Largest Not-For-Profit HMO Renews National Contract With DxCG

BOSTON--(BUSINESS WIRE)--April 13, 2004-- America’s Leading Integrated Health Care Program Upgrades to RiskSmart(TM)

DxCG(R), Inc., the leading independent provider of predictive modeling software for health care organizations, today announced that Kaiser Permanente, the largest not for-profit health plan in the US, has renewed its national predictive modeling contract with DxCG. As part of this multi-year agreement, Kaiser will upgrade to DxCG’s RiskSmart(TM) product.

Kaiser Permanente has successfully used DxCG’s Diagnostic Cost Group (DCG) and RxGroups(R) models since 1998. DxCG predictive models use diagnostic and pharmacy data to quantify the impact of a patient’s health status on medical costs and predict future treatment needs of patients. RiskSmart deploys the models using web-based reporting.

“We are delighted that Kaiser has decided to implement RiskSmart,” said Marilyn Schlein Kramer, President and CEO of DxCG, Inc. “Kaiser has made excellent use of the models to solve problems in both medical and financial management. RiskSmart will allow Kaiser to leverage DxCG’s predictive models even more.”

“Predictive models have played a key role over the years in helping us manage the health of our members,” said Jim Turner, FSA, and Vice President of Actuarial Services at Kaiser Permanente. “The models make it easy to evaluate large amounts of information in order to make faster and better decisions in the delivery of quality care to our members.”

This is Kaiser Permanente’s second contract renewal with DxCG.

About Kaiser Permanente

Kaiser Permanente is America’s leading integrated health plan. Founded in 1945, it is a not-for-profit, group practice prepayment program with headquarters in Oakland, California. Kaiser Permanente serves the health care needs of over 8.3 million members in 9 states and the District of Columbia. Today it encompasses the not-for-profit Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their subsidiaries, and the for-profit Permanente Medical Groups, as well as an affiliation with Group Health Cooperative based in Seattle.

Nationwide, Kaiser Permanente includes approximately 134,000 technical, administrative and clerical employees and 11,000 physicians representing all specialties.

About DxCG, Inc.

DxCG promotes fair and efficient health care by providing software solutions to more accurately plan, budget and evaluate health care management programs. DxCG has more than 175 clients, covering over 70 million lives in the US and aboard. The company’s Diagnostic Cost Group (DCG) and RxGroups(R) predictive models are used to negotiate health-based payments, identify opportunities for disease management, profile physicians and evaluate managed care programs. Recognized by leading independent researchers as the most proven models available, DxCG’s methodologies are used by the federal government to set payment rates for the Medicare+Choice program. For more information, visit the company’s Web site at www.dxcg.com.

Contacts

DxCG, Inc. Diane Laurent, 617-896-5909 diane.laurent@dxcg.com