Per-Se Technologies Announces Acquisitions to Expand e-Health Solutions Offering.
ATLANTA--(BUSINESS WIRE)--May 1, 2001
Acquisitions Continue Focus on Revenue Optimization
Per-Se Technologies, Inc. (Nasdaq: PSTI), a leading provider of integrated business management outsourcing services, application software and Internet-enabled connectivity with business intelligence for healthcare providers, today announced the acquisition of two companies with technology solutions that work in tandem with The Per-Se Exchange, the nation's third largest electronic clearinghouse, and expand the functionality of Per-Se e-Health Solutions offering for the healthcare industry.
The addition of an automated remittance processing solution, which ensures accurate and efficient processing of cash collections, and a web-based, real-time eligibility verification solution, which ensures eligibility at the point-of-care, further enhance the Company's goal of providing solutions that promote revenue optimization through automation for healthcare provider and payer organizations.
The acquisition of Virtual Information Systems, Inc., based in Cleveland, Ohio, adds the leading functionality of their core product, Virtual Remittance Processing System (VRPS) to Per-Se's e-Health Solutions division. VRPS incorporates electronic remittance advices with an innovative OCR scanning solution and generic data entry capabilities, enabling all remittances (payments), whether from a payer, a patient or other source, to be captured in a central database. Remittances are then automatically posted to a healthcare organization's legacy patient financial management system. By automating the remittance process, VRPS provides greater accuracy in accounts receivable postings. Healthcare organizations using VRPS experience greater efficiency, resulting in reduced costs and improved cash flow.
"Due to declining reimbursement, healthcare organizations require more resources for payer follow up," stated William N. Dagher, President of Per-Se's e-Health Solutions division. "Virtual Remittance Processing System clients have realized up to a 40% reduction in processing staff upon implementing the system as well as a measurable reduction in both DSOs and efficiencies in processing secondary billings."
The acquisition of Officemed.com, based in Atlanta, Georgia, adds the functionality of real-time eligibility verification via the web to Per-Se's e-Health Solutions division. Officemed.com's web-based application service provider (ASP) solution, Real-Time Solution, gives healthcare and payer organizations the ability to perform secure, real-time benefits inquiries against patients' insurance plans. Using unique, web technologies and a state-of-the-art EDI system architecture, Officemed.com provides access to the largest payer list available on the Internet today with 80 active insurance payers covering 96 million lives or 40% of all insured lives in the U.S. Since Officemed.com offers secure, real-time access to insurance data, providers can use the solution to not only verify eligibility but to also initiate and check the status of patient referrals and track the status of claims previously submitted.
"It is estimated that a single eligibility verification or claims status inquiry made by phone costs providers and payers approximately $10 and $3, respectively," stated Dagher. "By using Internet-eligibility software, such as Real-Time Solutions, providers benefit by accessing eligibility information online, 24 hours a day, and payers benefit from a reduction in call center activity and costs associated with processing denied claims."
"The strategic addition of both Virtual Information Systems and Officemed.com to our e-Health Solutions division furthers our mission of providing full revenue cycle management connectivity tools to the healthcare industry," stated Philip M. Pead, Per-Se's President and Chief Executive Officer. "Senior management of both companies have a great deal of industry insight and will be a valuable asset for Per-Se to ensure both the integration of these unique products with Per-Se's existing offerings and to continue their growth in the marketplace."
The transactions, which closed on April 27th, had a combined cash purchase price of approximately $10 million for the assets and technology of both companies. On a 12-month basis, the acquisitions are expected to have proforma revenues of approximately $3.4 million. For the eight months during 2001 that the acquisitions will be part of Per-Se's e-Health Solutions division, the combined acquisitions are expected to be neutral to slightly accretive to cash flow and earnings, after goodwill amortization.
About Virtual Information Systems, Inc.
Virtual Information Systems, Inc., a privately held company headquartered in Cleveland, Ohio, is a leading provider of healthcare business office automation systems. With the sole purpose of helping hospitals and integrated healthcare delivery networks solve their dependency on manual processes in their business offices, Virtual Information Systems solutions capture, process, reconcile, reproduce, manage, store and access vast amounts of financial patient information across the enterprise. Unlike other systems that have limited usage, a large number and variety of users use Virtual Information Systems solutions intensively, more so than any other system available today. As a result, the Company's clients, some of the largest and most respected healthcare provider systems in the country, are able to process, manage and deliver business office information more effectively than their competitors.
About Officemed.com, LLC
Officemed.com, LLC, a privately held company headquartered in Atlanta, GA, is an Internet application service provider specializing in the real-time delivery of healthcare insurance transactions to its customers. As one of the most experienced application service providers of web-based EDI transactions, Officemed.com is the market leader in supplying private-labeled applications for the processing of web-based real-time healthcare insurance transactions. Officemed.com's feature rich and fully functional Internet application allows the Company's business partners to supply access to healthcare insurance EDI and related transactions using the Internet, Intranets, or dial-up services. Officemed.com provides access to the largest payer list available on the Internet today.
About Per-Se Technologies, Inc.
Per-Se Technologies, Inc. [Nasdaq: PSTI] is a global leader in delivering comprehensive business management outsourcing services, financial and clinical software solutions, and Internet-enabled connectivity and e-health solutions. Per-Se Technologies enables integrated delivery systems and physician practices to optimize the quality of care delivered and profitability of business operations simultaneously. The leading provider of business management services to physicians, Per-Se supports 35,000 physicians and 2,000 healthcare organizations. Atlanta-based Per-Se processes more than 240 million medical transactions annually and its solutions manage 26 million patient lives online. Additional information is available at www.per-se.com.
Safe Harbor Statement
This Press Release contains statements that constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this Press Release include the intent, belief or current expectations of the Company and members of its management team with respect to the Company's future business operations as well as the assumptions upon which such statements are based. Forward-looking statements include specifically, but not limited to, revenue projections, profitability projections and cash flow projections. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those contemplated by the forward-looking statements in this Press Release include, but are not limited to, failure to realize improvements in performance, efficiency and profitability, failure to complete anticipated sales under negotiations, failure to complete transition, reorganization and restructuring projects or complete them within the timeframe projected, lack of revenue growth, client discontinuances and adverse developments with respect to the operation or performance of the Company's business units or the market price of its common stock. Additional factors that would cause actual results to differ materially from those contemplated within this Press Release can also be found in the Company's Safe Harbor Compliance Statement included in the Company's Form 10-K for the year ended December 31, 2000. The Company disclaims any responsibility to update any forward-looking statements.
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|Date:||May 1, 2001|
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