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June CAP TODAY / Fighting alphabet blight Raymond D. Aller, MD During the past several years, a blizzard of health care payer organizations have spun into existence for what many in the medical community perceive as the sole purpose of reducing payment for medical services. The health care field viewed the introduction of HMOs, PPOs, and IPAs with curiosity and concern, but it was unaware that an alphabet blight would soon spread across the country and that an essential tool for fighting this blight would be a well-supported, highly integrated billing software package. In the early 98s, I was directing a struggling independent laboratory in Santa Barbara, Calif. The laboratory used an outside billing service for several years, until a cousin of one of the lab s pathologists wrote a billing software program for the lab. Once billing services were brought in-house, requisitions were entered into the lab s commercial laboratory information system, carried to the billing department, and rekeyed into the billing systemand the lab still struggled. In 988, the laboratory purchased a commercially supported laboratory billing package and I wrote the interface software to feed transactions automatically from the LIS to the billing system. That year marked a striking change in the laboratory s financial viabilityit went from never having the resources to pay for pathologists time to running significantly in the black and paying for pathologists services. A few years later, the owners of the laboratory were able to justify a lab valuation that resulted in the laboratory being sold for a substantial profit. But t all billing service efforts have resulted in handsome rewards, as evidenced in ather southern California community. The hospital laboratory director in that town was ecstatic that his outreach program, launched months earlier, was already bringing in revenues of $7, per month. The lab director, therefore, was dumbfounded when the hospital s chief financial officer requested that the program be terminated because collections were only percent. Upon investigation, the lab director discovered that the hospital billing office had a longstanding policy of automatically writing off any invoice under $. The hospital had determined that a $7 residual on a $, hospital discharge bill was t worth pursuingyet 8 percent of the laboratory invoices were less than $. The lab director learned the hard way that laboratories can longer rely on hospital billing offices to charge for outreach lab work. Pages feature billing and accounts receivable software packages. All data presented in the survey have been provided by the vendors. If you are in the market for such systems, verify all pertinent information before purchasing a software package, but do t send a -page request for proposal to each vendor. Select only those vendors that appear to match the needs of your practice and ask them for a complete list of sites. Call a few of those sites to determine if their software package is meeting their business needs and if their vendor provides reliable service. Dr. Aller is vice president for medical affairs and informatics at MDS Laboratory Services (U.S.). He can be reached at raller@mdslabsus.com. Part of article No. of contracts signed as of March, No. of contracts signed between March, March, (////) Invative peripherals available but t installed, or t available) claim form generation Auto delete of nbillable procedures Client contracts supported from data center t operated by client Tabulation does t represent an endorsement by the College of American Pathologists Antek Inc. Richard Jefferson rjefferson@labdaq.com 8 Business Center Drive Reisterstown, MD 8-9-9 daqbilling.com DAQbilling / 99 8% manual entry, HL7 /// ASP system ( server required) any Web-enabled PC Windows NT Delphi Oracle ne LabDaq t available t available t available t available t available t available (Medicare, NDC