CareInsite and Blue Cross Blue Shield of Massachusetts Announce Strategic Partnership
CareInsite Acquires Leading Physician E-Commerce Network from Blue Cross Blue Shield of Massachusetts
ELMWOOD PARK, N.J./BOSTON--(BUSINESS WIRE)--February 15, 2000-- Blue Cross Blue Shield of Massachusetts To Join
CareInsite's Healthcare Network
CareInsite, Inc. (NASDAQ: CARI), a subsidiary of Medical Manager Corporation (NASDAQ: MMGR), and Blue Cross Blue Shield of Massachusetts (BCBSMA) announced today that the two companies have entered into a comprehensive strategic relationship. CareInsite will purchase substantially all the assets of BCBSMA's Provider Technology Group (PTG) for a total of $70 million, $25 million of which is payable in cash and $45 million of which is payable in shares of CareInsite stock. Through PTG, BCBSMA operates a premier all-payer medical transaction processing network, linking more than 12,000 physicians with BCBSMA and most major insurance companies, government insurers, HMO's and PPO's in Massachusetts. Under a separate agreement, CareInsite will become the provider of Internet content and connectivity services for BCBSMA. The companies expect the transaction to close prior to the end of March 2000.
The agreement between BCBSMA and CareInsite marks a significant milestone for both organizations. BCBSMA will leverage the comprehensive technology of CareInsite, including clinical and administrative transaction capabilities, physician- and patient-centered Internet portal services, as well as unique content and messaging for physicians and plan members. Under this agreement, CareInsite and BCBSMA will introduce new, web-enabled services that are integrated into the clinical and administrative workflow of physicians' offices in the Massachusetts marketplace:
- In conjunction with BCBSMA, CareInsite will develop and implement
new referral and pre-certification capabilities, where services
will be authorized in real time by executing the appropriate
benefit plan rules electronically at the point of care. This will
save substantial time and reduce costs for physicians and health
plans, as well as simplify and improve patients' interactions
with BCBSMA.
- CareInsite will implement its prescription communications
services, which provide physicians with access to BCBSMA's
formularies, treatment guidelines, drug benefit plan rules, and
online, real time drug utilization review at the point of care.
- BCBSMA will also participate in CareInsite's patient-focused
Internet portal, which will help bring patient-physician
communication, and patient-health plan interaction capabilities,
such as online explanation of benefits, claims status checks, and
prescription renewals to the BCBSMA plan members.
- With BCBSMA as a key development partner, CareInsite will create
a new generation of online, real time medical claims adjudication
capabilities, which will dramatically streamline and accelerate
the claims and reimbursement processes for physicians and
patients alike.
William C. Van Faasen, CEO of BCBSMA, said, "We are delighted that we are in a position that as a company, we are building toward the future. Our partnership with CareInsite is essential to achieve our strategic goal of enhancing our relationship with providers and plan members. Since 1992, PTG's network has been providing physicians with electronic administrative transactions and patient medication histories. With the addition of CareInsite's managed care, clinical transaction, content, and messaging services, we will provide better information and support to the providers who care for our members.
Dr. William Winkenwerder is the head of Health Care Services at BCBSMA. "We at BCBSMA are very excited about this partnership with CareInsite. We regard the newly created company of CareInsite and Healtheon/Web MD as the premier player in the business of Internet-based health care transactions and services. With the addition of CareInsite's technology to our existing e-commerce capabilities, we will have the most advanced Internet health services capabilities anywhere. Doctors and patients will benefit tremendously."
The 40 BCBSMA associates who comprise the Provider Technology Group will join the CareInsite team. Commenting on this important new relationship, Marv Rich, CEO of CareInsite, said, "We welcome the PTG team to CareInsite and we are excited to begin working with BCBSMA. BCBSMA is a leading edge health care company that has built one of the nation's premier all-payer electronic transaction networks. BCBSMA, New England's largest insurer, is the right partner to help CareInsite bring an integrated, focused Internet capability to physicians and consumers in Massachusetts. Together, we will help improve the quality of care and eliminate administrative inefficiencies by delivering more comprehensive information at the most appropriate points of care." |
