Study Indicates CyberCare's Telehealth Delivery Methods Reduce Healthcare Costs.

Business Editors/Health & Medical Writers

BOYNTON BEACH, Fla.--(BW HealthWire)--Dec. 19, 2001

CyberCare Reports Final Results of Florida Medicaid Pilot Program,

Showing Significant Reductions in Hospital and Emergency Room Visits

CyberCare, Inc. (Nasdaq:CYBR) announced the completion of a year-long pilot program with the Florida Agency for Health Care Administration (AHCA) in which the CyberCare System(TM) was utilized to remotely monitor Medicaid patients suffering from chronic obstructive pulmonary disease (COPD). Based on financial and claims data collected and outcome indicators identified by AHCA, overall patients participating in the study experienced a reduction in healthcare claims and hospital and emergency room visits. The results of the study will be published shortly.

The pilot utilized CyberCare's Electronic HouseCall(R) (EHC(TM)) family of products for a baseline group of 21 COPD patients for a period of six months. Results were compared with three years of historical data for the patients studied. The overall cost of healthcare claims was reduced by approximately 30 percent. Overall claims decreased while pharmacy claims increased, which may have been the result of increased patient medication compliance and information available to caregivers. Providers were prompted to treat patients through more aggressive means knowing information was readily available on patient progress. While CyberCare believes the results of the program are significant, due to the small sample size results may not be reflective of the full potential of the EHC system.

"These results are very encouraging, indicating reductions in claims, utilization and improvements in patient factors, while maintaining a very high patient acceptance," said Michael Lemnitzer, vice president of business development at CyberCare. "This pilot project demonstrates that telehealth delivery systems should be part of an integrated healthcare solution."

The number of patient claims during the pilot study were reduced by 24 percent. The findings supported that the average claim per patient per month for the enrolled group fell to $1,207, from $1,686.

Additionally, there was a 42 percent decline in hospital admissions during the enrolled time versus their non-enrolled time. Similarly, emergency room visits were reduced by 66% during the enrolled period. The study is further encouraging since COPD is overall the 10th most frequent reason for hospitalization and accounts for over 565,000 discharges annually in the United States, according to Healthcare Cost and Utilization Project Fact Book No. 1, Hospitalization in the United States, 1997.

The project had a net cost to the State of $5,235 however the utilization trends indicated that longer-term use and a larger patient population to allow for more efficient resource of capacity would show significant savings.

"The effectiveness of telehealth appears to be demonstrated with this pilot project," said Bob Sharpe, Deputy Secretary for Medicaid with Florida's Agency for Health Care Administration. "The acceptance of these types of innovative healthcare delivery solutions may not only benefit the patients, but also those financially responsible for the cost of healthcare.

Of the enrolled patients, the majority of opinions about telehealth were positive and the discharge results indicated a strong reinforcement of those attitudes. The study evaluated patients using the EHC system for six months and examined the costs of each patient's healthcare services during that time frame. Patients received telehomecare visits using an EHC patient module, which consisted of a specially designed multimedia PC with videoconferencing, a touch screen user interface and attached medical devices, such as blood pressure and pulse, pulse oximeter, thermometer and stethoscope. While enrolled, the patients received regular video visits by healthcare professionals in addition to regular healthcare services. The patient module included two-way interactive video and voice technology to allow electronic face-to-face meetings with a nurse or doctor for scheduled checkups or other concerns, all with 24-hour access.

About CyberCare, Inc.

CyberCare, Inc. is a network-based telehealth solutions company improving the delivery of care through its Internet-based technology. CyberCare creates a live, interactive community that incorporates all members of the care team in the healthcare delivery process, resulting in cost reduction and improvement in the quality of patient care. Utilizing patented technology for remote monitoring and real-time interactive communications between chronically ill patients and their providers, CyberCare's Electronic HouseCall(R) System allows for effective and efficient data collection, case management and personal interaction. Headquartered in Boynton Beach, Fla., CyberCare also has physical, occupational and speech therapy businesses and an institutional pharmacy business. Visit CyberCare's Web site at http://www.cybercare.net.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, product acceptance and effectiveness, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.