Lawson to Provide Its Leading Software to Power medibuy's ASP-based Marketplace

Business Wire, Feb 5, 2001

Business Editors/High-Tech Writers

NEW ORLEANS--(BUSINESS WIRE)--Feb. 5, 2001

Strategic Relationship Enables Hospitals to Outsource Materials

Management Information Systems through medibuy's Online Marketplace

medibuy.com Inc., an e-commerce solution for healthcare supply chain efficiency, and Lawson Software, a provider of integrated e-business solutions, today announced a strategic relationship to develop complete automation of the procurement process from the initial requisition and purchase order to final delivery and payment. Under the agreement, Lawson will provide its industry expertise and proven, fully Web-addressable lawson.insight(TM) e-business software to power medibuy's application service provider (ASP)-based marketplace and enable medibuy's healthcare buyers to fully outsource their materials management information systems (MMIS). The companies made the announcement at the annual Healthcare Information Management System Society (HIMSS) Conference and Exhibition in New Orleans.

Terms of the relationship include a multi-year licensing agreement that allows medibuy to offer a cost-effective ASP solution to its healthcare customers, including HCA-The Healthcare Company, LifePoint Hospitals, Triad Hospitals, Health Management Associates and members of Premier Purchasing Partners. Additionally, both companies are co-developing healthcare-specific functionality that will be incorporated into the medibuy online marketplace to create the most complete end-to-end healthcare supply chain solution for hospitals and integrated healthcare systems.

"With the state-of-the-art e-business technologies powering this marketplace, and the formidable buying power that organizations like HCA and Premier bring to the table, medibuy will drive new efficiencies in the healthcare supply chain," said Jay Coughlan, president and chief operating officer, Lawson Software. "Lawson's involvement in this project is another clear indication that the healthcare industry recognizes our commitment to serving its needs, and that our e-business solutions are helping them find new ways to lower costs while maintaining high levels of care."

Under the agreement, medibuy will host Lawson's Web-based suite of supply chain management software, which includes lawson.insight Self-Evident Applications(TM) (SEA), Procurement e-business engines and Enterprise Workflow, Open Component and Collaborative Commerce Extensions, and will have access to the lawson.insight e-Procurement Service, Lawson's universal portal to digital trading exchanges.

Lawson's software tools will enable medibuy's marketplace to offer complete procurement process automation, from the initial request for supplies or equipment from any area of the hospital, through the payment for any medical or non-medical product. Once a request is made, the system will check existing inventory (at local or regional warehouses), fully automate the approval process if a purchase is necessary, generate an automated purchase order to the supplier, provide all necessary shipping and invoicing documents electronically and simplify the receiving/matching process to provide expedited payment for delivered goods.

"Buyers will be seamlessly linked to their trading partners via medibuy's marketplace," said Dennis Murphy, chief executive officer of medibuy. "Buyers will benefit from fully automating the complete requisition and approval processes and having medibuy replace their outdated MMIS via our hosted medibuy solution. This will enable better utilization of limited resources, better pricing through contract compliance and streamlining the receiving and accounting processes. Both buyers and suppliers will be able to access real-time supply chain transaction information for improved management of their respective businesses."

"Working with leaders in technology such as Lawson gives hospitals and other healthcare providers the option of fully integrating their procurement and materials management processes via our online marketplace," said Eddie Pearson, chief technology officer of medibuy. "We're helping hospitals and suppliers eliminate the tremendous waste inherent in today's healthcare supply chain."

About medibuy

medibuy operates a business-to-business Internet marketplace for the efficient management, purchase and sale of medical and non-medical products, equipment and services used by the healthcare industry. Through its online marketplace, medibuy enables buyers and sellers to reduce many of the inefficiencies of the traditional healthcare supply chain and provides substantial benefits to participating buyers and sellers by reducing order processing and tracking costs and improving the utilization of data relating to products, equipment, services, transactions and market trends. medibuy has a growing network of strategic relationships with technology and healthcare leaders including; Premier Inc., HCA and WebMD Corporation. For more information on medibuy or to register with the company, please visit the company's Web site at www.medibuy.com.