also represented in its network development, credentialing and operational activities.

E-mail Landmark at: [e-mail] or visit Landmark's Web site at: http://www.LandmarkHealthcare.com .

CONTACT: Landmark Healthcare, Inc.

Lynette Lasell, 916/569-3325

Sheri Chow, 916/569-3326

Richard Smith, 415/391-0500