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Ingenix to Acquire ENS and Completes Acquisition of Claredi; Combination to Create Next Generation of Connectivity to Improve Claims Accuracy and EfficiencyMINNEAPOLIS --(Business Wire)-- May 25, 2006 -- Ingenix, a leading health information company, announced today that it has agreed in principle to acquire NWH, Inc. (NWH), the parent company of health care payer services organization Electronic Network Systems, Inc. (ENS), and has completed the acquisition of Claredi Corporation (Claredi), a leading provider of e-commerce software solutions, implementation and consulting services to the health care industry. Pursuant to the definitive merger agreement, Ingenix would acquire all of the outstanding shares of NWH for a cash price of $18.24 per share, or approximately $54 million. The transaction, which is subject to NWH stockholder approval and other customary closing conditions, is expected to close during the third quarter of 2006. Terms of the Claredi transaction were not disclosed. "This announcement is good news for the entire health care industry," said Richard Anderson, chief executive officer of Ingenix. "We intend to create the next generation of connectivity by combining ENS and Claredi assets and resources with Ingenix capabilities in coding, claims editing, revenue cycle management and health care transaction management. This combination will facilitate the creation of intelligent electronic connectivity tools for use by physicians, hospitals and payers in an open network. Our focus will be to enhance the health care system's affordability and usability by providing real-time Internet connections among the participants in health care. This will increase efficiency, help physicians get quicker payment of claims and assist payers in reducing the amount of rework and rejected claims." The combination will enhance the use of connectivity and interoperability technology across the health care industry: -- For physicians, hospitals and other providers, Ingenix intends to offer additional value-added services that, combined with ENS connectivity and service capabilities, will lower claims administration costs, lower accounts receivable balances, reduce contractual underpayments, decrease denials and reduce payer/provider disputes. -- For payers such as health plans, Ingenix intends to enable better management of the processes beyond the transmission and acceptance of claims, increase auto-adjudication rates, reduce claim rejection rates, improve claims accuracy and decrease claims processing costs. -- For systems vendors, the next generation of real-time connectivity will mean additional value-added services, such as clean-claim capability, payer-specific edits and reimbursement management in an open network. Terrence S. Cassidy, founder and chief executive officer of NWH, said, "Ingenix provides us with an outstanding opportunity to grow our business and to improve the value we bring our customers. We will now have access to sufficient capital and a wide array of industry-leading technology to construct the next-generation Health Care Exchange." Dr. Kepa Zubeldia, president and chief technology officer of Claredi, said, "Like Claredi, Ingenix has demonstrated a clear, long-term commitment to improving interoperability in the health care system. We are excited about joining their organization. We now have an opportunity to realize our vision on an even broader scale to the benefit of the health care industry." About Ingenix Ingenix, a wholly-owned subsidiary of UnitedHealth Group, Inc. (NYSE:UNH), provides products and services to a diverse customer base within the health care community. Organizations rely on its innovative technology to improve the delivery and operations of their business. More information about Ingenix and its products and services can be obtained at http://www.ingenix.com. About NWH, Inc. and Electronic Network Systems, Inc. NWH, Inc. (Nasdaq:NWIR), a holding and strategic resource company, owns and operates Electronic Network Systems, Inc. (ENS), which offers Internet and e-commerce connectivity between thousands of health care providers such as physicians, hospitals, clinics, practice management software vendors and third-party commercial payers. More information about ENS and its products and services can be obtained at http://www.enshealth.com. About Claredi Corporation Claredi Corporation (Claredi), a Salt Lake City-based company that pioneered the concept of health care transaction validation, provides comprehensive electronic data interchange solutions that enable health care organizations to easily connect with trading partners, ensure the quality of data exchange and efficiently manage the ongoing evolution of their health care transactions and messaging. More information about Claredi and its products and services can be obtained at http://www.claredi.com. Forward-Looking Statements This news release may contain statements, estimates or projections that constitute "forward-looking" statements as defined under U.S. federal securities laws. Generally the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. A list and description of some of the risks and uncertainties can be found in our reports filed with the Securities and Exchange Commission from time to time, including our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Except to the extent otherwise required by federal securities laws, we do not undertake to publicly update or revise any forward-looking statements. |
