Macronetics Inc. Joins University of Maryland's MTECH Ventures Portfolio; Company's Software Helps Hospitals Reduce Billing Errors.

COLLEGE PARK, Md. -- Hospitals struggle with billing.

With nearly five percent of hospital bills containing major errors, according to a recent Consumer Reports survey, a third of hospitals in the U.S. are losing money every day and another third barely make ends meet, according to the American Hospital Association.

Macronetics Inc., a new company joining the University of Maryland's MTECH Ventures incubator, the Technology Advancement Program, helps hospitals with software that checks bills for errors, automates and regulates clinical and financial processes, and offers real-time access to a health care organization's status.

"Our software, Automate Business Process Management, can help a hospital recoup up to five percent of its cash flow," said Macronetics Vice President Dick Coyne. "That money is often tied up in complex internal billing processes or in claims returned due to errors. We can break up much of that cycle and get those funds working for the hospital and its customers."

Already deployed in other segments by customers such as Legg Mason, the City of Rochester, N.Y., and Raris Communications, Automate BPM translates business rules into software workflows. Those workflows can tie together different computing systems, integrate processes across an entire organization into one central dashboard, and perform sophisticated error-checking tasks.

The net result is a business that is more organized, more accurate, and has instant access to its information.

For hospitals, that also translates to better clinical performance.

"Payers like Medicare provide payment incentives for better health outcomes," said Coyne. "Automate BPM helps a hospital manage the clinical process--from registration to discharge and follow-up care--to make sure the right steps are taken. That translates to greater chances for good health outcomes. Everyone wins--patients, families, hospitals, and payers--when the quality of care improves."

Macronetics' software differs from competing products offered by IBM and BEA Systems on two fronts: its approach to processes and its ease of customization.

"Our software's approach to workflow management is top-down," said President Terry Wolters. "Users simply specify an end goal, then fill in the tasks needed to meet it. Competing products build complex layers of tasks first--adding months to development time."

Automate BPM is also easy to customize, even after deployment, said Wolters. "IBM and BEA charge hefty consulting fees to make changes to systems after they're built," he explained. "Our customers are trained within days to modify their systems themselves."

The City of Rochester uses Automate BPM to track building maintenance and actions in the mayor's office. Atlanta-based Raris uses it for help-desk tracking.

Legg Mason employs Automate BPM to track reports for investors; the company is also building a firm-wide, service-oriented central dashboard based upon Macronetics' platform.

Dr. Vinh Nguyen, chief executive office of Macronetics, designed the company's software platform through patent-pending algorithms. The product was released in late 2004, and was approved for customer deployment beginning in mid-2005.

Macronetics is joining MTECH Ventures' portfolio to work with the organization's expert business development team, as well as to collaborate with faculty and students. Wolters cited the credibility passing MTECH Ventures' rigorous review process gives to his company.

"Macronetics has an innovative solution to business process management," said Sarah Djamshidi, associate director of the Technology Advancement Program. "They are focusing on a high-potential niche, and have put together a talented team."

About MTECH Ventures (www.mtechventures.umd.edu)

MTECH Ventures, part of the University of Maryland's A. James Clark School of Engineering, delivers a portfolio of services and resources to entrepreneurs committed to bridging the gap between technical ideas and viable ventures. MTECH Ventures also provides entrepreneurship education to technology creators.

About Macronetics Inc. (www.macronetics.com)

Macronetics Inc. is a provider of enterprise productivity solutions to help customers maximize their business performance and enhance their ability to respond quickly to changes in the marketplace.