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First
Data and ProxyMed Form Strategic Relationship
Relationship Delivers Powerful
Electronic
Remittance and Payment Solution to Healthcare Industry
DENVER and FORT LAUDERDALE, Fla., July 7 /PRNewswire-FirstCall/
-- First Data Corp. (NYSE: FDC), a global leader in electronic commerce and
payment services, and ProxyMed, Inc. (Nasdaq: PILL), a leading provider of
electronic healthcare transaction processing services, today announced the two
companies will leverage their individual strengths to work together to bring
innovative and cost-efficient electronic payment processing to the healthcare
industry.
By leveraging ProxyMed's deep payer and provider
connectivity with First Data's financial transaction expertise, the two
companies will begin jointly marketing FirstProxy, a new suite of innovative
solutions that streamline and expedite healthcare claim, payment and settlement
processes. The first offering, FirstProxy ERA/EFT, will transform the remittance
advice and payment process from paper-based to electronic.
"First Data continues to identify ways to
grow an open and flexible payments system to foster competition and innovation
to the benefit of consumers and businesses for all types of financial
transactions," said First Data Chairman and Chief Executive Officer Charlie
Fote. "We're leading the way as the world moves from paper-based to
electronic-based payments. The relationship with ProxyMed will allow us to bring
our payment expertise to healthcare, resulting in innovative new payment
solutions to improve efficiencies and reduce costs for healthcare providers and
insurance carriers by electronically consolidating administrative and financial
tasks."
Together, ProxyMed and First Data will allow
healthcare providers and insurance companies to rapidly convert existing
paper-based checks and explanation of benefits into secure, HIPAA-compliant
electronic ERAs with electronic funds transfer. The processing and settlement of
the financial transactions and payments will start and end within the First Data
processing system. FirstProxy ERA/EFT will also ensure that insurers and
providers are compliant with upcoming HIPAA regulation deadlines that require
standards for health information security and privacy as well as the
implementation of electronic data interchange for ERAs.
"Today's announcement will allow us to bring
to the healthcare industry products that leverage the strengths of our two
organizations," said Michael K. Hoover, chairman and CEO, ProxyMed, Inc.
"By combining First Data's payments transaction processing superiority and
financial market expertise with our established relationships and connectivity
with healthcare providers and insurers, we will make a real difference in terms
of overall payment effectiveness as well as regulatory compliance."
Additionally, in connection with this strategic
relationship, First Data will have the right to purchase shares of ProxyMed
common stock pursuant to performance based revenue thresholds of the FirstProxy
offerings in the future.
As the world's leading payment processor, First
Data has built a world- class processing infrastructure and merchant processing
network, supporting 1,400 card issuers and 3 million merchants worldwide.
ProxyMed is the nation's second largest medical claims processor with direct
connectivity to over 140,000 healthcare providers and all-payer connections in
46 states, and is an EHNAC certified organization maintaining direct
connectivity to one of the industry's largest lists of payers, the largest list
of chain and independent pharmacies and the largest list of clinical
laboratories.
About ProxyMed
ProxyMed is the nation's second largest physician-based electronic healthcare
transaction processing services company providing connectivity services and
related value-added products to physicians, payers, pharmacies, medical
laboratories, and other healthcare providers and suppliers. ProxyMed's
electronic transaction processing services support a broad range of both
financial and clinical transactions. To facilitate these services, ProxyMed
operates ProxyNet®, its secure, proprietary national electronic information
network, which provides physicians and other primary care providers with direct
connectivity to one of the industry's largest list of payers, the largest list
of chain and independent pharmacies and the largest list of clinical
laboratories. More information on ProxyMed is available on its home page at www.proxymed.com.
About First Data
First Data Corp. (NYSE: FDC), with global headquarters in Denver, helps power
the global economy. As the leader in electronic commerce and payment services,
First Data serves approximately 3 million merchant locations, 1,400 card issuers
and millions of consumers, making it easy, fast and secure for people and
businesses to buy goods and services using virtually any form of payment. With
29,000 employees worldwide, the company provides credit, debit, smart card and
stored-value card issuing and merchant transaction processing services; Internet
commerce solutions; Western Union® money transfers services; money orders; and
check processing and verification services throughout the United States. First
Data also offers a variety of payment services in the United Kingdom, Australia,
Canada, Japan, Mexico, Spain, the Netherlands, the Middle East and Germany. Its
Western Union and Orlandi Valuta money transfer agent networks include
approximately 159,000 Agent locations in more than 195 countries and
territories. For more information, please visit the company's Web site at www.firstdata.com.
Contacts:
Donna Pennington of First Data
+1-402-222-6178
donna.pennington@firstdatacorp.com
or
Judd Schmid of ProxyMed
+1-954-473-1001 ext. 353
investorrelations@proxymed.com