Archive for May, 2011

MAXIMUS AND CONNECTURE FORM ALLIANCE TO PROVIDE ROBUST GOVERNMENT HEALTH INSURANCE EXCHANGE SOLUTION

Tuesday, May 17th, 2011

- Alliance Creates Most Comprehensive, Effective Health Insurance Exchange Available -

(Reston, VA and Atlanta – May 17, 2011) – MAXIMUS, Inc. (NYSE:MMS), a leading provider of government services worldwide, and Connecture, the leader in Web-based marketplaces and administration solutions for health insurance distribution, announced today that the two companies have entered into a strategic alliance. This alliance will deliver a proven, comprehensive government Health Insurance Exchange (Exchange) solution blending the expertise in eligibility and enrollment for state Medicaid and CHIP programs provided by MAXIMUS with Connecture’s established Web-based health insurance shopping, enrollment and administration solution.

The Affordable Care Act (ACA) requires states either to establish an operational Exchange to offer qualified health insurance plans to individuals and small businesses by January 1, 2014 or to defer to the federal government in creating the Exchange. As a leading administrative services provider for helping state and federal governments run health insurance programs, MAXIMUS will combine StateAdvantage, Connecture’s ready-to-implement modular Exchange solution, with the Company’s proven Medicaid and CHIP outreach, eligibility and enrollment solutions to assist states in meeting the 2014 operational deadline. The alliance will enable the companies to deliver a seamless, easy-to-use solution for both SHOP and Individual Exchanges.

“Health Insurance Exchanges are the centerpiece of ACA for millions of newly eligible Americans to enroll and receive health insurance,” commented Bruce Caswell, President and General Manager of MAXIMUS Health Services. “The expertise we’ve gained as the eligibility and enrollment services administrator for nearly 20 million Medicaid and CHIP beneficiaries combined with StateAdvantage provides a seamless Exchange solution. As state and federal governments seek to comply with ACA, we offer them a cost-effective way to leverage their existing IT infrastructure and business processes as they face compressed timeframes for implementation and pressures to ensure the financial sustainability of their Exchange design.”

“Connecture’s StateAdvantage is focused on delivering Web-based insurance shopping, enrollment and administrative solutions that are consumer-friendly and minimize ongoing administrative costs,” added Dan Maynard, President and Chief Executive Officer of Connecture. “It is vital for states and the federal government to consider how their Exchange solutions will integrate and operate with health plans and existing government programs such as Medicaid and CHIP. Our alliance with MAXIMUS blends our innovative technology and knowledge of health insurance with the MAXIMUS service expertise and knowledge of Medicaid and CHIP to create a unique and powerful end-to-end Exchange offering. With StateAdvantage and our alliance with MAXIMUS, state and federal governments will not need to start from scratch when seeking enrollment administration solutions for their Exchange.”

About MAXIMUS
MAXIMUS is a leading provider of government services worldwide and is devoted to providing health and human services program management and consulting  services to its clients. The Company has more than 6,500 employees located in more than 220 offices in the United States, Canada, Australia and the United Kingdom. Additionally, MAXIMUS is included in the Russell 2000 Index and the S&P SmallCap 600 Index.

About Connecture
Connecture is the leading provider of web-based health insurance marketplace, service and administration technology. Its industry-proven solutions effectively assist  buyers with the health insurance purchasing process while minimizing the back-office administration tasks such as workflow management, application  processing, renewal processing and integration to carriers, state and federal programs. For more information, call Megan Riddle at 262.408.3865 or visit the Connecture website at www.connecture.com.

Easing ER Wait Times (WSJ.com)

Saturday, May 7th, 2011

By ANYA MARTIN

The time it takes to get treated at emergency rooms in the U.S. is on the rise, but hospitals are trying new methods to reduce the wait.

One tactic that’s working: Some hospitals are redirecting people with less-urgent conditions to other health-care providers. But that practice comes with its own problems, some doctors say.

About 14% to 27% of all emergency-room visits could take place at urgent-care centers or retail clinics, according to a study published last September in Health Affairs.

Of course, beyond the inconvenience of a long wait time, treatment delays can be deadly. Consider the highly publicized 2006 case of a woman who went to an ER in Waukegan, Ill., with chest pains. She went into cardiac arrest after waiting two hours.

