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MEDPOWER LAUNCHES REVOLUTIONARY HEALTHCARE INFORMATION MANAGEMENT SYSTEM PROJECT APPLIES NEW AGE TECHNOLOGY AND MANAGEMENT TO HEALTHCARE

 MINNEAPOLIS, March 1 /PRNewswire/ -- MedPower, Inc. a Minneapolis- based information management company, today introduced an integrated healthcare information management, decision support and payment system designed to reduce administrative costs by 35 to 50 percent at every point of the healthcare delivery system when fully implemented. MedPower announced that it will begin a six month demonstration program in April, partnering with several employers. Tandem Computers, Inc., will be a technology partner for the project.
 MedPower's state-of-the-art system, which is patented, promises to dramatically improve the efficiency of transporting clinical and financial information for ambulatory healthcare transactions. When fully implemented, the system will provide healthcare experts with more timely and higher quality data that allow them to make comparative cost decisions, evaluate quality of care and outcomes, and analyze the value of services rendered.
 According to the U.S. Industrial Outlook for 1993 for Health and Medical Services, expenditures on healthcare in the United States are expected to rise 12.1 percent to $939.9 billion in 1993. These expenditures will continue to rise unless significant changes in managing the healthcare system occur.
 "MedPower takes direct aim at displacing the unnecessary administrative costs that affect the affordability of healthcare and have no impact on the wellness of Americans," said Frank Partel, chief operating officer of MedPower.
 "An electronic flow of healthcare information will be created -- significantly reducing the massive quantity of paper currently clogging the arteries of America's healthcare system," said Partel. "The MedPower system could save an estimated $36 billion of wasted healthcare dollars for Fortune 500 Industrial and Service companies alone."
 Through the application of emerging electronic data interchange (EDI) technology, the MedPower information system will link healthcare provider organizations, health insurers, Medicare and Medicaid administrative agencies and employers. The MedPower program represents the first fully integrated initiative -- and the most ambitious effort by U.S. business to date -- aimed at squeezing costs out of the ambulatory segment of the healthcare system.
 How the MedPower System Works
 The MedPower system is comparable to a retail transaction. A patient receives service from a healthcare provider and all subsequent transactions necessary for payment are managed electronically. The system will reduce treatment-to-payment cycle times from weeks to days by eliminating redundant, manual data entry; displacing unnecessary human intervention and by electronic payment.
 Patients receive an ID card with a magnetic code that connects to the MedPower system. Comprehensive data on the patient's insurance eligibility and coverage may then be accessed at the time of medical treatment, including a summary of the insurance plan, permitted fee schedules, mandatory second opinion requirements, initial claim approval and more.
 After the medical service has been performed, the patient can support additional fraud controls, by authorizing the transaction through a PIN number. Once the PIN has been entered, the MedPower system electronically quality checks the data to eliminate claim rejection and submits the claim to each insurance administrator and/or insurance company involved. After review and authorization by the insurance company, the system will use electronic funds transfer, debit the appropriate accounts and directly transfer the correct payment amount into an account pre-selected by the provider.
 For employers, MedPower will help squeeze unnecessary costs out of benefits systems -- including redundant processing, fraud and coordination of benefits. Employers will also benefit from the timely, quality information the MedPower system provides and easy access to that information. MedPower estimates that employers may save as much as $150 to $200 per employee, per year in healthcare costs by using their system to reduce administrative overhead and to monitor the quality of provider groups more effectively.
 MedPower's Pilot Program -- Applying Technology to Reality
 MedPower's pilot project is scheduled to begin in April 1993. This test of the patented MedPower system will validate the first two (out of a total of five) software releases. Several employers have signed on with MedPower to test the healthcare information management system. Tandem Computers, Inc., is the technology partner for the project, supplying the processing equipment for the information system network.
 "The cost of healthcare in this country has gotten out of control," said Ed Van Pelt, senior vice president, marketing and sales at MedPower. "MedPower redistributes the healthcare dollar so a higher percentage goes toward the cost of care versus managing it. The companies that are joining MedPower in launching this system are dedicated to doing something about healthcare costs. It is a pleasure to work with such visionary companies, and we look forward to very long, successful partnerships with them."
 MedPower, Inc., is an innovator in healthcare information processing. The company was formed in 1991 by experts in applied technology to address cost containment, data analysis, administrative efficiency and standardization of data gathering for the healthcare industry. The company employs 25 people, with offices in Bloomington, Minn., and Princeton, N.J.
 -0- 3/1/93
 /CONTACT: Ed Van Pelt, senior vice president, sales and marketing of MedPower, Inc., 612-946-4600/


CO: MedPower, Inc. ST: Minnesota IN: HEA SU:

DS -- MN007 -- 1418 03/01/93 12:34 EST
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Date:Mar 1, 1993
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