Passport Health Communications Offers Fraud Prevention Program; New Program Headed by Former HHS Inspector General Richard Kusserow.

Business Editors/Health & Medical Writers

FRANKLIN, Tenn.--(BUSINESS WIRE)--June 7, 2000

Passport Health Communications, Inc. and Government Management Services, Inc. have formed a partnership that enables providers to screen employees and vendors in an effort to reduce health care fraud. The screening product, called the Fraud and Abuse Control Information System or FACIS(R), will be offered through Passport OneSource(TM), the company's Internet-based health care business solutions product.

FACIS is designed and managed by former HHS Inspector General Richard P. Kusserow. Kusserow is nationally known as one of the leading authorities on corporate compliance programs. For 11 years he was responsible for criminal, civil and administrative enforcement in the health care industry. Today, Kusserow is President of FACIS, based in Alexandria, VA.

"We are excited to be offering a fraud prevention tool on our OneSource product. The goal for OneSource is to be a full-service product for health care administrators at every level," says Passport Chief Executive Officer Jim Lackey. "Richard Kusserow has been well-regarded in health care fraud prevention for years and we are impressed with the FACIS product."

"FACIS was looking for an Internet partner that has real credibility in the health care industry. Passport OneSource offers that credibility," says Kusserow.

FACIS is a web-based information service that screens the sanction history of individuals and entities in the health care field. FACIS was designed to assist organizations in identifying sanctioned individuals and entities in the health care arena. With over 300,000 records, FACIS reports on information from over 700 sources, including the U.S. Office of Inspector General and the General Services Administration. The product offers three levels of screening, ranging from a search of federal sources to a search of all 700 sources, to allow organizations to make different risk management decisions depending on the individual or entity. The information provided by FACIS aides health care organizations in avoiding the potential liabilities and risks associated with employing or contracting with individuals and entities that have a history of performance or behavioral problems.

Health care providers across the country are more attentive than ever over the Special Advisory Bulletin: The Effect of Exclusion from Participation in Federal Health Care Programs released by the U.S. Department of Health and Human Services Office of Inspector General in September 1999. The bulletin further highlights the health care fraud and abuse compliance guidelines and their enforcement by HHS. Many providers are analyzing their own methods of background checks on employees and vendors in an attempt to better comply with the new guidelines. HHS is actively urging providers to seek "quality compliance programs that promote a high level of ethical and lawful corporate conduct."

HHS has made it clear that federal funds are not to be used for non-compliant individuals and that harsh penalties could be imposed if the use of federal funds is discovered for excluded providers. This is a frightening time for providers as they attempt to navigate though the requirements the government has issued and better understand the tough penalties if any abuse or fraud is discovered - enforcement has picked up.

About Passport Health Communications, Inc.

Passport Health Communications, Inc., ( www.passporthealth.com ) is an Internet-based health care business solutions company that uses the Internet to supply time and cost savings applications to health care providers and hospitals. The time-critical information available through Passport is used to confirm patient eligibility, level of benefits, claims status and submission, provider panels as well as referrals and other essential administrative information. Through Passport OneSource ( www.passportonesource.com ), clients can access data from six of the country's top 10 health insurers and many Blue Cross Blue Shield plans via the Internet. The Company also has access to 34 state Medicaid databases. In 1999 Passport was presented with the Microsoft (Nasdaq:MSFT) Health Care Users Group award for best product in the Managed Care/Payer-Administrative/Financial Systems category.

About FACIS:

FACIS(R), offered by Government Management Services, Inc., was designed to assist organizations in identifying sanctioned individuals and entities in the health care arena. With over 300,000 records, FACIS reports on information from over 700 sources, including the U.S. Office of Inspector General and the General Services Administration. Available through www.facis.com, FACIS offers three levels of screening, ranging from a search of federal sources to a search of all 700 sources, to allow organizations to make different risk management decisions depending on the individual or entity. The information provided by FACIS aides health care organizations in avoiding the potential liabilities and risks associated with employing or contracting with individuals and entities that have a history of performance or behavioral problems.