Exhibit 99.1
Press Release
CONTACTS:
Risa Fisher Susan Leahy
CareInsite, Inc. Blue Cross and Blue Shield
(201) 703-3415 of Massachusetts
rfisher@careinsite.com (617) 832-4823
- ----------------------
CAREINSITE AND BLUE CROSS BLUE SHIELD OF MASSACHUSETTS
ANNOUNCE STRATEGIC PARTNERSHIP
CareInsite Acquires Leading Physician E-Commerce Network from
Blue Cross Blue Shield of Massachusetts
Blue Cross Blue Shield of Massachusetts To Join
CareInsite's Healthcare Network
ELMWOOD PARK, NJ and BOSTON, MA, February 15, 2000 - CareInsite, Inc. (NASDAQ:
CARI), a subsidiary of Medical Manager Corporation (NASDAQ: MMGR), and Blue
Cross Blue Shield of Massachusetts (BCBSMA) announced today that the two
companies have entered into a comprehensive strategic relationship. CareInsite
will purchase substantially all the assets of BCBSMA's Provider Technology Group
(PTG) for a total of $70 million, $25 million of which is payable in cash and
$45 million of which is payable in shares of CareInsite stock. Through PTG,
BCBSMA operates a premier all-payer medical transaction processing network,
linking more than 12,000 physicians with BCBSMA and most major insurance
companies, government insurers, HMO's and PPO's in Massachusetts. Under a
separate agreement, CareInsite will become the provider of Internet content and
connectivity services for BCBSMA. The companies expect the transaction to close
prior to the end of March 2000.
The agreement between BCBSMA and CareInsite marks a significant
milestone for both organizations. BCBSMA will leverage the comprehensive
technology of CareInsite, including clinical and administrative transaction
capabilities, physician- and patient-centered Internet portal services, as well
as unique content and messaging for physicians and plan members. Under this
agreement, CareInsite and BCBSMA will introduce new, web-enabled services that
are integrated into the clinical and administrative workflow of physicians'
offices in the Massachusetts marketplace:
o In conjunction with BCBSMA, CareInsite will develop and
implement new referral and pre-certification capabilities,
where services will be authorized in real time by executing
the appropriate benefit plan rules electronically at the point
of care. This
will save substantial time and reduce costs for physicians and
health plans, as well as simplify and improve patients'
interactions with BCBSMA.
o CareInsite will implement its prescription communications
services, which provide physicians with access to BCBSMA's
formularies, treatment guidelines, drug benefit plan rules,
and online, real time drug utilization review at the point of
care.
o BCBSMA will also participate in CareInsite's patient-focused
Internet portal, which will help bring patient-physician
communication, and patient-health plan interaction
capabilities, such as online explanation of benefits, claims
status checks, and prescription renewals to the BCBSMA plan
members.
o With BCBSMA as a key development partner, CareInsite will
create a new generation of online, real time medical claims
adjudication capabilities, which will dramatically streamline
and accelerate the claims and reimbursement processes for
physicians and patients alike.
William C. Van Faasen, CEO of BCBSMA, said, "We are delighted that we
are in a position that as a company, we are building toward the future. Our
partnership with CareInsite is essential to achieve our strategic goal of
enhancing our relationship with providers and plan members. Since 1992, PTG's
network has been providing physicians with electronic administrative
transactions and patient medication histories. With the addition of CareInsite's
managed care, clinical transaction, content, and messaging services, we will
provide better information and support to the providers who care for our
members.
Dr. William Winkenwerder is the head of Health Care Services at BCBSMA.
"We at BCBSMA are very excited about this partnership with CareInsite. We regard
the newly created company of CareInsite and Healtheon/Web MD as the premier
player in the business of Internet-based health care transactions and services.
With the addition of CareInsite's technology to our existing e-commerce
capabilities, we will have the most advanced Internet health services
capabilities anywhere. Doctors and patients will benefit tremendously."
The 40 BCBSMA associates who comprise the Provider Technology Group
will join the CareInsite team. Commenting on this important new relationship,
Marv Rich, CEO of CareInsite, said, "We welcome the PTG team to CareInsite and
we are excited to begin working with BCBSMA. BCBSMA is a leading edge health
care company that has built one of the nation's premier all-payer electronic
transaction networks. BCBSMA, New England's largest insurer, is the right
partner to help CareInsite bring an integrated, focused Internet capability to
physicians and consumers in Massachusetts. Together, we will help improve the
quality of care and eliminate administrative inefficiencies by delivering more
comprehensive information at the most appropriate points of care."
CareInsite announced yesterday that it had signed definitive agreements
with Healtheon/WebMD (NASDAQ: HLTH) pursuant to which Healtheon/WebMD will
acquire
CareInsite and its parent company, Medical Manager Corporation, a leading
provider of practice management systems. The combination of these businesses
brings together companies with complementary strengths and a shared vision aimed
at reducing health care costs and improving the quality of care. Mr. Van Faasen
said, "CareInsite's vision and innovation now will enable BCBSMA to vault its
service enhancements to the next level. We've very excited about their
newly-announced deal with Healtheon, which we believe will help us deliver
improved service to our members."
CareInsite, Inc. provides innovative healthcare network and e-commerce
services that leverage Internet technology to enable the confidential exchange
of clinical, administrative and financial information among physicians and their
patients, and affiliated health plans, providers and suppliers. The Company's
services are designed to improve the quality of patient care and reduce the
administrative and clinical costs of healthcare. CareInsite is a 69% owned
subsidiary of Medical Manager Corporation.
Blue Cross Blue Shield of Massachusetts, headquartered in Boston, is
New England's largest insurer, providing coverage to more than 1.9 million
members. In its recently announced financial results, Blue Cross Blue Shield of
Massachusetts posted a $61.3 million net gain, the Company's third consecutive
annual net gain.
*******
This press release contains certain forward-looking statements relating
to CareInsite's dealings with customers and partners for its healthcare
electronic commerce services. These statements are based on
CareInsite's current plans and expectations and involve risks and
uncertainties that could cause actual future events to be different
from those described or implied by such forward looking statements.
Further information about these matters can be found in CareInsite's
Securities and Exchange Commission filings. CareInsite expressly
disclaims any intent or obligation to update these forward-looking
statements.