Trizetto Signs Five-Year, $10 Million-A-Year ASP Contract With One Of Arkansas' Largest Health Plans
Positions HMO for Continued Expansion
NEWPORT BEACH, Calif., December 7, 1999 —The TriZettoSM Group (www.trizetto.com, Nasdaq:TZIX), a leading provider of Internet-enabled application services and business portals for the healthcare industry, today announced the signing of a five-year contract to provide hosted application and administrative services to QualChoice of Arkansas, one of the state's largest health plans, with 80,000 members. TriZetto is an application services provider (ASP) for the healthcare market. As an ASP, TriZetto integrates and hosts software applications over the Internet for a flat monthly fee. This enables TriZetto's customers to avoid the significant costs and responsibilities inherent in owning, customizing, and running software applications and infrastructure.
The five-year contract will initially add an incremental $10 million in annual revenue to TriZetto, which should increase each year as the Plan attracts new members. In addition to ASP services, TriZetto will provide Internet and e-business services; transaction-processing services; and other services. TriZetto plans to implement its Internet portal, HealthWeb®, to further position QualChoice for rapid growth while making it easier for members, doctors and employers to conduct business with the health plan. Using HealthWeb, members will be able to enroll in a QualChoice health plan, select a primary care physician, request ID cards and view the status of their claims; physicians will be able to verify patient eligibility and benefits, view claims status and submit specialist referrals for approval; and employers will be able to monitor the enrollment process to mitigate errors and gauge employee enthusiasm for plan offerings.
About QualChoice of Arkansas
QualChoice of Arkansas and QCA Health Plan, an affiliated HMO, provide managed care services to Arkansas residents throughout the State. QualChoice is based in Little Rock and is sponsored by the University of Arkansas for Medical Sciences, The Tenet Health System and St. Vincent Health System, among others. It is the second largest health plan in the State of Arkansas and serves State of Arkansas and University of Arkansas employees, the State Public school personnel group, Wal-Mart and other large employers in the State as well as hundreds of smaller employer groups. It is the largest provider-supported health plan in the State.
The TriZettoSM Group, Inc. is a leading provider of Internet-enabled application services and business portals for the healthcare industry. As a vertical application services provider for the healthcare industry, TriZetto hosts and provides access to leading business and Internet applications. HealthWeb®, its Internet portal, assists healthcare administrators and professionals in performing their routine tasks and facilitates information-exchange and e-commerce among all key healthcare participants: providers, health plans, employers and consumers. Headquartered in Newport Beach, Calif., TriZetto can be reached at (949) 719-2200, www.trizetto.com or www.healthweb.net.
Jodi Amendola for TriZetto
This press release may contain forward-looking information (statements that are not historical facts and relate to future performance) that involves risks and uncertainties. The forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include statements about future net revenues, profits, and financial results, the market for TriZetto's services, future service offerings, client and partner relationships, and TriZetto's operational capabilities. Actual results may differ materially from those stated in any forward-looking statements based on a number of factors, including the effectiveness of TriZetto's implementation of its business plan, the market's acceptance of TriZetto's services, risks associated with management of growth, reliance on third parties to supply key components of TriZetto's services, attraction and retention of employees, variability of quarterly operating results, including the effects of the client purchasing patterns due to Year 2000 issues, competitive factors, risks associated with acquisitions, changes in demand for third party products or solutions, which form the basis of TriZetto's service offerings, and risks associated with rapidly changing technology, as well as the risks identified in TriZetto's SEC filings, including information under the heading of risk factors in its Form S-1 filed in October 1999.