Healthcare IT and Biotechnology News Release
Date of Publication: Friday, April 13, 2007


New providers include Select Medical and Brown and Toland IPA
ATLANTA, GA. -- MedAvant Healthcare Solutions (MedAvant) (NASDAQ: PILL), a leader in healthcare technology and transaction services, today announced that more than 3,000 healthcare providers joined the National Preferred Provider Network (NPPNTM) in the first quarter of this year. NPPN is MedAvant’s Preferred Provider Organization (PPO).

“Three thousand new providers in one quarter has become a standard for MedAvant,” said John Lettko, MedAvant CEO and president. “Our success at attracting new providers demonstrates the value of our direct contracts with healthcare providers, and it certainly makes NPPN more attractive to clients.” Direct contracts give providers a transparent relationship with the PPO and allow MedAvant to avoid leasing fees.

The providers who joined in the first quarter represent direct contracts with more than 2,500 physicians and 550 ancillary care providers. The acute care hospitals which joined the network in the first quarter collectively have more than 6,500 hospital beds. Among the new providers are Select Medical based in Mechanicsburg, Penn., with 94 specialty hospitals; Brown and Toland, an Independent Practice Association in San Francisco; and Bascom Ambulatory Surgery Center in Campbell, Calif.

The expanding provider base creates value for MedAvant’s clients, such as insurance companies, third party administers and self-insured companies, since they can provide covered employees with access to more healthcare providers.

“The coverage of the network met our clients’ needs in areas where their primary PPO was sparse,” said Debbie J. Spencer, Vice President of GEMGroup, one of NPPN’s new clients. The GEMGroup is a third party administrator based in Pittsburgh which offers more than 200 benefit plans. In addition to the geographic coverage, Spencer said GEMGroup chose NPPN for its electronic interface which will simplify claims processing and its reasonable fee structure.

The total number of NPPN providers increased 5% within the past year. NPPN now has more than 550,000 physicians, nearly 4,000 acute care facilities, and more than 90,000 ancillary care provider locations in all 50 states.

Providers join a PPO and accept reduced reimbursement for services rendered in exchange for more patients being directed to them. Clients save money when a covered employee chooses a healthcare provider in NPPN. MedAvant generates revenue on a percentage of clients’ savings.

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