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SOFTNET SYSTEMS AGREES TO ACQUIRE MEDICAL COST CONTAINMENT FIRM

 HIGHLAND PARK, Ill., Oct. 28 /PRNewswire/ -- SoftNet Systems, Inc. (AMEX: SOF) today announced that it had entered into an agreement to acquire all of the issued and outstanding stock of Utilization Management Associates, Inc. ("UMA"), a Boston-based private company engaged in the medical cost containment business, for approximately 50,000 shares of SoftNet Systems common stock, options to purchase 125,000 shares of SoftNet Systems common stock, and future consideration based on performance. The consummation of the agreement is contingent upon, among other things, the listing of the SoftNet Systems shares to be issued, with the American Stock Exchange.
 UMA, which develops scientifically valid systems for identifying inefficient or avoidable hospital utilization, would add to SoftNet Systems' presence in the health care cost containment field. UMA's Managed Care Appropriateness Protocol(TM) (MCAP/TM/) is used by a growing number of HMO's PPO's, managed care indemnity insurers, and hospitals nationwide.
 MCAP's clinically valid screening criteria cover medical-surgical, obstetric, and pediatric cases, and, with its data collection and reporting software, may be used on a prospective, concurrent, or retrospective basis to lower the number of hospital days/1000 population and reduce the average length of hospital stay. MCAP's psychiatric criteria sets cover acute psychiatric, acute alcohol/substance abuse, and eating disorder cases.
 UMA's systems are supported by on-site user training and certification. Orientation and training sessions incorporate the key components of utilization management and address the role of nurse reviewers, case managers, physician advisors, and management in order to ensure results consistent with Continuous Quality Improvement and cost control objectives.
 UMA's client support and updating, which reflects on-going changes in clinical practice, results in a standardized and consistent decision making process and a common set of objectives across all disciplines.
 In addition to providing its MCAP systems, UMA, whose principals represent hospital utilization experience spanning more than twenty years, offers consulting services to evaluate existing and proposed utilization management programs. Consulting services include assessment of program structure and process, and medical record audits to identify rates and causes of inefficient utilization.
 SoftNet Systems is the exclusive licensee of Health Payment Review's CodeReview(R) software for use with Taft-Hartley multi-employer health and welfare funds in their audits of physicians' claims. Also, SoftNet Systems, in addition to its minority stock ownership in Imnet Systems, Inc., an Atlanta-based private company, is a nationwide distributor of Imnet's document imaging systems. These systems capture, store, display, and retrieve documents on magnetic or optical disks and microfilm; eliminating paper files. SoftNet Systems combines the CodeReview claims auditing system with Imnet's document imaging systems; providing a "paperless" environment in health claims processing.
 -0- 10/28/93
 /CONTACT: Alfred J. Ziegler, Vice President of SoftNet, 718-386-7631/
 (SOF)


CO: SoftNet Sys?, Inc. ST: Illinois IN: HEA SU: TNM

MP-RW -- NY040 -- 7840 10/28/93 11:13 EDT
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Publication:PR Newswire
Date:Oct 28, 1993
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