EXHIBIT 99.1
                              COMPANY NEWS RELEASE
PROXYMED [LOGO]

                              FOR IMMEDIATE RELEASE

RELEASE

CONTACT:
JUDSON E. SCHMID
CHIEF FINANCIAL OFFICER
954-473-1001, EXT. 300
investorrelations@proxymed.com

            PROXYMED ACQUIRES MEDICAL DATA INSURANCE PROCESSING, INC.
                    - EXPANDS PROXYMED'S OFFERINGS TO INCLUDE
                    NATIONWIDE HOSPITAL AND DENTAL CLAIMS -

         FORT LAUDERDALE, FLORIDA (Business Wire) July 31, 2002 - ProxyMed, Inc.
(Nasdaq: PILL), a leading provider of physician healthcare transaction
processing services, announced today that it has acquired the assets of Medical
Data Insurance Processing, Inc. (MDIP), a privately-held company providing UB92
institutional claims processing services, for $2.4 million in cash. MDIP's
co-founders and principals, BJ and David Dvorak, will continue to lead the
operation as part of the ProxyMed team.

         MDIP, located in Sioux Falls, South Dakota, has provided UB92, HCFA and
dental claims processing services in South Dakota and throughout the United
States for over 10 years. MDIP recently received EHNAC accreditation and is
widely recognized for its internal quality processes and exceptional customer
care.

         Nancy Ham, ProxyMed's President and Chief Operating Officer said, "We
are delighted to welcome MDIP's management team and associates to our Payer
Services business unit. The addition of MDIP significantly expands our
capabilities for UB92 processing and further strengthens ProxyMed's position as
the nation's second largest and fastest growing provider connectivity company."

         With its acquisition of MDIP, ProxyMed will contribute accretive
results to its Payer Services operations through both existing revenue streams
and new cross-selling opportunities. The acquisition will allow ProxyMed to
market institutional claims processing to its existing customers and to
cross-sell expanded commercial claims services to MDIP's current customer base.

         "We are excited to be joining ProxyMed's team," said BJ Dvorak,
President of MDIP. "ProxyMed and MDIP are leaders in commercial and
institutional claims processing respectively and together will create a powerful
one-stop-shop for providers and payers throughout the country."







ABOUT PROXYMED - WHERE HEALTHCARE CONNECTS(TM)

ProxyMed solves the business problems of physician offices every day by
automating their financial, administrative and clinical transactions with
healthcare institutions. To facilitate these services, ProxyMed operates
ProxyNet(R), its secure, proprietary national electronic information network,
which provides physicians and other healthcare 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. ProxyMed exceeds customer expectations through our expertise,
proven methodologies and dedication to service excellence.

Note: THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS THAT REFLECT OUR
CURRENT ASSUMPTIONS AND EXPECTATIONS REGARDING FUTURE EVENTS, INCLUDING WITHOUT
LIMITATION THE STATEMENTS RELATING TO OUR EXPECTATION THAT THE ACQUISITION WILL
BE ACCRETIVE TO OUR CURRENT OPERATIONS. WHILE THESE STATEMENTS REFLECT OUR
CURRENT JUDGMENT, THEY ARE SUBJECT TO RISKS AND UNCERTAINTIES. ACTUAL RESULTS
MAY DIFFER SIGNIFICANTLY FROM PROJECTED RESULTS DUE TO A NUMBER OF FACTORS,
INCLUDING, BUT NOT LIMITED TO THE SOUNDNESS OF OUR BUSINESS STRATEGIES RELATIVE
TO THE PERCEIVED MARKET OPPORTUNITIES; OUR ABILITY TO IDENTIFY SUITABLE
ACQUISITION CANDIDATES; OUR ABILITY TO INTEGRATE THE OPERATIONS OF MDIP INTO OUR
EXISTING OPERATIONS AND OUR ABILITY TO SUCCESSFULLY INTEGRATE ANY FUTURE
ACQUISITIONS; OUR ABILITY TO SUCCESSFULLY DEVELOP, MARKET, SELL, CROSS-SELL,
INSTALL AND UPGRADE OUR CLINICAL AND FINANCIAL TRANSACTION SERVICES AND
APPLICATIONS TO CURRENT AND NEW PHYSICIANS, PAYERS, MEDICAL LABORATORIES AND
PHARMACIES; OUR ABILITY TO COMPETE EFFECTIVELY ON PRICE AND SUPPORT SERVICES;
OUR ASSESSMENT OF THE HEALTHCARE INDUSTRY'S NEED, DESIRE AND ABILITY TO BECOME
TECHNOLOGY EFFICIENT; OUR ABILITY TO IDENTIFY SUITABLE ACQUISITION CANDIDATES;
AND OUR ABILITY AND THAT OF OUR BUSINESS ASSOCIATES TO COMPLY WITH VARIOUS
GOVERNMENT RULES REGARDING HEALTHCARE AND PATIENT PRIVACY. THESE AND OTHER RISK
FACTORS ARE MORE FULLY DISCUSSED IN THE RISK FACTORS DISCLOSURE IN OUR FORM 10-K
FOR THE YEAR ENDED DECEMBER 31, 2001 AND OUR OTHER FILINGS WITH THE SECURITIES
AND EXCHANGE COMMISSION, WHICH WE STRONGLY URGE YOU TO READ. WE EXPRESSLY
DISCLAIM ANY INTENT OR OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENTS. WHEN
USED, THE WORDS "BELIEVES," "ESTIMATED," "EXPECTS," "ANTICIPATES," "MAY" AND
SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS.

MORE INFORMATION ON PROXYMED IS AVAILABLE ON ITS HOME PAGE AT
http://www.proxymed.com.