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EMC CLEARINGHOUSES FORM ASSOCIATION, SEEK OPEN MARKETS AND INCENTIVES FOR INNOVATION

 SCOTTSDALE, Ariz., Jan. 5 /PRNewswire/ -- The electronic medical claims industry took a major step in establishing itself as a political force and health care leader, when 11 prominent corporations formed the Association for Electronic Healthcare Transactions.
 The formal announcement was made by Jim H. Houtz, chairman and chief executive officer of CyData Inc., a wholly owned subsidiary of CyCare Systems Inc. (NYSE: CYS) at the second annual conference on Automated Medical Payments sponsored by Faulkner and Gray in San Francisco on Dec. 11, 1992.
 The 11 initial members, which will comprise the board of directors, include CyData Inc., Cooperative Health Networks (CHN), CIS Technologies Inc., GTE Health Systems, Health Information Technologies (HIT), Physician Practice Management (PPM), National Electronic Information Corp. (NEIC), Ameritech Information Systems (AIS), Wellmark, National Data Corp. (NDC) and United Healthcare Corp.
 Houtz of CyData, Joseph Bigley of CHN and Jeanne Schulte Scott of CIS Technologies were voted chairman, vice chairman and secretary/treasurer, respectively.
 According to Houtz, "Our mission is to take a leadership role to ensure that the electronic data interchange (EDI) health care industry remains open for competition to all vendors. We will focus on getting the legislature or the executive branch to establish a system that opens the door to innovation, encourages competition in the private sector, and avoids the monopolization of health care transactions."
 To achieve its mission, Houtz said the charter members of the association voted to pursue four initial objectives:
 -- Provide information to the public, regulators and legislators about the function and value of health care electronic clearinghouses;
 -- Promote administrative simplification and cost management in the delivery of health care;
 -- Promote industry (ANSI) standards for data and performance; and
 -- Promote open markets and encourage cooperation among various related industry constituencies in order to facilitate electronic connectivity between health care providers, insurers and other participants in the delivery of health care.
 The association's board plans to meet on Jan. 19, in Scottsdale to develop initiatives to achieve these objectives and establish a membership recruitment program.
 Any company involved in the health care EDI industry is welcome to join the association, regardless of size, ownership, geography or area of functional specialty. Inquiries about the Association for Electronic Health Care Transactions should be directed to Houtz at 602-596-4300.
 CyData Inc., headquartered in Scottsdale, is the nation's largest independent claims clearinghouse, processing more than 2.5 million physician claims each month. It offers the latest and most efficient method of procession and submitting claims for health care providers.
 -0- 1/5/93
 /CONTACT: Kathy Schauer, director-Corporate Marketing of CyData, 602-596-4370/
 (CYS)


CO: CyCare Systems Inc.; CyData Inc.; Association for Electronic
 Healthcare Transactions ST: Arizona IN: HEA SU:


MS-KJ -- LA003 -- 1557 01/05/93 08:55 EST
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Date:Jan 5, 1993
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