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[LANDACORP LOGO]
EXHIBIT 20.1
News for Immediate Release
For more information contact: Jim Kann
Landacorp
404-531-9956
[email protected]
LANDACORP ACQUIRES PROMEDEX AND PATIENTCENTRIX
LANDACORP BECOMES A LEADING PROVIDER OF
POPULATION HEALTH MANAGEMENT SERVICES
ATLANTA, GA. (NOVEMBER 2, 2000) - Landacorp, Inc. (Nasdaq/NM: LCOR), a leading
provider of Internet- and Windows(R)-based medical management solutions, today
announced the acquisitions of Raleigh, NC-based ProMedex, Inc. and Montclair,
NJ-based PatientCentrix, Inc. (formerly Capitated Disease Management Services or
"CDMS"). The terms of both acquisitions were not disclosed.
ProMedex is among the largest providers of disease-specific intervention
programs in the United States with more than 500,000 patients under contract
from more than 20 million covered lives. ProMedex had revenues of $3.1 million
for fiscal year ended June 30, 2000. ProMedex's clients include Aetna U.S.
Healthcare, various Blue Cross/Blue Shield plans, One Health Plan (a
nationwide PPO), and other regional and community HMO's and health plans.
ProMedex offers programs for asthma, diabetes, pregnancy, cardiovascular
disease, allergy, and gastrointestinal disease. ProMedex currently serves about
4% of the country's pregnancies, provides diabetes program services to health
plans reaching approximately 130,000 people, and has contracts covering more
than 100,000 people with cardiovascular disease. ProMedex received the
prestigious 1999 HERA Award for its contributions to improving women and
children's health.
PatientCentrix is a leading provider of systems and software to profile,
target and automate disease management patient interventions based upon
predicted resource consumption. PatientCentrix had revenues of $3.1 million for
calendar year ended December 31, 1999. PatientCentrix's integrated software
solutions leverage technology to support disease modeling, risk prediction,
intervention strategy and workflow, and outcomes reporting. PatientCentrix
manages the medical, pharmacy and patient data for approximately 2.4 million
lives, and hosts more than one million lives as an application services provider
(ASP). PatientCentrix's clients include United Healthcare of Illinois and
Intergroup of Arizona, a division of Foundation Health Systems.
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Landacorp Acquires ProMedex and PatientCentrix
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November 2, 2000
A MULTI-BILLION DOLLAR MARKET OPPORTUNITY
"We believe these acquisitions will open the door to significant new
opportunities in our marketplace," said Landacorp President and CEO, Gene
Cattarina. "Landacorp will now be among the industry's most comprehensive
end-to-end medical management service providers. ProMedex and PatientCentrix add
key population health management components that can be integrated into our core
care coordination software -- components that include the ability to identify,
target and intervene with patients at different levels of health risk. We have
transcended the administrative cost-reduction dimensions of our current
solutions and are moving into a space where we can have a profound effect on
medical cost.
"The net result is that ProMedex and PatientCentrix can add and create
new revenue streams, and can help us grow our relationships with leading health
plans throughout the U.S.," Mr. Cattarina continued. "We believe these
acquisitions will not only create a number of cross-selling opportunities, but
also substantially expand our market space."
According to industry expert Al Lewis, Executive Director, Disease
Management Purchasing Consortium, "Every year the sickest 5% of the population
uses well over half of all health care resources. In the privately insured
market, that 5% is racking up $300 billion or more of claims. By combining
PatientCentrix's claims-based prediction with ProMedex's self-assessment tools,
you can pre-identify people who are likely to be responsible for more than half
of that spending. Applying timely assistance to those folks to keep at least
some of them healthy enough to avoid the hospital can save $15 billion or more.
Any kind of reasonable gain-sharing makes this a compelling revenue opportunity
for Landacorp."
"We believe comprehensive population health management services will be
essential to the efforts of employers, health plans and other payers to better
manage, if not reduce, healthcare costs," added Mr. Cattarina. "The combined
expertise, products and services of Landacorp, ProMedex and PatientCentrix will
allow us to package a range of these services at prices that could allow health
plans to not only cost-effectively work with patients with chronic conditions,
but also to target patients-at-risk to minimize the impact of treating them. And
it's important to note that, like Landacorp, both ProMedex and PatientCentrix
have web-enabled their products and services.
"Imagine the positive impact on healthcare when we have implemented
systems and methodologies that can identify and help manage life-threatening and
expensive medical conditions early in the game," concluded Mr. Cattarina. "We
are just beginning to tap these capabilities. Medical management will be at the
core of these efforts . . . it will be the driving force. And Landacorp will be
leading the charge."
