NEW YORK--(BUSINESS WIRE)--January 25, 2001--Medix Resources, Inc.
(AMEX: MXR) conducted its first telephonic presentation to the public
on the Company and the iHealth industry, Monday, January 22, 2000,
hosted by John R. Prufeta, Medix President and CEO.
For those who were unable to participate, there will be a replay
available from January 22, 2001 at 3:00 p.m. EST, through January 26,
2001 at 7:00 p.m. EST. The presentation is about 45 minutes long.
Please call:
1(888) 266-2081 (Domestic)
1(703) 925-2533 (International)
ID CODE: 4912752
The following are highlights of the call:
Current Customers and Partners
Mr. Prufeta reported that, "Over the last year, we have learned a
tremendous amount from our pilots. One very important finding is that
successful connectivity to physicians is predicated on providing
physicians with connections to the majority of their key business
partners, for example, health plans, PBMs and labs. As a result, we
are focusing geographically on building a critical mass of sponsors.
For example, in Atlanta Medix is working with physician organizations,
Integrated Delivery Networks and local insurers to expand connectivity
programs.
"A second finding was that we needed to develop a Web based
version for our transaction applications, which we have done for our
lab and PBM suites and which are now in deployment. The powerful
advantage for our Web-based products is that it gives physicians
access to these services independent of where they are physically
located so that Medix can be an enabling presence at the physician's
home, in the office, at the hospital...wherever.
"Third, we validated the value of our Universal Interface, and as
a result we developed a standalone version of the product, which we
are further leveraging by striking business alliances with companies
where we can collaborate in a multitude of ways. The next generation
of our UI will feature significant improvements that make the UI a
much more powerful tool. For example, to even further streamline
workflow in the physician's office, we are developing the ability for
the UI to automatically schedule when data is transferred from
physician systems to the Web or handheld device. Added features such
as this are a very strong value add for physicians. Most
significantly, we are developing the ability for the UI to update the
existing PMS. This gives us a two-way interface that opens up several
other potentially very lucrative applications and markets for the
technology."
Mr. Prufeta described the current status of five of the company's
current joint projects with Wellpoint, Kaiser Permanente of Georgia,
Loyola Hospital in Chicago, Advance PCS and Parkstone. He also noted
that Medix has signed two contracts that the company believes have the
potential to be very significant for it. However, Medix is not able to
disclose the contracts by agreement with those companies.
Pipeline
Mr. Prufeta further reported that, "Perhaps the most significant
progress in the last year has been in the development of our
distribution and strategic sales organization. As a result, our sales
pipeline has expanded significantly.
"We have many opportunities that we are currently pursuing. Today,
most of our sales activity with sponsor organizations is concentrated
in 17 significant managed care companies having aggregate memberships
of approximately 37 million lives in our key focus markets.
"The sales cycle to large health insurers is long - anywhere from
6-18 months. The good news is that since we enhanced our sales team
beginning in March 2000, our pipeline has grown dramatically, and we
are at the point where we expect contracts to be reaching their final
stages on a fairly regular basis. One major positive outcome of these
long sales cycles is that we believe that barriers to competition are
resultantly high. From both the payor and provider standpoint, once
you have proven yourself and are embedded into the workflow, history
has shown that these customers tend to stay with you for a very long
time.
"Since Medix sells to very large sponsor companies, every single
prospect in our pipeline is potentially meaningful. Anyone of these
could easily make a significant difference to our company.
"Keep in mind that signing a contract permits us to deploy to
sponsored physicians. Once we sign a contract, we rapidly move into a
development phase that includes establishing the interface connection
to the sponsor, tailoring the physician interface to the sponsor's
requirements, and incorporating the payor-specific rules on our
servers. Typically, this takes 90 days. The next phase is to deploy to
the physicians and to monitor the activity of the product. The pilot
stage will usually take at least another 90 days and, as we have seen
with our first three pilots, can be extended for reasons beyond our
control. Once we have reached certain milestones, we move out of the
pilot phase and into production. At this point, we begin to collect
transaction fees. As we move forward, we expect the initial technology
phase to shrink, and the pilot phase to disappear entirely. In fact,
in several of our discussions with new sales prospects, the plan is to
eliminate the pilot phase altogether.
