VIIAD™ to Reduce Waste and Improve Profits
in Healthcare Industry

Technology Platform Enables Payors to Achieve Deeper Discounts
While Assuring Compliance and Reducing Fraud

NEWTOWN, PA - June 6, 2007—VIIAD Systems, LLC, a company dedicated to bringing cost control to the healthcare system, today announced the introduction of VIIAD™ (Virtual Interactive Identification and Direction), a patent-pending technology and business methodology platform that reduces waste and increases efficiencies in the healthcare system. VIIAD enables payors (health and workers compensation insurance companies, self-insured businesses, third-party administrators) to customize their networks in order to achieve optimal coverage and superior discounts as they channel plan members along the most cost effective reimbursement path available while assuring regulatory compliance.

“We have been working in the insurance field for more than 25 years, and are convinced that there is a tremendous business opportunity to develop an offering to eliminate waste from the healthcare system while increasing profits for the payors. VIIAD is that offering,” said John Zubak, Chairman and CEO of VIIAD.

VIIAD has contractual relationships with upwards of 70 Preferred Provider Organizations (PPOs) around the country. The VIIAD network of PPOs coupled with the VIIAD technology enables clients to customize their PPO model (creating a “quilt” of county, regional or provider owned networks) in order to access national coverage while achieving superior discounts.

“Since founding the company last year, we have been working with a handful of initial clients ranging from major insurers to regional third party administrators to test the VIIAD platform. These clients are reporting increased discounts of 15 percent or more, on average, utilizing VIIAD,” said Harvey Mitgang, President and Chief Marketing Officer. “If you assume that annual claims account for more than 50 percent of the $2 trillion spent on U.S. healthcare (2005 figure from the Office of the Actuary at the Centers of Medicare and Medicaid Services), the 15 percent minimum in additional savings reported by clients using VIIAD represents potential savings of $150 billion dollars if applied across the industry.”

The following are additional benefits of VIIAD™:

  • Elimination of Traditional Insurance Card: By converting the static insurance cards to a “virtual insurance card,” VIIAD eradicates billions of dollars of waste from the healthcare industry.
  • Risk Management:
    • Compliance: The VIIAD technology brings a new level of compliance to the healthcare and workers compensation industries that eliminates fee reversals and non-compliance penalties, while verifying member eligibility in real-time.
    • Fraud: Safeguards providers from the “Silent PPO” industry (practice of industry consolidators/aggregators taking illegal discounts from physicians) and eliminates the possibility of a member getting treatment when coverage has lapsed.
  • Workers Compensation Compliance: The workers compensation industry is facing major fee reversals and significant lawsuits from years of operating in a non-compliant environment. The VIIAD system eliminates this problem moving forward.
  • Physicians: Providers experience administrative savings (in both dollars and time) from the increased efficiencies and improved compliance VIIAD brings to the healthcare industry. VIIAD allows providers to submit claims in real-time online and communicates when they need to collect out-of-network fees at point-of-service.
  • Consumers: VIIAD brings a new level of simplicity and understanding to consumers of the healthcare industry. Once the industry realizes the cost benefits of the technology, competition will bring eventual relief to consumer premiums.

About VIIAD Systems, LLC

Founded in 2006, VIIAD Systems, LLC, is dedicated to bringing cost control to the healthcare and workers compensation insurance industries by eliminating inefficiencies, improving compliance, streamlining administration and preventing fraud. VIIADTM (Virtual Interactive Identification and Direction) is a patent-pending technology and business methodology platform that enables payors (health and workers compensation insurance companies, self-insured businesses, third-party administrators) to customize their networks in order to achieve optimal coverage and superior discounts as they channel plan members along the most cost effective path available while assuring contractual and regulatory compliance. For more information on VIIAD, please visit www.viiad.com.

Contact:

Stacy Thompson/John Pappas
Bliss Gouverneur & Associates
(212) 840-1661