ATLANTA, April 18, 2007 (PRIME NEWSWIRE) -- MedAvant Healthcare Solutions (MedAvant) (Nasdaq:PILL), a leader in healthcare technology and transaction services, today announced that it is expanding the directly contracted provider base of its National Preferred Provider Network (NPPN(tm)) by acquiring Louisiana direct contracts from the Universal Health Network.
Based in Reno, Nev., Universal operates primarily in Nevada. Its Louisiana network consists of 1,600 providers and 800 contracts which MedAvant has been leasing for about seven years for NPPN. The acquisition has closed, and because it does not include customer contracts or operations, MedAvant expects that integration costs will be minimal.
"This is a continuation of our plan to add direct provider relationships to NPPN where it makes the most sense for us and will complement our work with our valued affiliate partners. Direct contracts benefit everyone, so we are working diligently to sign new providers, and will continue to acquire other networks as appropriate," said John Lettko, MedAvant President and CEO. Providers benefit from direct contracts because they establish a more transparent relationship with the network. MedAvant benefits from direct contracts by building closer relationships with providers and offering additional products and services.
Providers join a Preferred Provider Organization such as NPPN and accept reduced reimbursement for services rendered in exchange for faster payments and more patients directed to their practice. Clients save money when a covered employee chooses a healthcare provider in NPPN. MedAvant generates revenue primarily on a percentage of clients' savings.
NPPN has more than 550,000 physicians, nearly 4,000 acute care facilities, and more than 90,000 ancillary care provider locations in all 50 states.
About MedAvant Healthcare Solutions
MedAvant provides information technology used to process transactions within the healthcare industry. MedAvant offers electronic claims processing to healthcare providers, a Preferred Provider Organization called the National Preferred Provider Network (NPPN(tm)), remote reporting solutions for medical laboratories, and electronic prescription delivery for pharmacies. To facilitate these services, MedAvant operates Phoenix(sm), a highly scalable platform which supports real-time connections between healthcare clients. For more information about MedAvant, please visit http://www.medavanthealth.com. MedAvant is a trade name of ProxyMed, Inc.
The MedAvant Healthcare Solutions logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3540
Forward Looking Statement
Statements in this release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions. Actual results could differ materially from projected results because of factors such as: the soundness of our business strategies relative to the perceived market opportunities; MedAvant's ability to successfully develop, market, sell, cross-sell, install and upgrade its clinical and financial transaction services and applications to current and new physicians, payers, medical laboratories and pharmacies; the ability to compete effectively on price and support services; MedAvant's ability and that of its business associates to perform satisfactorily under the terms of its contractual obligations, and to comply with various government rules regarding healthcare and patient privacy; entry into markets with vigorous competition, market acceptance of existing products and services, changes in licensing programs, product price discounts, delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels; the availability of competitive products or services; the continued ability to protect the company's intellectual property rights, implementation of operating cost structures that align with revenue growth; uninsured losses; adverse results in legal disputes resulting in liabilities; unanticipated tax liabilities; the effects of a natural disaster or other catastrophic event beyond our control that results in the destruction or disruption of any of our critical business or information technology systems. Any of these factors could cause the actual results to differ materially from the guidance given at this time. For further cautions about the risks of investing in MedAvant, we refer you to the documents MedAvant files from time to time with the Securities and Exchange Commission, including, without limitation, its most recently filed Annual Report on Form 10-K. MedAvant does not assume, and expressly disclaims, any obligation to update information contained in this document. Although this release may remain available on our website or elsewhere, its continued availability does not indicate that we are reaffirming or confirming any of the information contained herein.