Regency Health Services signs agreement for purchase of new software systems; selects software from Keane Inc. and Medical Communications Software Inc

Business Wire, Jan 27, 1995

TUSTIN, Calif.--(BUSINESS WIRE)--Jan. 27, 1995--Regency Health Services Inc. (NYSE: RHS) Friday announced that it has signed a purchase agreement for new financial and clinical services software systems from Keane Inc. (AMEX: KEA) and Medical Communications Software Inc. for its 95 skilled nursing and rehabilitation facilities.

The integration of these new systems will provide Regency with a competitive advantage in its expansion into new services and in controlling its operations within the managed care environment. Both systems are expected to be fully installed and operational during 1995. Terms of the agreement were not disclosed.

Because the Keane and MCS products will be fully integrated, they will provide increased flexibility and efficiency for Regency's facilities in handling both the clinical and financial aspects of the business. The agreement involves significant licensing and support fees for Keane and MCS, which together provide software and services to more than 1,700 healthcare facilities throughout the country.

"Regency is pleased to be teaming with Keane and MCS, two experienced industry leaders," said Richard Matros, president and chief operating officer of Regency Health Services. "The goals of the three companies are very similar. This integrated system will provide the capabilities that we need to handle a range of new services, including subacute care.

"Further, the system will provide the information we need to become more competitive in the managed care environment, including linking outcome and cost data."

According to Allan Crommett, vice president of Management Information Systems, these partners were selected after a nine month review process and a thorough audit of their software development practices and capabilities followed by a six month contract negotiation. "We are confident these companies can deliver integrated products that will meet our needs now and with the anticipated changes in healthcare regulations," he said.

Keane's Resident Account Management system allows facilities to cost-effectively manage residents in subacute care and rehabilitation therapy as well as in the traditional skilled nursing unit. The software also meets the specialized billing requirements of managed care organizations.

The clinical programs from MCS assess the residents' medical status, prepare customized care plans and physicians' orders, and monitor quality assurance. As part of the agreement, Regency has already installed the MCS clinical assessment program in 85 of its facilities.

Keane Inc. is a $350 million software service company that designs, develops, integrates and manages software for corporations and healthcare facilities. The company services long-term care and acute care facilities through its Healthcare Services Division (HSD) and large corporations and government agencies through its Information Systems Division (ISD).

Headquartered in Boston, the company delivers software solutions cost-effectively and reliably through its network of 40 branch offices in the United States and Canada.

Medical Communications Software Inc., headquartered in Kansas City, Mo., currently services over 1,000 facilities nationally. MCS is a leader in providing a comprehensive clinical software solution for long-term care facilities that specialize in MDS, Care Planning, Quality Assurance and Management Outcome Tracking.

Regency operates 95 specialty health care facilities in California, Ohio, New Mexico and West Virginia with 9,370 licensed beds. In addition, Regency operates home health care and pharmacy subsidiaries.

Consistent with the company's strategy to continue moving further into the subacute and other more medically intensive treatment programs, 35 of Regency's facilities contain dedicated subacute units. These units provide care for medically stable patients who need acute nursing or rehabilitative care, but do not require intensive physician or diagnostic services.

Regency also provides rehabilitation therapies, Alzheimer's care, institutional pharmacy services, home health care, skilled nursing, residential care, long-term nursing care, and care for mentally disordered and developmentally disabled individuals.

CONTACT: Regency Health Services Inc.

Allan Crommett, 714/544-4443

Morgen-Walke Associates Inc.

Doug Sherk, Jenifer Kirtland, 415/296-7383

Sue Rodney, Dave Faupel, 212/850-5600