In Milwaukee County, Wis., 48% of the 363,377 emergency-department visits last year were nonemergent, according to Paul Coogan, emergency-department medical director at Aurora Sinai Medical Center in Milwaukee.

“There’s a lot of nonurgent, nonemergent use of ERs because, let’s face it, we’re pretty quick, open 24/7, board-certified in emergency medicine and because of [federal] law, we have to see everybody who shows up,” he says.

Since starting a program in mid-2006 that matches nonurgent patients with alternate providers, Aurora Sinai has reduced its annual ER visits by about 23%, Dr. Coogan says. That percentage might have been higher if a nearby hospital had not closed, funneling more emergency patients into Aurora Sinai, he says.

To meet federal legal guidelines, all arriving patients at Aurora Sinai’s emergency department are seen and triaged by a physician, nurse practitioner or physician’s assistant, he says. If a patient is found to have a nonemergent issue, he is educated about the appropriate use of the emergency room to reduce unnecessary future visits and then is sent to a scheduler to make a follow-up appointment with a primary-care provider.

“We don’t just kick the patient out,” Dr. Coogan says. “We make sure they have an appointment with a primary-care doctor in hand, and that’s whether they have insurance or not.”

Efforts to redirect ER patients are often criticized as not being effective because people don’t show up at these follow-up appointments. But MyHealthDIRECT, the Web-based scheduling program that Aurora Sinai uses, was specifically developed to address reasons why people might miss appointments, says Jay Mason, chief executive and co-founder of the Milwaukee-based software developer.

“We’ve learned through the years what the important variables are,” he says. “So, for example, Jay lives in this neighborhood and needs to be seen tomorrow afternoon with a Spanish-speaking doctor who takes Medicaid.”

Taking nonurgent patients out of the ER only addresses one cause of the overcrowding that leads to longer wait times, says Jesse M. Pines, an emergency physician and director of George Washington University’s Center for Health Care Quality.

Other hospitals are addressing the wait-time issue by improving their processes — for example, having patients seen first by doctors rather than nurses, he says. “Then people with more minor conditions who don’t need tests can be discharged immediately, and people who need tests can get those ordered upfront and get through the system more quickly.”

Easing ER Wait Times
WSJ.COM: MONEY | MAY 7, 2011
http://online.wsj.com/article/SB10001424052748703859304576309853969914200.html

Healthcare Technology Expert Roy Ziegler Joins Chrysalis Ventures as Venture Partner

Thursday, May 5th, 2011

Louisville, KY, May 5, 2011

Chrysalis Ventures today announced the addition of Roy Ziegler to the firm as Venture Partner. Most recently with San Francisco-based Health Evolution Partners, Ziegler is an experienced healthcare technology investor, operator and consultant.

“I am thrilled that Roy is joining the Chrysalis Ventures team,” said David A. Jones, Jr., Chairman and Managing Director of Chrysalis Ventures. “Roy has 25 years of experience in healthcare services and technologies as an investor and operator, and his knowledge, networks and insight, not to mention his direct hands-on operating experience, will be a valuable addition to the Chrysalis team.”

“Chrysalis Ventures has a sophisticated and disciplined healthcare services and technology investment practice,” Ziegler added. “I am excited to work with the team to find the next great healthcare technology companies and help them succeed.”

At Health Evolution Partners, Ziegler initially focused on the fund’s venture strategy, investing in four venture funds and leading investments in healthcare services and IT companies, including Prematics, Mauna Kea Technologies, and Foundation Radiology.  Later, as an Operating Partner, Ziegler focused on investments in later stage healthcare IT companies.  Prior to Health Evolution Partners, he was a Venture Partner at Partech International, where he sourced and led the firm’s investment in Vimo and also worked with Radianse and DecisionView. 

Chrysalis Managing Director Koleman Karleski said, “It’s an exciting time to be investing in healthcare, and we’re fortunate to have assembled a deeply experienced team to help entrepreneurs build great businesses.”

Prior to becoming an investor, Ziegler was a Board member and part of the senior executive team at healthcare IT consulting firm First Consulting Group (FCG) responsible for growing FCG’s revenue from $8 million to $300 million over a ten year period, which included an initial public offering. Focusing on healthcare information technology and outsourcing, he had P&L responsibility for multiple business practices and/or operating regions that served hospitals, health insurance and pharmaceutical companies, and was CEO of the eServices division. FCG was ultimately sold to Computer Sciences Corporation.