Trailblazer, MMIC) requires software be installed on client PC all /escrow //per day basis/$ //as needed/$ //as needed/$ //as needed/$ a true ASP-based practice management system providing secure access from any Web-enabled computer includes automated electronic claim filing provides the lowest startup and continuing operational cost Clinical Information Systems Inc. Angela Woolley cisbiw@aol.com 88 Willamette Drive West Linn, OR 978 8-89-8/-99-97 www.cislab.com CIS Billing & Accounts Receivable Management Software 988/ 988 9 9 (/87///*), 8, (ave.:,), 8, (ave.:,) / manual entry, tape load from ather, ANSI-X, other (from CISLab) //7/ generic image capture, image output SCO Unix, Windows NT C, C++, Cobol, Delphi, Visual Basic C-Isam, SQL RDBMS HBOC, Dairyland, Medical Manager HBOC, Dairyland, CISLab 8% % t available t available 8% t available t available (can interface with any clearinghouse) UB-9, fixed fee, monthly rental, requires software be installed on client PC, uses dumb terminals /escrow interface with other systems electronic claim submission and remittance medical necessity validation; HMO utilization * veterinary laboratory Survey editor: Raymond Aller, MD

/ CAP TODAY June Part of article on page Computer Service and Support Inc. James T. O Neill Jr. sales@csslis.com New Rd., Bldg. E- Linwood, NJ 8 9-- www.csslis.com Cortex Medical Management Systems Inc. Stan Gordon sgordon@cortexmed.com Western Ave., Ste. Seattle, WA 98-8-98 cortexmed.com Diamond Computing James T. Campbell jim@diamondcomputing.net Fourth St. Tucker, GA 8 77-9-8 A/R Cortex Windows Billing System 98/ 98 98/ 98 98/ 98 No. of contracts signed as of March, No. of contracts signed between March, March, (////) (//9//*) 8 8 (8////),.M (ave.:,) /,, /,, 77, (max.) / manual entry, tape load from ather system, FTP or equivalent file transfer from ather, ASCII file manual entry, HL7, proprietary format manual entry, tape load from ather system, FTP or equivalent file transfer from ather, user-defined interface /// /// /// Invative peripherals IBM RS/ Windows PC, terminals AIX.. C Lab Base PC server PC NT/ Visual Basic Microsoft SQL server Intel-based servers Wyse, Intel-based PCs Unix, Windows NT MUMPS/M PCN, Medic, HBOC, CCA, Medical Manager, Conceptual HBOC, Meditech Cerner, TDS, Meditech, Sunquest Sunquest, Cortex Cerner, Meditech, Sunquest available but t installed, or t available) claim form generation Auto delete of nbillable procedures 8% % % % 9% t available 9% available in June available in June 8% 8% % t available 9% % % (ProxyMed, Web MD) (HBOC, Empire, NDEX, Medtrac) UB-9, Client contracts supported from data center t operated by client / $7k/$k/$k/$.k $k/$k/$k/$.k /escrow /$k/$k/$.7k /$k+/$k+/$.7k+ $.8k (software only) $.8k (software only) / reference laboratory billing specialist electronic remittance Medicare HIPAA-compliant v. 8. integrated with Microsoft/Great Plains/Solomon Accounting general ledger, accounts payable, inventory modules Crystal Report Writer source code for all reports * emergency medicine; Easter Seals easy to use; menu driven interface to spreadsheets accounting reports Tabulation does t represent an endorsement by the College of American Pathologists

/ CAP TODAY June Part of article on page e-suite Cecelia Parker E. Park Blvd., th floor Pla, TX 77 8-7-87 www.getesuite.com Hex Laboratory Systems Susan Bollinger sbollinger@hexlab.com B El Cami Real, Ste. 8 Encinitas, CA 9 8-79-8 www.hexlab.com Medical Data Processing Inc. Tracy Davidson tracydavidson@att.net S. Park St. Kalamazoo, MI 97-8-7 www.mdp.net e-financial Lab/Hex Cash Management Medsys/ 98/ 98 98/ 98 97/ 98 No. of contracts signed as of March, No. of contracts signed between March, March, (////) 9 9 (////*) 7 7 (//8//) 9,, (ave.:,) /, 7, (ave.:,) /, M (ave.:,), M (ave.:.m) 8+/+ 9 manual entry, HL7 manual entry, tape load from ather system, FTP or equivalent file transfer from ather, ANSI-X, modem, NSF manual entry, tape load from ather system, FTP or equivalent file