"That being said, there will be situations where it is clearly in
Medix's interest to agree to an initial pilot with defined timelines
and transaction fees. For our first entree in a given market, this
gives us time to build the payor connections before we begin to be
measured against deployment milestones."
Financing
Mr. Prufeta said, "We are pursuing a two-pronged approach towards
financing -- with strategic as well as non-strategic prospective
investors. I'm not going to rehash what happened to our sector or the
financial markets in general last year. We all know too well. Despite
the fact that the appetite for investment has declined precipitously
since last spring, we remain focused and committed to raising
strategic capital and are pursuing several promising opportunities
jointly with UBS Warburg. In addition, we view institutional investors
and VC funds as important potential sources of capital for the Company
moving forward. As you know, we recently raised capital through a
private placement, which permits us to continue our operations for
several months. Our business plan calls for us to raise an additional
TEN MILLION dollars in capital to fund our ongoing operating
requirements into the first quarter of 2002.
"One last comment on financing. Our funding needs in absolute
terms are minimal relative to some of the enormous pools of capital
that have been raised and burned up in the healthcare technology
space. I believe that in the next 12-18 months it will become clear
that our products generate huge savings in money, time, and human
lives. Clearly, as we approach these objectives, financing for Medix
will become less and less of an issue."
Goals
Mr. Prufeta completed the presentation by setting forth his goals
for the company during 2001. He stated:
"First, we must attract one or more investors who can fund our
operations until we become profitable.
"Second, as mentioned, it is a top priority to convert our
existing pilot agreements into production contracts. By year-end, we
expect to have production agreements that are generating revenues for
the company.
"Third, we plan to contract with a critical mass of transaction
sponsors and physician installations in Northern California, Southern
California, Georgia, and the New York Metropolitan Area.
"Fourth, we expect to have at least 3 new distribution alliances
in place.
"I believe that if we achieve these goals, the value of our
technology will have been proven, our sales pipeline will be vast, our
currency will be strong, and our visibility on the Street and among
institutional investors will improve dramatically."
About Medix Resources, Inc.
Medix Resources, Inc. through its wholly owned subsidiary Cymedix
Lynx Corporation is the developer and provider of the Cymedix.com(R)
suite of fully-secure, patented Internet based software products, that
will allow instantaneous communication of high value added healthcare
information among doctor offices, hospitals, health management
organizations and insurance companies. Additional information about
Medix Resources and its products and services can be found by visiting
its Web sites, www.medixresources.com and www.cymedix.com, or by
calling (800) 326-8773.
Information in this press release contains forward-looking
statements that involve risks and uncertainties that might adversely
affect the Company's operating results in the future to a material
degree. Such risks and uncertainties include, without limitation, the
ability of the Company to raise capital to finance the development of
its software products, the effectiveness and the marketability of
those products, the ability of the Company to protect its proprietary
information, and the establishment of an efficient corporate operating
structure as the Company grows. These and other risks and
uncertainties are presented in detail in the Company's Form 10-KSB for
1999,and its Form 10-QSB for the third quarter of 2000, which were
filed with the Securities and Exchange Commission on March 30, 2000,
and November 14, 2000, respectively. This information is available
from the SEC or the Company.
This press release and prior releases are available on the
KCSA Public Relations Worldwide Web site at www.kcsa.com
CONTACT: Medix Resources, Inc.
John R. Prufeta, President and CEO
(212) 697-2509
(212) 681-9817 (fax)
jprufeta@cymedix.com
or
KCSA Investor Contacts:
Sarah Shepard / Elena Bonaiuto
(212) 896-1236 / (212) 896-1233
(212) 697-0910 (fax)
sshepard@kcsa.com / ebonaiuto@kcsa.com |
