FOR IMMEDIATE RELEASE
MEDIX RESOURCES NAMED IN
PUNK ZIEGEL & COMPANY REPORT
DENVER, June 21 / PRNewswire/ -- Medix Resources, Inc. (OTCBB:MDIX) announced its favorable review by ¡§Healthcare Web Watch¡¨, an industry analysis of developments and opportunities within iHealth, published periodically by Punk, Ziegel & Company (PZ). Punk, Ziegel, a New York based investment banking firm, has become increasingly specialized in emerging growth industries including iHealth. Led by healthcare IT analyst Michael Knepper, PZ has risen to a leadership position within the financial markets for analysis of the Internet as it applies to healthcare.
¡§Healthcare Web Watch¡¨, has identified Medix, through its wholly owned subsidiary Cymedix Lynx, Corporation, as a technological innovator and a company to watch in the anticipated healthcare communication revolution. Medix¡¦s unique software product platform, Cymedix.com, capitalizes on the development of Internet technology by creating Virtual Private Networks(VPN¡¦s) that securely transport patient medical, financial and administrative information between healthcare insurers and providers. Medix has been designated by PZ as the optimum transitional solution to immediately and inexpensively automate the paper intensive communication processes that currently inhibit efficiencies within the healthcare model.
Michael Knepper of Punk Ziegel states, ¡§By integrating to core legacy systems, Cymedix.com represents an intriguing and unique solution that minimizes the amount of change provider groups must bear when transitioning to an Internet transaction processing model. Healtheon (NASD: HLTH) and CareInsight (NASD:CARI) have also recently communicated with their compelling visions of iHealth. We think that online transaction processing is one of the more attractive and explosive opportunities within healthcare¡¨.
PZ has identified several components of Cymedix.com as instrumental to market acceptance and widespread product distribution:
„h No cost to the healthcare provider (physician).
„h Flexible, transaction based pricing model.
„h Universal integration with existing physician Practice Management Systems.
„h Rapid rollout capacity to in-network physician providers.
„h Capability of creating clinical information repositories.
„h Eliminates the necessity of network clearinghouses.
Excerpts from ¡§Healthcare Web Watch¡¨ include:
¡§Two to Watch. Abaton.com (private) and Medix Resources (MDIX: OTCBB) offer compelling solutions that can quickly create virtual private transaction networks using the public Internet. First and foremost, the solutions are typically free to the healthcare provider. The Companies¡¦ business models call for large sponsors such as payors and PBMs to pay per-transaction fees. Beyond the high-ROI benefits of EDI discussed earlier, the advantages to the sponsor include a fast rollout for in-network providers, the ability to create repositories of clinical content for its affiliates, and the elimination of network clearinghouses¡K.¡¨
¡§One key difference separates the two approaches, and both are likely to be very successful, in our opinion. The difference is that Abaton.com offers a thin-client solution that requires nearly zero implementation on the part of the Company (a clear plus). The barrier is that providers must be compelled to invest the time and effort (a scarce resource in today¡¦s managed care environment) to learn how to use the solution. Near term, many will and many won¡¦t, in our opinion. Ultimately, the thin-client approach will prevail as all information systems are migrated to the Web. The Medix solution, on the other hand, represents a compelling transitional solution. The solution circumvents the provider (a big plus) since the pre-existing thick-client, standalone practice management systems feed Medix¡¦s solution which, in turn, generates Internet (IP) transactions. Medix¡¦s software-based solution is capable of quickly integrating to any practice management system using the Company¡¦s proprietary data mapping tools and universal interface. It therefore does involve up-front implementation expense, which we expect to typically be paid by the sponsor.¡¨
Denver based Medix Resources, Inc. is engaged through its wholly owned subsidiary Cymedix Lynx Corporation of Thousand Oaks, California, in providing several fully secure patent-pending Internet medical communications products, using an E-commerce business model. Historically, the company¡¦s core business has been providing skilled nursing, therapy, rehabilitation and other medical personnel for flexible staffing in home care and in a broad spectrum of healthcare and educational facilities.
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The conclusions of PZ quoted above have been reached by that firm after its own independent analysis. However, those conclusions and other statements contained in this release which are not historical facts contain forward-looking information with respect to plans, projections and/or future performance of the Company, which may not occur and which involve certain material risks and uncertainties that are detailed in the Company¡¦s Form 10-KSB for 1998 that was filed with the SEC on April 12, 1999 and in the Company¡¦s Form 10-QSB for its 1999 first quarter that was filed with the SEC on May 17, 1999. Anyone considering an investment in the Company should review such documents, and the Company¡¦s Proxy Statement for its 1999 Annual Meeting, before making their investment decision. Such documents are available from the SEC or from the Company. Medix has been informed that employees and principals of PZ beneficially own no more than 30,000 shares of its common stock.
Company Contact: John P. Yeros Gene Martineau
303-741-2045 212-348-1880
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