transfer from ather, ANSI-X, other /9// /8// /// /// 9 7+ Invative peripherals Compaq Alpha Dell or similar PC VMS Open M Intersystems, M/SQL, DSM Dell PowerEdge, any Intel PC w/ RAID Intel PCs, Wyse terminals Unix, Linux Thoroughbred Basic Idol IV, GL, SQL HP e series HP terminals, PC workstations w/ Windows MPE/ix Cobol e-reference Laboratory, Sunquest Commercial Laboratory, Citation SMS, HBOC, Sunquest, Cerner, Antrim, Experior, Logician, IDX, Medical Manager, Medic, any HL7, proprietary Lab/Hex, AP Easy HBOC, Sunquest, Meditech, Cerner, SMS HBOC, ALG, Sunquest, Meditech, Cerner, Soft, Cortex, homegrown available but t installed, or t available) claim form generation Auto delete of nbillable procedures t available available but t installed ( of lab clients) 98% (some do client billing only) % 9 (some do patient billing only) 98% 9 9 98% % 9 (Per Se) UB-9,, custom services per specialized contracts (ProxyMed) UB-8, UB-9, (NEIC, Cydata, ExpressBill, IMS, ProxyMed) UB-8, UB-9, Client contracts supported from data center t operated by client fixed fee based on range of transactions 7 or by a third party* fixed fee, requires software be installed on client PC, uses dumb terminals requires software be installed on client PC, uses dumb terminals or requires use of private, dedicated circuit / /escrow $k/$9.k/$k/$.k $k/$k/$k/$.k $/$k/$.k/$.k $k/$k/$k/$.k /escrow $k/$k/incl.*/$.7k $k/$9k/incl.*/$.k $k/$k/incl.*/$.7k $k/$9k/incl.*/$.k capital investment; low monthly subscription fee; hardware obsolescence ASP model is ideal for labs positioning for rapid growth provides the tools to assist with compliance * data center is hosted by Inflow with e-suite support staff electronic claims and remittance medical necessity module to ensure accurate filing and prompt payment veterinary labs and hospital outreach * veterinary and health department extensive amount of information provided to facilitate efficient working of accounts comprehensive yet flexible automatic updates, including back-ups, with /7 support * excludes travel expenses Tabulation does t represent an endorsement by the College of American Pathologists

/ CAP TODAY June Part of article on page Medical Information Techlogy Inc. Paul Berthiaume info@meditech.com Meditech Circle Westwood, MA 9 78-8- www.meditech.com Medical Information Techlogy Inc. Paul Berthiaume info@meditech.com Meditech Circle Westwood, MA 9 78-8- www.meditech.com Multidata Computer Systems Inc. Michael Slater mrslater@mul.com Seventh Ave. New York, NY -97-7 www.mul.com Billing/Accounts Receivable (client/server) Billing/Accounts Receivable (Magic) MultiTech A/R 977/ 99 977/ 99 98/ 98 No. of contracts signed as of March, No. of contracts signed between March, March, 7, (////),.M (ave.:,) / % manual entry, tape load from ather system, FTP or equivalent file transfer from ather manual entry, tape load from ather system, FTP or equivalent file transfer from ather manual entry, tape load from ather system, FTP or equivalent file transfer from ather,7 total,7 total /// //./ + Invative peripherals JJ Wild Inc., Compaq Digital IBM-compatible PCs Windows NT, 9 Magic C/S SQL server JJ Wild Inc., Compaq Digital dumb terminals Magic Magic SQL server, Magic Intel Pentium compatible, Compaq Alpha, most Unix RISC PC workstation w/wrq Reflection software, DEC VT series or compatible optional image input/output Windows, NT, Compaq/DEC VMS, Unix, Linux Caché (M), VB Caché (M) Cerner, IDX, McKesson HBOC, others Cerner, M, Sunquest, IDX, Antrim, McKesson HBOC, SMS, others Cerner, IDX, McKesson HBOC, others Cerner, M, Sunquest, IDX, Antrim, McKesson HBOC, SMS, others SMS, CSM Cerner, Psyche, SMS, SCC available but t installed, or t available) claim form generation Auto delete of nbillable procedures 8 handled by admissions application 8 handled by admissions application % % % 8% (can interface with any electronic clearinghouse if communication protocols are met) UB-8, UB-9, (can interface with any electronic clearinghouse if