The MEDSTAT Group Expands Business in Multiple Markets.

ANN ARBOR, Mich.--(BW HealthWire)--Sept. 21, 1998--The MEDSTAT Group, a leading healthcare information company, has recently signed several new contracts with healthcare purchasers, government agencies, managed care and insurance organizations, and healthcare providers.

"We're very pleased to broaden our client base and support an increasing number of healthcare decision-makers," said Laurence J. Hagerty, President and CEO of The MEDSTAT Group. "The exciting new products and services we are developing are attracting forward-thinking organizations from a variety of industries and locations across the country."

The MEDSTAT Group's new InforumOnline service, which provides on-line information and networking opportunities for planning, marketing, and managing healthcare delivery, has attracted a number of health plans and hospitals to MEDSTAT. "This is a first-of-its-kind Internet product," said Hagerty. "We and our customers are both excited about leveraging today's technology for faster, more efficient healthcare decisions."

The following organizations have signed agreements to purchase InforumOnline services: -0-

  -- Saint Louis University Health Plan
  -- Arkansas Children's Hospital
  -- Washington Hospital
  -- Memorial Hospital of Chattanooga
  -- Chester County
  -- Rush Prudential Health Plan

In the state Medicaid arena, MEDSTAT has made several new sales and contract renewals for data management, decision support products, and Medicaid Managed Care Information Services. "Our government services products have made an increasingly significant impact on the market," said Hagerty. "Medicaid agencies are using our information services to better manage their increasing use of managed care to improve quality and access to care." The following government organizations recently signed agreements to purchase one or more MEDSTAT products or services: -0-

  -- Missouri Division of Medical Services
  -- Michigan Department of Community Health
  -- Georgia Department of Medical Assistance
  -- Nebraska Department of Social Services

Healthcare purchasers have also benefited from MEDSTAT's strategic information services. The Michigan Education Special Services Association (MESSA) recently signed an agreement to purchase MEDSTAT Clinical Performance Manager(TM) (CPM) Workstation, a clinically relevant and outcomes-focused tool for managing the quality and value of healthcare. "MESSA has been a pioneer in the development of utilization review, health education, and disease management programs for Michigan public school employees," said Hagerty. "Since 1989, MESSA has relied on our products to support their decision making. Now, we will both go one step further by using CPM to play a major role in the implementation of their new disease management program."

Health and Productivity Management(SM) (HPM) has also been a major factor in MEDSTAT's popularity with healthcare purchasers. Lucent Technologies has agreed to purchase this enterprise-wide information solution for managing healthcare, workers' compensation, disability, absenteeism, and employee turnover. "HPM is the next generation of outcomes measurement, cost management, and productivity improvement solutions for employers," said Hagerty. "This leading-edge information service can help companies identify bottom-line savings opportunities of over 30 percent."

The MEDSTAT Group's research and policy unit has expanded its services to a number of pharmaceutical and healthcare organizations, including: -0-

  -- Pharmacia Upjohn
  -- Uniformed Services University
  -- Wellmark (BCBS of Iowa)
  -- Access Health
  -- Health Enhancement Research Organization
  -- Otsuka Pharmaceuticals
  -- Pacific Business Group on Health
  -- Lilly
  -- Schering

"Our research staff conduct focused clinical and pharmaceutical studies and provide healthcare research services to organizations nationwide," Hagerty explained. "Our MarketScan(R) databases, which represent national healthcare experience and provide valuable benchmarks and norms, are often one of the information resources used by our research staff."

The MEDSTAT Group has also made strides with information products that appeal to both managed care organizations and providers. "We offer a variety of products and services that touch managed care organizations and providers of healthcare, including independent surveys that measure health plan performance from the perspective of consumers, physicians, and purchasers; data repositories with built-in decision support capabilities; and modular systems for the full range of contract management, quality improvement, and marketing activities," said Hagerty.

The following organizations have recently purchased MEDSTAT Quality Catalyst(TM) reports, which provide market-specific results of plan performance surveys: -0-

  -- Oxford Health Plans, Inc.
  -- Blue Cross and Blue Shield of New Jersey, Inc.
  -- Baptist Memorial Health Care
  -- QualChoice Health Plan
  -- Blue Cross and Blue Shield of Illinois, Inc.
  -- The National Medical Association

The following health plans and hospitals have purchased one or more products from the modular Inforum(TM) and Ascent(R) lines, which contain tools for healthcare planning and marketing, contract management, and quality evaluation and improvement: -0-

  -- University Hospital Augusta
  -- Dana Farber
  -- Baptist Louisville
  -- Memorial Hospital of Chattanooga
  -- Floyd Medical Center
  -- Aegis North Carolina Baptist
  -- Porter Memorial Hospital
  -- Mercy Healthcare
  -- Providence Hospital

Finally, six managed care clients have renewed their licenses of DataScan(R), MEDSTAT's long-standing decision support system for managing healthcare across all treatment settings. These clients include: -0-

  -- Blue Cross of Northeastern Pennsylvania
  -- Capital Blue Cross
  -- Employers Insurance of Wasau
  -- Great-West Life & Annuity Insurance Corporation
  -- Highmark Blue Cross Blue Shield
  -- UniCARE Life & Health Insurance Company

The MEDSTAT Group specializes in the strategic application of healthcare information and offers information bases, knowledge-based systems, research, and consulting services for improving the quality and total value of healthcare. Headquartered in Ann Arbor, Michigan, with offices nationwide, the company serves clients across the entire healthcare spectrum -- purchasers of healthcare benefits, providers of care, managed care and insurance organizations, state government, federal policymakers, and federal and pharmaceutical researchers. The MEDSTAT Group is a Thomson Healthcare Information company.