PROMEDEX AND PATIENTCENTRIX ARE IDEAL FITS FOR LANDACORP
ProMedex will operate as a subsidiary of Landacorp and be led by
industry veteran Lee Rubin, who will serve as General Manager reporting to Mr.
Cattarina. ProMedex founder, Pieter Muntendam, M.D. will join Landacorp's
executive management team as Chief Medical Officer, and also report to Mr.
Cattarina. Dr. Muttendam has over 13 years diversified experience in the
healthcare industry and is one of the pioneers in setting up disease
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Landacorp Acquires ProMedex and PatientCentrix
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November 2, 2000
management departments in leading healthcare companies. Prior to founding
ProMedex, Dr. Muttendam was Vice President, Care Management at Glaxo Wellcome
where he was responsible for program development, implementation, clinical
economics, and pharmaceutical outcomes.
PatientCentrix will also operate as a subsidiary of Landacorp and be
headed by its founder Michael S. Miele, FSA, MAAA. Mr. Miele will join both
Landacorp's executive management team reporting to Mr. Cattarina, as well as the
company's board of directors. Prior to founding PatientCentrix, Mr. Miele served
as the Senior Actuary and National Practice Leader for the Price Waterhouse LLP
Disease State Management Group.
"Integrating Landacorp's medical management applications with ProMedex's
disease management services creates a unique opportunity for health plans to
identify and reach at-risk members and intervene in a timely manner to improve
outcomes of care and reduce cost," said Dr. Muntendam. "For example, using
Landacorp's medical management systems at the time of a pre-certification or
discharge, individuals can be enrolled in low cost, tailored programs that are
based on the information resident in Landacorp's software. We're thrilled to
become a part of the Landacorp family and look forward to making Landacorp the
dominant player in offering turn-key medical management solutions."
"This triad of Landacorp, ProMedex and PatientCentrix marries core
medical management technology with predictive modeling and the expertise to
proactively intervene with patients at risk in ways that inform and motivate
them to maintain a healthier lifestyle," said Mr. Miele. "All the pieces are
here for payers to realize significant reductions in medical resource
consumption while providing measurable sustainable improvements in quality."
ABOUT LANDACORP
Landacorp provides healthcare payers and delivery organizations
Internet- and Windows(R)-based medical management software and services that
help control the cost and improve the quality of healthcare delivery.
Landacorp's solutions--MAXMC(TM) and e-MAXMC(TM) for managed care
organizations, and MAXSYS II(TM) for healthcare delivery organizations--automate
and streamline administrative and business processes, minimize inefficient
paper-, fax-, and phone-based communications, and facilitate interaction among
various healthcare participants. The company's products are implemented at more
than 170 client sites and include applications for case and utilization
management, disease management, care management, risk and quality management,
clinical guidelines, and credentialing.
Landacorp also provides interactive media strategies, and Internet and
extranet site development to help payers and providers better connect with their
stakeholders through its iHealthMedia(sm) division. Visit the iHealthMedia
website at www.ihealthmedia.com.
Landacorp's corporate headquarters and sales and marketing offices are
located in Atlanta, GA. Research and development and client services operations
are located in Chico, CA. iHealthMedia is located in Portland, OR. Additional
sales and service offices are located across the country. Browse the Landacorp
website at www.landacorp.com.
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Landacorp Acquires ProMedex and PatientCentrix
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November 2, 2000
This release contains information about future expectations, plans and
prospects of Landacorp's management that constitute forward-looking statements
for purposes of the safe harbor provisions under The Private Securities
Litigation Reform Act of 1995. Actual results may differ materially from those
indicated by these forward-looking statements as a result of various important
factors including, but not limited to, Landacorp's dependence on a limited
number of products with limited market acceptance and other factors that are
discussed in the Company's Registration Statement on Form S-1 and other
documents periodically filed with the SEC. Examples of such forward-looking
statements include statements about anticipated markets for population health
management services; statements about synergies among our products and the
product offerings of ProMedex and PatientCentrix; and statements about expected
revenue opportunities and growth resulting from the combination of Landacorp,
ProMedex and PatientCentrix. These statements involve risks and uncertainties
including, but not limited to, the risk that the market for population health
management services does not develop as anticipated; and the risk that we are
unable to successfully integrate our products with ProMedex and PatientCentrix
products and capitalize on the anticipated synergies and revenue growth
opportunities resulting from the combination of the companies.
Landacorp, ProMedex, PatientCentrix, iHealthMedia, Maxsys II, maxMC, and e-maxMC
and their associated logos are trademarks, registered trademarks, or service
marks of Landacorp, Inc. Windows is a registered trademark of Microsft
Corporation.
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