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April 30, 1997 Charleston, S.C. – MedSolutions, Incorporated, and Healthsource of South Carolina, a CIGNA HealthCare affiliate, today announced an agreement designed to improve quality of care, help reduce radiology-related costs and curb the rapid growth of those costs for South Carolina residents covered by Healthsource. The agreement was announced today by Frank Kyle, President and Chief Executive Officer of Nashville, TN.-based MedSolutions, and Catherine Ferry, President and General Manager of Healthsource of South Carolina. MedSolutions specializes in the management of radiology services for managed care organizations, large physician groups, independent physician associations, and other provider systems which offer comprehensive health benefits. "Using proven business and clinical management techniques we can significantly reduce the traditional radiology expenditures of our clients," states Mr. Kyle. MedSolutions medical management techniques include the application of proprietary imaging guidelines in pre-certification of high-technology exams such as MRI and CT, physician profiling, privileging and assessment of radiology providers and various educational programs aimed at helping physicians more appropriately utilize costly procedures. This move is reflective of the current direction of healthcare on a nationwide basis. This type of agreement, where one company with a specific area of expertise manages that area within a larger organization, is emerging as an important component of progressive managed care delivery systems. Known within the industry as a "carve-out," MedSolutions can reduce the traditional costs by using their experience and expertise within that field. "Carve-outs have experienced tremendous growth over the past 10-15 years," states Jack S. Way, President and CEO of Way & Company, a Health and Employee Benefits Consulting Company. "It started with the really easy areas, psychiatry and behavioral services," Way continues. "They now are extremely strong, primarily because of the expertise, and therefore value, which they bring to their relationships." "Our program is designed with all physicians in mind, not just the radiologists," states Dr. Gregg Allen, Executive Vice President and Chief Medical Officer of MedSolutions. "We support those physicians and their patients through our protocols and our service." "Physicians understand that by supplying the ‘best practice’ clinical guidelines to radiology, they can improve quality of patient care and lower the cost at the same time," Allen concluded. The agreement between MedSolutions and Healthsource of South Carolina took effect April 1, 1998, and will cover approximately 90,000 members. MedSolutions is currently managing in excess of 550,000 members in seven states.
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