thelma - a global health network engine

Extracted from Health Transaction Network website. A very interesting read.

ICSGlobal Limited (ICS) has signed a Letter of Intent with Health Transaction Network Corporation (HTN), for it's THELMA technology to be licensed to become the backbone of the first national shared electronic Health Transaction Network in the United States , the world's largest healthcare system with an estimated 30 billion healthcare transactions.

Under the terms of the Letter of Intent, ICSGlobal and HTN will aim to complete the Definitive Agreement by 14 December 2004, with the Health Transaction Network going live in the first quarter of 2005.

HTN selected THELMA ahead of virtually every other major technology vendor in North America that had approached HTN to develop the Health Transaction Network, for the simple reason that THELMA is existing, proven infrastructure in Australia and is currently being rolled out in the UK . THELMA only requires basically cosmetic tailoring to suit the US health system.

The US Health Transaction Network will make use of THELMA's existing eligibility and claiming transactions, as well as incorporate world-first biometric identification technology developed by the University of Buffalo, New York, which electronically correlates a patient's fingerprint and signature to uniquely identify each patient and unlock all the benefits and services delivered by the Health Transaction Network and its participating health insurers and healthcare providers .

THELMA will also be used to enable electronic settlement of claims and co-payments through the Health Transaction Network. Functioning similar to the electronic banking / ATM networks in the banking industry, all claims and payments will be initiated at the time of care with a HealthTransaction card, which is issued by health insurers to their members. Similar to a consumer bank card, this innovative health card will carry basic health benefits information necessary to authorise and facilitate the completion of electronic claim/payment transactions as part of the US Government's recent “Consumer Driven Healthcare” (CDH) initiative.

Together these technologies and transactions will make the Health Transaction Network the most sophisticated and comprehensive of its kind in operation in the world. Under the license arrangements, ICSGlobal will be able to market any of the technologies and innovations in the US Health Transaction Network to other members of THELMA's growing global customer base.

T he transaction with HTN represents the ultimate opportunity for ICSGlobal to leverage its THELMA platform into the world's largest healthcare system with virtually no capital e xpenditure or marketing spend for ICSGlobal .

Inefficiencies in the US health system have recently been acknowledged at the highest levels in the US . President Bush in April challenged the health care industry to reduce paper work and go digital to control costs and reduce errors. HTN have also received solid support from the US health industry, with letters of intent from two hospital groups, two doctors groups and two insurers, one of them HealthNow New York, a member of Blue Cross Blue Shield, the largest health insurer in the US with 94 million members.

According to Mr James A. Cardone, Executive Vice President and Chief Financial Officer of HealthNow New York , something's got to be done now.

“The way the system works now, it's pretty archaic in the grand scheme of things. It's great news that Health Transaction Network and ICSGlobal will have a solution for us early in the new year, and we're excited about participating in this important initiative” said Mr Cardone.

Mr Joseph E. Wolfson, the President and Chief Executive Officer of Health Transaction Network Corporation, says the THELMA licensing deal with ICSGlobal represents the last piece of the Transaction Network jigsaw that he had to bring together.

“The fact that we can now commence implementation of the Transaction Network literally within weeks, instead of building something from the ground up, was very attractive to us, and will give us a very powerful first mover advantage in the US , which from my experiences in electronic banking is important. With the support and the encouragement we've received from the health industry and the US Government, we're confident we can march this right across the US ”, said Mr Wolfson.

“Another factor which cemented the decision for us to run with THELMA was that the technology has been proven and stabilised in Australia over the past three years, is currently being rolled out in the UK, and dialogue is underway with other countries including France, Japan and Turkey to use it. The fact that the US will be connecting into an existing global health transaction network is a powerful selling point for us here, and we're very excited about getting involved in what we feel is a truly global initiative” added Mr Wolfson.

ICS Global Managing Director Tim Murray said th at it seems like everything ICSGlobal has done over the past four years has been in preparation for entering the US market.

“ When HTN shared their strategy with us, it was virtually a perfect alignment with our own. I'm delighted for our shareholders that what they have invested in building over the past four years is as close to a perfect fit with what is needed in the US as you could get. After my time in New York I have a very good feeling about teaming with HTN. This is as big as it gets for us ” said Mr Murray.