DALLAS, July 12 /PRNewswire-FirstCall/ -- ACS , a premier provider of business process and information technology outsourcing solutions, announced today that it has completed the acquisition of Heritage Information Systems, Inc. The purchase price was $23 million, plus contingent payments based on future financial performance.
Heritage is a privately held company providing clinical management and pharmacy cost containment solutions to fourteen state Medicaid programs, over a dozen national commercial insurers and Blue Cross Blue Shield licensees, and some of the largest employer groups in the country. Heritage reported revenues of approximately $14 million in the 12 months ended March 2004.
"This strategic acquisition enhances ACS' clinical management and cost containment service offerings in the commercial and state healthcare industries by adding proven market solutions that improve the quality of care and reduce costs in healthcare programs," said Harvey V. Braswell, Group President of ACS State Healthcare Solutions. "We are very pleased to be integrating Heritage, with its outstanding reputation, into ACS."
For over 20 years, Heritage has helped commercial and government healthcare organizations improve the quality of care for healthcare recipients and lower pharmacy-related costs. Through a sophisticated suite of proprietary, web-enabled software applications, Heritage translates patient- specific medical and drug claims data into meaningful and actionable information.
Heritage offers the SmartPA(SM) application, which sets a new industry standard for pharmaceutical cost containment, efficient pharmacy benefit administration, and improved access to quality medications. Unlike other prior authorization programs, this program uses a highly sophisticated clinical rules system, in conjunction with drug and medical claims data, to help pharmacists determine the appropriateness of dispensing certain medications to patients. It also streamlines the prior authorization process for all stakeholders -- physicians, pharmacists, recipients, and payors -- and adjudicates prior authorization requests online in real time.
To detect fraud and abuse in healthcare programs, Heritage employs an audit staff of registered pharmacists, clinical pharmacists, systems analysts, and investigators. As a result of the audits, Heritage's clients have recovered millions of dollars and built over 100 cases for prosecution.
Heritage also offers disease management programs that educate and engage physicians and pharmacists treating healthcare recipients about best-practice solutions, to achieve medical cost savings, and quality improvement for both patients and healthcare agencies.
"The recent growth in our client base and product portfolio positioned Heritage as a natural fit with ACS and its offerings," said John D. Tripodi, RPh, President and CEO of Heritage. "We are honored to now be associated with ACS and its superior management team, and we look forward to continuing to exceed the expectations of our current and future clients."
ACS is a national leader in providing business process outsourcing and information technology solutions to commercial and government healthcare organizations. In the commercial arena, ACS supports eight of the top ten Blue Cross/Blue Shield companies, and processes transactions for nine of the top ten U. S. health plans, a total of 230 million claims annually. ACS provides state healthcare organizations with program administration services, offering a full spectrum of systems and complementary services through an integrated solution. From care management solutions and child health programs to pharmacy benefits management and traditional Medicaid fiscal agent services, ACS has a proven track record and extensive program management expertise. ACS is also a pioneer in fraud and abuse protection and other cost containment methodologies, and is known for its collaborative approach to client relationships that produce results over the long-term. ACS supports 29 states with government healthcare programs including processing 400 million Medicaid claims annually, totaling more than $50 billion in payments. As the nation's largest government program pharmacy benefits administrator, ACS serves 21 programs in 18 states with drug expenditures totaling over $13 billion.
ACS, a Fortune 500 company with more than 40,000 people supporting client operations in nearly 100 countries, provides business process and information technology outsourcing solutions to world-class commercial and government clients. The company's Class A common stock trades on the New York Stock Exchange under the symbol "ACS". ACS makes technology work. Visit ACS on the Internet at http://www.acs-inc.com/ .
The statements in this news release that do not directly relate to historical facts constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties, many of which are outside the Company's control. As such, no assurance can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Factors could cause actual results to differ materially from such forward-looking statements. For a description of these factors, see the Company's prior filings with the Securities and Exchange Commission, including the most recent Form 10-K. ACS disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future event, or otherwise.
ACS, Inc.CONTACT: investor relations, Warren Edwards, Executive Vice President-Chief Financial Officer, +1-214-841-8082, or warren.edwards@acs-inc.com , ormedia, Lesley Pool, Senior Vice President-Chief Marketing Officer,+1-214-841-8028, or lesley.pool@acs-inc.com , both of ACS, Inc.
Web site: http://www.acs-inc.com/
