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BANC ONE COMPLETES ACQUISITION OF CROGHAN AND ASSOCIATES

 COLUMBUS, Ohio, Jan. 3 /PRNewswire/ -- Banc One Corporation (NYSE: ONE) announced today that it has completed the acquisition of Croghan & Associates, Inc., headquartered in Boulder, Colo. Croghan & Associates is a data processing company, specializing in the development and delivery of medical payment services and related electronic data interchange services. The Federal Reserve Board approved the acquisition on Dec. 22, 1993.
 Croghan & Associates was founded in 1991 to devise a technological solution to the problem of the escalating costs of administering the processing of medical claims and payments in the United States. Croghan has developed both the software and system to provide a low-cost, seamless medical payment system that will be convenient and efficient for consumers and physicians, as well as employers, insurers, and other participants in the health care system such as hospitals, and managed- care networks.
 Simultaneously, Banc One has been looking for ways to leverage its expertise in processing credit and debit card transactions and providing electronic data interchange services.
 Croghan and Associates will change its name to System One Corporation, and as a Banc One subsidiary will leverage the strengths of both organizations in the delivery of a fully integrated, automated health claim and payment system. In the System One network, members would be provided with a medical magnetic-stripe card which would be presented at the point of service. The card would access information on member eligibility, co-payments and deductibles. At the conclusion of the service, claim information would be electronically transmitted directly to the member's insurer for adjudication by the insurer or System One and payments would be authorized and executed through an electronic transfer of funds. Other applications in support of health care cost management include an electronic data interchange system which will allow customers to compile custom reports that contain summary and statistical analyses of their medical claims and payment data.
 System One's concept addresses one of the key elements of President Clinton's health care proposal, the need for electronic "ATM like" networks for the payment of medical claims and the creation of national standards for the transmission of medical claim and payment data.
 System One currently provides claims processing and plan management services to five managed-care organizations which include over 6,000 health-care providers and one large indemnity insurance company.
 Raymond D. Croghan, founder of Croghan & Associates, said, "Our affiliation with Banc One will provide us with a tremendous advantage in expanding our network throughout the nation and the health care industry. We can take advantage of an extensive national electronic payment network Banc One already has in place." Croghan will continue as president of System One.
 Frederick L. Cullen, chief financial officer of Banc One and chairman of System One, said, "This is a great opportunity for Banc One to extend its electronic payment systems into the health care market at a most critical time in its restructuring. We have many of the necessary tools in place that will be needed to streamline the industry."
 Banc One Corporation had assets of $76.5 billion as of Sept. 30, 1993, and common equity of $6.5 billion. Banc One operates 82 banks with 1,331 offices in Arizona, California, Colorado, Illinois, Indiana, Kentucky, Michigan, Ohio, Oklahoma, Texas, Utah, West Virginia and Wisconsin. Banc One Corporation also operates several additional corporations that engage in data processing, venture capital, investment and merchant banking, trust, brokerage, investment management, equipment leasing, mortgage banking, consumer finance and insurance.
 -0- 1/3/94
 /CONTACT: John A. Russell of Banc One, 614-248-5989, or Raymond D. Croghan of System One Corporation, 303-786-9951/
 (ONE)


CO: Banc One Corporation; Croghan & Associates, Inc. ST: Ohio, Colorado IN: FIN CPR SU: TNM

BM-CM -- CL019 -- 8565 01/03/94 14:48 EST
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Publication:PR Newswire
Date:Jan 3, 1994
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