Ingenix to Acquire Executive Health Resources

Ingenix, a leading health information technology and services company, today announced it is acquiring Executive Health Resources, a leading provider of medical necessity compliance and physician medical management solutions for hospitals. The transaction is subject to regulatory approval and other customary closing conditions and is expected to close before the end of 2010.

Combined, Executive Health Resources and Ingenix will have a greater ability to help hospitals manage medical necessity compliance requirements as hospitals and health systems serve an increasing volume of patients with government-sponsored health benefit plans. Executive Health Resources’ Physician Advisor teams provide hospitals and health systems with the dedicated, technology-supported services needed to assist hospitals with managing compliance with Centers for Medicare & Medicaid Services (CMS)- and state-directed medical necessity rules and regulations. Ingenix offers consulting, information systems and services that help hospitals maintain the highest quality of care and improve operational efficiency.

Under federal and state law, hospitals and health systems must perform compliance reviews for medical services provided to patients covered by Medicare and Medicaid programs to ensure that care is medically necessary and delivered in the proper care setting. Congress expanded federal auditing oversight in 2006 to all 50 U.S. states in an effort to reduce federal payment discrepancies with hospitals. Executive Health Resources provides evidence-based clinical intelligence and Physician Advisors highly-trained in CMS rules and regulations to support hospitals in complying with federal and state provisions related to medical necessity.

"The expertise and evidence-based clinical insights that Executive Health Resources and its outstanding team provide, combined with Ingenix’s unmatched health information and analytics capabilities, will help our clients thrive in the evolving regulatory environment for health care,” said Andy Slavitt, chief executive officer of Ingenix. "We look forward to working with Executive Health Resources to continue to develop the insight and innovative technologies our clients need.”

Dr. Robert Corrato, president and chief executive officer of Executive Health Resources, said, "The regulatory landscape is complex and ever-changing, and compliance has become a crucial aspect of a hospital’s operational integrity. As we continue to support our clients in this rapidly growing market with solutions that simplify the compliance process, Ingenix’s impressive data assets and sophisticated technologies will help us to more quickly deliver critical, technology-enabled intelligence for our clients.”

Executive Health Resources serves more than 1,100 hospital and health system clients nationwide. Its clients include for-profit and non-profit systems, academic medical centers, community hospitals and specialty centers.

About Ingenix

Ingenix transforms organizations and improves health care through information and technology. Organizations rely on its innovative products, services and consulting to improve the delivery and operations of their business. More information about Ingenix can be obtained at http://www.ingenix.com.

About Executive Health Resources

Executive Health Resources is a leading provider of medical necessity regulatory compliance and physician medical management solutions to hospitals and health systems in the United States. The company offers outsourced turnkey expert solutions focused on improving hospital efficiency and compliance through teams of specially-trained technology enabled Physician Advisors. Executive Health Resources’ solutions combine trained medical experts, information technology, proprietary data and evidence-based medical research and intelligence to help hospitals manage compliance and revenue integrity risks. More information about Executive Health Resources can be obtained at http://www.ehrdocs.com.