SOURCE: Avisena

October 23, 2007 14:11 ET

Avisena Announces More Than 45 Percent Year-Over-Year Increase in Revenues for Third Quarter 2007

Ambitious Expansion, Technology Investment and Economies of Scale All Contribute to Improvement in Company Performance

MIAMI, FL--(Marketwire - October 23, 2007) - Avisena, Inc., (www.avisena.com), a revenue cycle management (RCM) company servicing the health care industry that offers a proprietary, Internet-based technology platform, announced significant improvements in virtually all of the company's key performance metrics for the third quarter of 2007. Q3 of 2007 represents the nineteenth consecutive quarter of growth for the six-year-old company.

Avisena is well on track to deliver a fifth consecutive year with greater than 50 percent growth in revenues and gross profits. These impressive metrics can be attributed to greater sales force productivity and a 95 percent client retention rate, bringing financial performance and growth rates that far exceed MGMA benchmarks.

"The Avisena business model, which combines world-class Internet-based revenue cycle management software with human touch service, is quickly becoming the de-facto standard that enables doctors to practice medicine and get paid for what they do," said Albert Santalo, Avisena President and CEO, adding that "by delivering our offerings in a Software as a Service (SAAS) model, we address major deficiencies inherent in traditional packaged software. The reimbursement landscape is constantly changing, providers shouldn't worry about constantly updating their systems or making a large investment in software that can rapidly be made obsolete."

Avisena and its peers, including Athenahealth, are gaining market share in this $25B market segment from traditional medical billing companies and providers of billing software packages.

"Increasing competitive pressures are impacting the traditional RCM companies," said Santalo. "Physicians and administrators are demanding dynamic Internet-based integrated solutions designed to attack the highly-complex and ever-changing task of collecting from payers. Traditional methods are not keeping up."

Avisena has invested millions in R&D to develop its patent-pending business solution while others are left bound by the constraints of traditional billing software. Most software packages were originally designed with single medical practices in mind and could not provide the robust functionality required by a large RCM provider. Avisena practices are experiencing a greatly enhanced first-time claim resolution rate, thus minimizing the inefficient rework that plagues the industry.

"Considering the company's current contracted business and anticipated contribution from new clients, we expect to achieve between 60 percent and 80 percent revenue growth in 2008," added Santalo. "Furthermore, we plan to once again double the size of our sales force in 2008 to launch new markets and increase penetration of existing ones."

Avisena currently does business in eight states and plans to expand its geographic coverage in 2008. What's more, new product introductions are planned for next year, which will generate new revenue streams for the company.

"Physicians and administrators are learning that the growing $2.1 trillion dollar U.S. health care system isn't getting any easier to navigate. The continuing challenges and complexities of dealing with managed care and the Medicare and Medicaid programs have motivated health care providers to leave it to the professionals -- jettisoning the do-it-yourself approaches of the past," Santalo concluded.

About Avisena:

Avisena is a revenue cycle management company that helps medical practices improve collections through the use of its Internet-based technology and practice management expertise. By streamlining front and back office processes, Avisena helps medical practices Collect More, Spend Less and Live Better.

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