After graduating from Pepperdine University with a degree in business administration, Ziegler joined Accenture where he specialized in healthcare IT and healthcare services, working with hospitals and health insurance companies to develop IT strategies and implement systems and technologies to drive operating improvements. He also helped create a national health insurance practice within the firm.

Ziegler will be based in San Francisco.

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About Chrysalis Ventures

Chrysalis Ventures manages one of Mid-America’s largest funds for early-stage and growth investments with approximately $400 million under management. Since 1993, the firm has invested in over 65 companies, primarily in the healthcare and technology sectors. With headquarters in Louisville, Kentucky, Chrysalis has offices in Cleveland, Pittsburgh, Ann Arbor and Houston. The firm seeks to partner with entrepreneurs to build enduring businesses in industries undergoing significant transformation. For more information, please visit www.chrysalisventures.com.

Atlanta firm considers move to Waukesha

Monday, May 2nd, 2011

Health care business CEO wants to relocate headquarters if state provides incentive

Premium content from The Business Journal – by Corrinne Hess

Date: Friday, April 29, 2011, 5:00am CDT

Dan Maynard . . . “If Gov. Walker wants to bring business here, I want to give him the opportunity to do so.”

An Atlanta-based health care technology company is considering relocating its corporate headquarters to Wisconsin if Gov. Scott Walker will provide the right incentives.

Dan Maynard, president and chief executive officer of Connecture, a software developer for health insurers and brokers, plans on doubling the size of the company in terms of employees and revenue over the next two years and he wants to do it here. He could hire up to 200 new employees in the Milwaukee area.

“Gov. Walker’s employer-friendly attitude maybe hasn’t all come to closure, but it has gotten someone like myself to pay attention,” Maynard said. “If Gov. Walker wants to bring business here, I want to give him the opportunity to do so.”

Maynard, who already operates an office in Waukesha with about 110 employees, and lives here himself, said he could easily expand in Atlanta, where the infrastructure is already in place, but he would prefer to grow the business in Wisconsin.

Recent headlines detailing Walker’s financial assistance to other businesses, such as the April 20 announcement that Merge Healthcare Inc. would receive $500,000 in tax credits and a $500,000 loan from the Wisconsin Department of Commerce to consolidate operations at its Hartland facility, made him think about his own value to Wisconsin.

“I’m an entrepreneur and I’ve never requested anything from the state before,” Maynard said. “But there will be some costs associated with the move, and I would certainly like some incentives to bring more employees to the state.”

The state is especially interested in helping companies relocate headquarters to Wisconsin and there are several programs available to people who want to do so, said Department of Commerce spokesman Tony Hozeny.

Connecture expanded last year when it began offering insurance brokers an online “shopping platform,” where they could search insurance carriers and compare rates. The broker exchange is similar to the health insurance exchanges that states are being asked to create under federal health care reform.

States must demonstrate to the federal government by Jan. 1, 2013, that their exchange is viable for implementation by Jan. 1, 2014. Wisconsin is one of seven states to receive a $37.7 million “early innovator” grant to develop an exchange model that can be used in other states.

Maynard would like to be awarded the contract to develop the exchange.

He said he is one of the top three choices in at least six other states, although he wouldn’t say which states.

Wisconsin’s health insurance exchange was being developed rapidly under former Gov. Jim Doyle. However, the Walker administration appears to have slowed down the process. The exchange will be a massive undertaking driven by guidance from the federal government and right now, a lot of that guidance is not available, said Seth Boffeli, spokesman for the state Department of Health Services.

Maynard has been a Wisconsin business owner since 1993 when he founded a computer consulting company called Computing Concepts Inc., which was purchased in 1999 by Workscape, a Massachusetts benefits software company.

Workscape closed the Waukesha office in 2001; Maynard and some of his partners bought the assets and intellectual property and opened Riverwood Solutions. In 2004, Riverwood Solutions merged with its largest competitor, Connecture.

When Maynard took over Connecture in 2004, the company had 47 employees and annual revenue of $16 million. Today, there are close to 200 employees in three locations and annual revenue of $30 million.

Maynard said his investors question his desire to expand in Wisconsin instead of Atlanta, which is why Maynard is trying to get Walker’s attention.

He’ll also ask Georgia Gov. Nathan Deal what incentives that state would offer him to stay in Atlanta.