IMS HEALTH's Erisco Managed Care Technologies Unit Signs The Regence Group for Facets Software Solution; One of Largest Deals Ever for Erisco's Managed Care Administration Software

Business Wire, Feb 22, 2000

Business & Health/Science Editors

LONDON--(BW HealthWire)--Feb. 22, 2000

IMS HEALTH (NYSE: RX) today announced that its Erisco Managed Care Technologies unit has signed The Regence Group, a Blue Cross Blue Shield organization serving 3 million members, to its fast-growing customer roster for Facets(R), Erisco's industry-leading client/server system for payer managed care administration. The agreement is one of the largest ever signed by Erisco, a leading provider of technology-based business solutions for healthcare payer organizations that manage healthcare administration for more than 70 million members worldwide. IMS HEALTH is the world's leading provider of information solutions to the pharmaceutical and healthcare industries.

Facets fits in perfectly to The Regence Group's strategy of delivering new-found efficiencies and greater value to its massive customer base, according to Rob Eaton, vice president, Systems Consolidation, The Regence Group. "We were looking for a comprehensive information system that could handle the backbone of our operations on a big scale," said Eaton. "The system has to be powerful, flexible and scalable enough to handle an administrative load that had originally been handled by five separate systems. And it needs to be able to grow as we grow, and bring new products to the market at a faster pace than ever. After a thorough review, it was clear Facets was the answer."

Headquartered in Portland, Oregon, The Regence Group was formed in 1996 by four Blue Cross Blue Shield organizations serving the Northwest United States. Regence BlueCross BlueShield of Utah joined The Regence Group the following year. One of the primary reasons for bringing these organizations together was to pool resources and become more efficient, remarked Eaton.

"Facets' modular design is a key benefit, enabling The Regence Group to use one platform and one database across all of its operations, while allowing for the smooth administration of multiple lines of business for its diverse customer base," said Eaton. "The open architecture of Facets enables us to manage a variety of different products, from HMO and PPO and managed indemnity to point-of-service and Medicare/Medicaid."

Following a series of interviews, presentations and field visits, The Regence Group selected Facets for both its flexibility and track record with other large managed care organizations. The company plans to go live with the system next year, migrating all of its products to Facets over the next 36 months.

"With the dynamic nature of the healthcare business, fulfilling an organization's evolving IT needs is a bigger challenge than ever," said Erisco President Tony Bellomo, who noted that the agreement is the latest example of Erisco's delivery of total systems solutions. "Facets is the right solution for today's managed care organizations because of its flexibility. It empowers them to achieve greater administrative efficiencies across multiple lines of business, to manage their growing membership rosters more effectively, and to bring new products to market with confidence. Facets is all about delivering added value to our clients."

The Regence Group is the Pacific Northwest's largest affiliation of health care plans, including Regence BlueCross BlueShield of Oregon, Regence BlueShield, Regence BlueShield of Idaho and Regence BlueCross BlueShield of Utah. Collectively, the four plans serve 3 million people in four states with more than $4 billion in combined annual revenue. With headquarters in Portland, Oregon, The Regence Group has networks of more than 22,000 professional providers and nearly 1,000 institutional providers.

Erisco Managed Care Technologies has been a leading provider of IT solutions for healthcare payer organizations for more than 20 years. Erisco solutions are used by more than 125 payer organizations serving over 70 million members worldwide. Erisco integrates advanced technology and clinical information with enterprise-wide business applications and Internet strategies to address the needs of HMOs, PPOs, and Blue Cross Blue Shield organizations.

IMS HEALTH is the world's leading provider of information solutions to the pharmaceutical and healthcare industries. With $1.4 billion in 1999 revenue, IMS HEALTH operates in over 100 countries. IMS HEALTH is the largest pharmaceutical manufacturer information partner, with over 40 years' experience in the industry. Key products and services integral to customer day-to-day operations include: market research for prescription and over-the-counter pharmaceutical products; sales management information to optimize sales force productivity; pharmaceutical relationship management solutions for sales and marketing decision making; and technology systems and information services that support managed care organizations.

February 22, 2000

This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although IMS HEALTH believes the expectations contained in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. This information may involve risks and uncertainties that could cause actual results of IMS HEALTH to differ materially from the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to (i) the risks associated with operating on a global basis, including fluctuations in the value of foreign currencies relative to the U.S. dollar, and the ability to successfully hedge such risks, (ii) the extent in which IMS HEALTH seeks growth through acquisitions, and the ability to identify and consummate acquisitions on satisfactory terms, (iii) the ability to develop new or advanced technologies and systems for its businesses on schedule and on a cost-effective basis, (iv) regulatory and legislative initiatives, particularly in the area of medical privacy, and (v) deterioration in economic conditions, particularly in the pharmaceutical, healthcare, information technology or other industries in which IMS HEALTH's customers operate.