TriZetto’s New QNXT Configuration Solution Enables Healthcare Payers To Rapidly Change, Launch Products For Success In Post-Reform Market

TriZetto announced the general availability of an integrated technology solution and advisory service that automates and accelerates ongoing configuration and migration tasks for healthcare payer customers of the company’s QNXT TM core administration system. Some 70 health plans use TriZetto’s QNXT system to administer the benefits of approximately 20 million Americans.

The new QNXT Configuration Solution enhances the ability to configure the QNXT platform for new lines of business, new plan designs, and federal and state mandates. Over the past few months, TriZetto has worked with the Hawaii Medical Service Association (HMSA) to jointly develop the QNXT Configuration Solution.

An independent licensee of the BlueCross and BlueShield Association, HMSA covers more than half of Hawaii’s population and is a longstanding QNXT customer.

“We anticipate TriZetto’s QNXT Configuration Solution will automate workflow and simplify configuration build processes that are manual today. With this solution, we will greatly reduce keying in configuration data as well as the data-entry errors that can happen as a result,” said HMSA senior manager Marsha Magnussen.

“Certainly, health plans choose TriZetto’s QNXT system because it’s a single-system solution that streamlines enrollment, premium billing, claims processing, customer service and other administrative functions,” said Tom Kearns, senior vice president of consulting services at TriZetto. “But they also choose this platform because it offers flexibility and scales to address changing business requirements. The QNXT Configuration Solution helps ensure that our customers can scale fast, frequently and with fewer manual touches.”

With the Affordable Care Act (ACA), HMSA had to modify hundreds of plans to meet federal requirements for preventive screenings and other medical services. The payer also had to stand up more than 30 ACA-compliant gold, silver and bronze plan options for Hawaii’s state benefits Exchange. TriZetto’s new configuration solution should enable HMSA and other healthcare payers to modify current benefit plans and launch new plan designs in hours instead of days, and days instead of weeks.

“We expect TriZetto’s QNXT Configuration Solution to improve our speed-to-market and flexibility, and we need both to efficiently respond to healthcare reform,” said Linda Katagiri, senior vice president for Member Services at HMSA. “The number of reform mandates – today and for the foreseeable future – makes TriZetto’s solution indispensable for HMSA. With the QNXT Configuration Solution, we will be able to deploy full solutions to test environments and test more thoroughly using Claims Test Pro. We can then move those tested solutions to production, ensuring quality, which ultimately leads to happy customers.” 

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Cognizant to Acquire TriZetto - Creating A Fully-Integrated Healthcare Technology And Operations Leader

Cognizant (NASDAQ: CTSH), a global leader in information technology, consulting and business process services, today announced that it has entered into a definitive agreement to acquire TriZetto Corporation for $2.7 billion in cash, subject to customary adjustments. Based in Englewood, CO, privately-held TriZetto is a leading provider of healthcare IT software and solutions.

"Healthcare is undergoing structural shifts due to reform, cost pressure and shifting responsibilities between payers and providers. This creates a significant growth opportunity, which TriZetto will help us capture," said Francisco D'Souza, CEO of Cognizant. "We are excited that the integrated portfolio of capabilities across technology and operations will uniquely position us to help clients drive higher levels of operational efficiency, while re-imagining care for the future. We look forward to welcoming the TriZetto team into the Cognizant family and creating a truly differentiated and sustainable foundation for healthcare."

Cognizant expects this acquisition to accelerate significantly its market position and strategy of delivering innovative healthcare software and solutions to a wide range of healthcare clients. TriZetto and its 3,700 employees will be a part of Cognizant's existing healthcare business, which currently serves more than 200 clients, including 16 of the top 20 U.S. health plans and four of the top five pharmacy benefit management companies. Healthcare currently represents approximately 26 percent of Cognizant's revenue.

"TriZetto solutions enable the healthcare interactions of millions of people in the U.S. every day," said Jude Dieterman, President and COO of TriZetto. "Our agreement with Cognizant advances our vision of simplifying healthcare for everyone. We believe the combination of Cognizant and TriZetto's talented employees and innovative technology and operations will have a meaningful impact on the way health is managed and care is delivered."

"Cognizant and TriZetto have had a long-term relationship, having jointly served a number of healthcare clients to date," said Gordon Coburn, President of Cognizant. "This acquisition is a natural fit for us. It represents a great opportunity to integrate services across our three horizons—traditional IT services; high-growth businesses such as management consulting, business process services and IT infrastructure services; and emerging delivery models—and provide even greater value to our clients."

"The transaction is expected to be immediately accretive to Cognizant's non-GAAP EPS, excluding one-time transaction costs and adjustments," said Karen McLoughlin, CFO of Cognizant. "That earnings benefit is expected to increase over time as we realize significant revenue synergy potential from the combination of these businesses."

Cognizant intends to finance the transaction through a combination of cash on hand and debt, and has secured $1 billion of committed financing in support of the transaction. The transaction is expected to close in the fourth quarter of 2014. The purchase agreement provides for customary closing conditions and purchase price adjustments including, without limitation, adjustments for items such as cash, indebtedness and working capital.

Cognizant was advised by Credit Suisse, UBS Securities LLC and Centerview Partners. Legal counsel to Cognizant was provided by Latham & Watkins LLP and Nishith Desai Associates. TriZetto was advised by JP Morgan Securities LLC and Goldman, Sachs & Co. Legal counsel to TriZetto was provided by Kirkland & Ellis LLP.

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BayCare Health System Recognized for Achievement in Electronic Medical Record Adoption by Leading Global Organization

BayCare Health System's progress in adopting an electronic medical records (EMR) system was recognized by the Healthcare Information and Management Systems Society (HIMSS), a global organization known for thought leadership on improving health care through information technology (IT).

Electronic medical record systems can improve patient care, increase patient safety, enhance medication safety and increase efficiency. BayCare Health System reached Stage 6 of 7 in the EMR Adoption Model developed by HIMSS Analytics, a non-profit subsidiary of HIMSS, that collects and analyzes health care data. The adoption model identifies and scores hospitals using an eight-step scale (0-7) that charts the path to a fully paperless environment. Less than 20 percent of U.S. hospitals and health systems tracked by HIMSS Analytics have reached Stage 6 as they convert to a fully automated/paperless medical records system. The ten BayCare hospitals recognized