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CYCARE SYSTEMS INC. CREATES CYDATA, A NEW SUBSIDIARY TO ATTACK HEALTH CARE COSTS

 CYCARE SYSTEMS INC. CREATES CYDATA,
 A NEW SUBSIDIARY TO ATTACK HEALTH CARE COSTS
 SCOTTSDALE, Ariz., Aug. 3 /PRNewswire/ -- CyCare Systems Inc. (NYSE: CYS) announced the creation of CyData Inc., a separate subsidiary, to drive the cost of health care administration as low as possible. CyData's mission is to serve as a claims processing utility for carriers, providers and vendors of practice management systems.
 Spurred by the federal government, the war on health care costs has begun. A key weapon in the war is electronic claims processing. It is estimated that nearly 25 percent of the nation's $770-billion- a-year health care bill is spent to process and pay health care claims. Electronic claims processing can save more than $8 billion a year, making it one of the greatest cost savings opportunities in health care today.
 Significant challenges lie ahead, since today less than 5 percent of the more than 4 billion health care claims submitted annually are processed and paid electronically. Because of the tremendous cost savings potential and the strong pressure from the government, there is increased momentum to replace today's paper-oriented processing system.
 Jim Houtz, CyCare chairman and chief executive officer, states, "There is a huge gap to fill. And over the next several years the demand to process claims electronically will far exceed the capabilities of the industry."
 CyCare's answer to this industry challenge is "CyData." In 1987, CyCare established its Claims Clearinghouse to add value to its billing systems and services. CyData's role is to take the benefits of the Clearinghouse beyond the current base of CyCare customers and to position the Clearinghouse as an important industry tool attacking health care's administrative costs.
 Houtz explains, "CyData's goal is to achieve a leadership in assisting providers to get 'out of the paper-pushing' business. CyData plans to accomplish this by building a claims processing network to service the needs of the industry."
 CyData has signed agreements to process electronic claims with a number of the largest vendors/dealers of practice management systems in the industry. Its customers include CyCare Systems, DataMedic, Wallaby and Wismer-Martin.
 CyData is the nation's largest independent Claims Clearinghouse processing more than 2.5 million physicians claims each month. It offers the latest and most efficient method of processing and submitting claims for health care providers.
 CyCare is one of the nation's leading providers of computerized information processing systems and services to the health care industry with more than 4,800 customers, including medical group practices, physician and dental practices and hospital-affiliated physician groups.
 Headquartered in Scottsdale, CyCare's sales and service centers are located in Atlanta; Chicago; Dallas; Detroit; Dubuque, Iowa; Houston; Long Island, N.Y.; Minneapolis; Portland, Ore.; San Antonio; San Diego; and Woodland Hills, Calif.
 -0- 8/3/92 R
 /CONTACT: Kathy Schauer of CyCare Systems, 602-596-4370/
 (CYS) CO: CyCare Systems Inc. ST: California IN: CPR HEA SU: PDT


EH-KJ -- LA006R -- 6390 08/03/92 18:33 EDT
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Publication:PR Newswire
Date:Aug 3, 1992
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