DST Health Solutions Helps to Eliminate Paper from Medical Practice Billing Using Business Process Management Technology

DST Health Solutions Combines BPM with Business Process Outsourcing To Help Improve Quality, Financial Results for Physician Practice Customers

BIRMINGHAM, Ala., February 9, 2006—DST Health Solutions announced today the integration of its web-enabled MDr PracticeManager™ physician practice administration solution with DST Technologies’ Automated Work Distributor™ (AWD®). With this new integration, the AWD business process management (BPM) solution has been deployed to support business process outsourcing (BPO) clients, including private practices and hospital-based physician groups. Both DST Health Solutions and DST Technologies are wholly owned subsidiaries of DST Systems, Inc.

With the new solution, DST Health Solutions can help improve revenue cycles, streamline the quality and compliance process, and reduce the volume of paperwork associated with supporting its medical practice BPO clients. Billing records can now be transmitted, received and processed by DST Health Solutions’ BPO center in electronic format for management and resolution within an automated workflow process supported by AWD.

A DST Health Solutions client already benefiting from the new solution is the Department of Emergency Medicine at the University of Alabama at Birmingham (UAB). UAB has been able to maintain operational efficiencies despite rapidly rising patient volumes thanks to DST Health Solutions’ BPO and technology improvements.

“UAB’s emergency services business volume has increased 23 percent since the move into our newly expanded facilities,” said Skip Craig, assistant to the chairman, Department of Emergency Medicine at UAB. “DST’s BPO services enabled us to support this growth while keeping administrative staff growth flat. The new combination of AWD BPM technology with MDr PracticeManager supports our goal of reducing paperwork, allowing us to get accurate bills out the door more quickly. We’re able to turn accounts faster, with fewer claims rejected by payers.”

Today, most billing records are transmitted electronically from UAB to DST Health Solutions. Paper documents that remain are scanned and converted into electronic images using AWD. “We’re working to get more information to DST electronically so that operational efficiencies can continue to increase as our emergency department business volumes grow,” said Craig.

“As we transition the administrative workload supporting all of our physician practice BPO clients over to the integrated MDr PracticeManager and AWD system, we are eliminating the manual steps involved in moving paper documents from person-to-person and replacing those with an automated process that routes work electronically based on business rules,” said Steve Sabino, president of DST Health Solutions. “It is a much more efficient and productive way to accomplish the medical coding and billing process.”

UAB is just one of 30 separate healthcare facilities that utilize DST Health Solutions’ Birmingham BPO center for physician business processing. “Our BPO clients are seeing significant business benefits from the new automated workflow processes, including better compliance, increases in claims filed electronically, a lower percentage of claims rejected upon first submission, and a reduction of days sales outstanding (DSO),” said Sabino.

DST Health Solutions provides comprehensive back-office administration services, executive decision management reporting, and access to healthcare business applications and services via the Internet for medical group practices. DST Health Solutions combines the very latest technologies—including one of the industry’s leading business process management products, AWD®—with capabilities in business process and applications outsourcing to meet the administrative needs of private medical practices and hospital-based physician groups throughout the country.

University of Alabama at Birmingham Situated among major research centers and clinics, the 908-bed UAB Hospital provides a complete range of primary and specialty care services, as well as the most up-to-date treatments and innovations in health care. As the centerpiece of the University of Alabama at Birmingham Health System, one of the nation's top 20 institutions in NIH funding, UAB Hospital is a major center for clinical research and the home of some of the top medical programs in America. As Alabama's major tertiary care center, UAB Hospital annually admits approximately 42,000 patients and records about 52,000 emergency department visits.

DST Health Solutions, Inc. delivers applications and outsourcing services that help health plans, TPAs and physician practices improve efficiency, reduce operational costs, increase speed to market and improve customer service and care management. DST Health Solutions’ enterprise applications, and ASP and BPO services support 340 healthcare clients, representing 30 million covered lives, 230 million health plan claims and 30 million physician business transactions annually.

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The information and comments above may include forward-looking statements respecting DST and its businesses. Such information and comments are based on DST's views as of today, and actual actions or results could differ. There could be a number of factors affecting future actions or results, including those set forth in DST's latest periodic financial report (Form 10-K or 10-Q) filed with the Securities and Exchange Commission. All such factors should be considered in evaluating any forward-looking comment. The Company will not update any forward-looking statements in this press release to reflect future events.

For more about DST Health Solutions, contact us at inforequests@dsthealthsolutions.com.