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"This new e-prescribing requirement for Medicare prescriptions completely changes the landscape in the emerging e-prescribing market. Because Medicare is the largest payor in the country and the vast majority of physicians see Medicare patients, technology adopted for Medicare is expected to spread quickly to the entire healthcare industry and we believe e-prescribing will soon become the standard of care in the U.S.," said Rick Spurr, ZixCorp's chief executive officer. "I believe the e-prescribing requirement in Medicare will be a catalyst that accelerates growth in this industry."
"With this law, Congress has endorsed our approach and validated our persistent, focused pursuit of this market," continued Spurr. "For years, people have looked to electronic medical records ("EMR's") as the panacea for improving the healthcare system, but until recently, ZixCorp has been the lone voice advocating e-prescribing as the best way to introduce clinical information technology across the entire spectrum of physician practices. Once physicians have embraced e-prescribing, they can choose to add additional functionality at their own pace for improved clinical decision making. This is particularly applicable to doctors who practice in offices of 5 or fewer physicians, which represent 75 percent of the highest prescribing physicians in this country, because they tend not to have large capital budgets or IT staffs to provide support. The physicians who work in these smaller practices are largely underserved by the major healthcare technology vendors, so we view this target market of the approximately 100,000 primary care physicians who practice in these smaller groups as being fertile ground for the few standalone e-prescribing vendors, including ZixCorp, of course, who is the leader in this space and only publicly traded e-prescribing vendor."
"The structure of the financial incentives in the law puts ZixCorp in an ideal position to continue its industry leadership," said Spurr. "Increasing Medicare reimbursement levels promotes better adoption and utilization of e-prescribing while implicitly encouraging others to step in to pay for the upfront costs. Our payor-based strategy where insurance companies help to fund these upfront costs including the ability for us to offer a turnkey solution to the physician addresses the primary barriers to the wider spread adoption of e-prescribing. These primary barriers, cost and administrative hassle, were identified by a survey of physicians completed last year by the Gorman Health Group and presented to Congress. Our deep relationships with our payor customers, including Aetna, BCBS Illinois, BCBS Louisiana, BCBS Massachusetts, BCBS North Carolina, Independence Blue Cross, LA Care and United Health Care, have taken years to cultivate, so we are well-positioned to partner with them to address the needs of physicians. Other supposedly free offerings, including the National e-Prescribing Patient Safety Initiative (NEPSI), do not address the administrative hassles, including loading patient identifying information into the system, individual training and support, or configuring a handheld device to enable the mobility that the market demands. To this point, while there are claims that physicians sign up for these competitive offerings, there has been no evidence presented of actual usage of these systems."
"As the leading standalone e-prescribing vendor with documented results of lowering costs and improving patient safety, we believe the passage of this law will be a tremendous boost to our business, both in the near-term for our physician recruiting and retention as well as the long-term development of this market," concluded Spurr. "We have the right strategy, the necessary experience, key relationships, and a great product, all of which are required to succeed in the emerging e-prescribing market, so ZixCorp is particularly well-positioned in this industry."
ZixCorp's PocketScript(R) e-prescribing service enables physicians to order prescriptions through a secure wireless mobile PDA or secure Web site and deliver them electronically to the patient's preferred pharmacy. Mobility enables PocketScript to provide clinical decision support at the point-of-care with real-time access to a drug reference guide as well as patient-level eligibility, formulary, and co-pay information to aid the prescriber in selecting the most cost-effective prescription based on the patient's benefits. The application also provides comprehensive drug-to-drug and drug-to-allergy interaction alerts based on patient-specific dispensed drug history. Through our partnership with SureScripts/RxHub, PocketScript delivers end-to-end connectivity within the healthcare system to reduce unnecessary costs, improve patient safety and convenience, and enhance practice efficiency.
ZixCorp Conference Call on July 17, 2008
The conference call to discuss the implications to ZixCorp of the Medicare Improvements for Patients and Providers Act of 2008 will be held at 2:00 p.m. ET on July 17, 2008. A live Webcast of the call will be available on the investor relations portion of ZixCorp's Web site at http://investor.zixcorp.com. Alternatively, participants can listen to the conference call by dialing 617-614-2705 or toll-free 866-800-8652 and entering access code 28131856. An audio replay of the conference will be available until July 23, by dialing 617-801-6888 or toll-free 888-286-8010, and entering the access code 23242483, and after that date via Webcast on the Company's Web site.
About Zix Corporation
ZixCorp is the leading provider of easy-to-use-and-deploy email encryption and e-prescribing services that Connect entities with their customers and partners to Protect and Deliver sensitive information in the healthcare, finance, insurance and government industries. ZixCorp's hosted Email Encryption Service provides an easy and cost-effective way to ensure customer privacy and regulatory compliance for corporate email. Its PocketScript(R) e-prescribing service saves lives and saves money by automating the prescription process between payors, doctors and pharmacies. For more information, visit http://www.zixcorp.com.
Safe Harbor Statement for ZixCorp
The following is a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release, including the following sentences, "I believe the e-prescribing requirement in Medicare will be a catalyst that accelerates growth in this industry," and " ... ZixCorp is particularly well-positioned in this industry," are not a guarantee of future performance and involve risks and uncertainties. Actual results may differ materially from those projected in the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the Company's continued operating losses and use of cash resources in its PocketScript e-Prescription business; the Company's ability to achieve broad market acceptance for its e-Prescription business, including the Company's ability to enter into new sponsorship agreements for its e-Prescription business; the Company's ability to maintain existing and generate other revenue opportunities, including fees for scripts written, from its e-Prescription business; the expected increase in competition in the Company's e-Prescription business; and the Company's ability to successfully and timely introduce new e-Prescription products and services or related products and services and implement technological changes. Further details pertaining to such risks and uncertainties may be found in the Company's public filings with the SEC.
SOURCE Zix Corporation