communication protocols are met) UB-8, UB-9, (Envoy) UB-9, Client contracts supported from data center t operated by client optional / / optional/escrow $k/$k/incl./$.k $k/$k/incl./$.k $k/$k/incl./$.k $k/$k/incl./$.k flexible billing and collection features fully integrated with Meditech s cost accounting, general ledger, and A/P applications produces specialized collection reports flexible billing and collection features fully integrated with Meditech s cost accounting, general ledger, and A/P applications produces specialized collection reports extensive functionality for electronic remittance processing, with rules-based actions for denials/partial payments automated claims management tools to help resolve missing/incomplete/medically necessary data system designed for commercial labs Tabulation does t represent an endorsement by the College of American Pathologists

/ CAP TODAY June Part of article on page SCC Soft Computer Ellie Vahman U.S. Hwy. 9N Palm Harbor, FL 8 8-7-8 www.softcomputer.com Sunquest Information Systems Odessa Newell odessa.newell@sunquest.com 8 E. Broadway Blvd. Tucson, AZ 87-9 8-78-98 www.sunquest.com Xifin Inc. Craig Terner cterner@xifin.com Faraday, Ste. A Carlsbad, CA 98 7-8-77 www.xifin.com Soft A/R Sunquest Financial Medical Accounts Receivables System 98/ 98 98/ 98 / No. of contracts signed as of March, No. of contracts signed between March, March, 9 7 (////*) 99 99 (//9//*) (////) /, (ave.:,),, (ave.:,) / %,, (ave.:,) manual entry, tape load from ather system, FTP or equivalent file transfer from ather, ANSI-X, NSE, customized clearinghouse format manual entry, FTP or equivalent file transfer from ather manual entry, FTP or equivalent file transfer from ather, ANSI-X, proprietary 7/8/7/ //8/8 /9// /// 8/// 8 ASP model deployment (one PC/user with Internet connection) Invative peripherals RISC, HP 9 dumb terminals, PCs optical storage AIX, HP-UX, Windows NT, 98 C++, PL-SQL Oracle IBM RS/, Compaq Alpha Dell Optiplex or similar PC AIX, Unix, VMS M, Caché Intersystems M/SQL, Intersystems DSM, Caché Sun Dell Solaris Java Oracle, BEA Weblogic, Business Objects, See Beyond Quadramed, SMS, IBAX, TDS, IDX, HBOC, Meditech, custom SCC, Soft Lab Cerner, SMS, HBOC Cerner, SMS, HBOC, Sunquest Flexilab, Sunquest Commercial Lab Triple G available but t installed, or t available) claim form generation Auto delete of nbillable procedures available but t installed available but t installed available but t installed available in 9% % 9% 78% 8% 7% 7% 7% 9% % 78% t available 7% available in Sept. t available available in Sept. t available (MCR, NEIC, MVP, Blue Cross, Envoy) UB-9, (Per Se is preferred, NEIC, Cydata) UB-9,, custom billing services (Envoy, Per Se, ProxyMed), NY Medicaid Client contracts supported from data center t operated by client fixed-fee,, negotiable requires software be installed on client PC or requires use of private, dedicated circuit (VPN) monthly subscription charge or requires use of private, dedicated circuit (option for large customers) by a third-party (SR) /escrow $k/$k/$k/$k $7k/$k/$k/$k $k/$k/$k/$k $7k/$k/$k/$k / $k/$7k/$.8k/$.9k $7k/$k/$k/$7k $/$7k/$.8k/$.9k $7k/$k/$k/$7k / $/$. per accession/$k/$ $/$.7 per accession/$k/$ HIS, reference lab, SNF, and ESRD billing options client-defined and editable billing formats without vendor intervention multi-tiered pricing options; unlimited billing edits * clinics, reference labs very high throughput integrated medical necessity and procedure code consolidation tools broad range of client-billed pricing and discounting methods * billing service bureau comprehensive automation of process and data communication to reduce errors and operational and maintenance costs compliance logic embedded throughout process to prompt and track potential ncompliant actions by users as well as create and maintain all required audit logs emphasis on system and resource maintenance Tabulation does t represent an endorsement by the College of American Pathologists