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Technology Stocks : Healtheon - The next Netscape (Fortune Sept. 9 1998)
HLTH 0.1200.0%Sep 10 5:00 PM EST
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To: Nicholas Thompson who wrote (18)1/20/1999 9:29:00 PM
From: sand wedge   of 48
 
Nicholas,

I have to disagree with you for at least two reasons

1)HMO's and healthcare providers typically contract with state governments, administering their Medicare/medicade programs. There are significant penalties for not processing claims in a timely manner. These penalties accure to the tune of millions of dollars a year. These companies have tried to install systems which automate the flow of claims but they have had less then stellar results.

2)The healthcare industry has gotten very crowded and VERY competitive. Smart companies will look for ways to streamline the historically horrendous customer experience of initiating and tracking claims. When all the players in the game are offering essentially the same goods and services, customer satisfaction is the great tie breaker.

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