Contact: Bonnie Shaw
Clearpoint Agency
(858) 724-2500
Bonnie@clearpointagency.com

For Immediate Release

HERAE Announces Its Membership in The Center for Health Transformation Founded by Newt Gingrich

– HERAE´s Direct Deposit for Healthcare™ contributes to healthcare reform by reducing costs by more than $5 billion a year –

San Diego - September 19, 2005 -HERAE, LLC, a business process management and Web services provider for the healthcare industry, today announced that it is a member of The Center for Health Transformation, a collaboration of civic and corporate leaders dedicated to the creation of a 21st Century intelligent health system.

“The Center for Health Transformation and our members are dedicated to accelerating the adoption of transformational solutions, policies, and technologies in order to create a 21st Century Intelligent Health System that saves lives and saves money," said former Speaker Newt Gingrich, Founder of the Center for Health Transformation. "We applaud HERAE's initiative to develop innovative healthcare payment processing technologies designed to create efficiencies and reduce costs for the healthcare industry.”

It´s estimated that HERAE´s HIPAA compliant, patent-pending process will save billions for the healthcare industry by facilitating the movement of information and money between healthcare providers and insurance plans (payers) electronically. This completely electronic Direct Deposit for Healthcare™ process typically reduces the time for providers to process and receive insurance payments by 5-10 business days, while diminishing fraud and embezzlement risks. HERAE´s electronic processing solutions are expected to reduce operation and transaction costs for providers by as much as two-thirds and for healthcare payers by as much as 50 percent.

“HERAE´s patented system is a result of years of research to find IT solutions that will reduce the time and money the healthcare system is spending on payment processing,” said Jim Ribelin, executive vice president of HERAE. “HERAE´s goals are closely aligned with CHT. HERAE is committed to developing technology solutions that improve healthcare business processes for significant savings to the entire system. We are honored to be part of the collaboration created by CHT and its founder Newt Gingrich.”

HERAE´s research identifies the average cost to a physician´s office for traditional, manual processing of each payment envelope at $9.20. This means physician offices spend as much as $5.5 billion a year to manually process claim payments. In addition, at an average cost of $0.42 per envelope, payers spend another $252 million a year to issue the payments by mail.

HERAE´s paperless process and clearinghouse capabilities create consistency of format for explanation of benefits (EOBs), consolidate payments, and solve the coordination problems between the arrival of payments and the corresponding EOBs, saving thousands of dollars and thousands of hours of staff time for healthcare providers and payers. The banking component for movement of funds results in simpler and faster processing, complete elimination of paper envelopes, checks and paper EOB forms, time savings, unprecedented reporting capabilities, as well as decreased fraud and security issues.

HERAE´s process is very simple to use because it is ASP-based, requiring nothing more than a Web browser. For cash posting activities, HERAE´s browser tiling software, ViewPoint, is installed on the local PC. When the transactions are completed, the data is conveniently stored in a relational database called the Electronic File Cabinet™.

About The Center for Health Transformation

The Center for Health Transformation, founded by former House Speaker Newt Gingrich, is a unique collaboration of public and private sector leaders dedicated to accelerating the adoption of transformational solutions, policies, and technologies in order to create a 21st Century Intelligent Health System that saves lives and saves money. For more information, visit www.healthtransformation.net.

About HERAE, LLC

A privately owned limited liability corporation based in San Diego, California, HERAE provides painless payment processing and direct deposit for the healthcare industry. Through its unique focus on healthcare provider billing challenges and electronic remittance advice, HERAE has developed a paperless process with standardized explanation of benefits (EOB) forms, detailed reporting and process workflow enhancement capabilities that improve collections, reduce costs by up to two-thirds, and complete the payment to deposit cycle in 24-48 hours. On the Net: www.herae.com or call 888-41-HERAE (888-414-3723).

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