SOURCE: American CareSource

January 31, 2007 06:00 ET

American CareSource Holdings, Inc. Announces New Client Agreement

DALLAS, TX -- (MARKET WIRE) -- January 31, 2007 -- American CareSource Holdings, Inc. (AMEX: XSI) announced today that its Ancillary Care Services subsidiary has signed a Client Service Contract with Health eConnex to provide ancillary care services to Health eConnex's PPO and payor client base. Health eConnex (HeC) is a leading outsourcing service provider of mission-critical electronic data interchange (EDI) and e-commerce enabling technologies. With a broad spectrum of clients, HeC is a proven cost-effective service provider for all data forms and EDI transactions.

Health eConnex and American CareSource Holdings, Inc. (ACS) will partner to provide a broad range of ancillary care services to HeC payor clients through the ACS network of ancillary care providers. ACS expects that this new relationship will increase annual revenue by approximately $3.5 million dollars once it has been fully implemented. The company expects to implement the agreement within the next 30 to 60 days.

"Working with ACS will bring significant value to our payor and employer clients," stated Thomas Stateman, president of HeC. "With our electronic routing capabilities, we can identify any possibility where ACS will provide the best reimbursement to medical providers in a seamless and instantaneous basis for our clients. We constantly strive to bring additional value to our clients and ACS is a perfect match."

About American CareSource Holdings, Inc. (ACS)

American CareSource Holdings, Inc., the first national, publicly traded ancillary care benefit management company, is a comprehensive ancillary care service provider offering a national network of more than 22,000 ancillary providers. The ACS ancillary network and management provides a complete outsourced solution for a wide variety of healthcare payors and plan sponsors including self-insured employers, indemnity insurers, PPOs, HMOs, third party administrators and both the Federal and local governments. Through its product offerings, American CareSource Holdings, Inc. helps its clients reduce the cost of ancillary benefits rendered through its network of ancillary care providers in more than 30 service categories.

About Health eConnex (HeC)

Health eConnex is a leading outsourcing service provider of mission-critical electronic data interchange (EDI) and e-commerce enabling technologies for the healthcare industry. Throughout its history, HeC has been an innovator in electronic transmissions between medical providers, intermediaries and payors. HeC can accept paper, fax or electronic documents of all types and transform them into electronic documents that its client can download effortlessly into their data systems. HeC also provides data routing to interim business partners to help its payor clients avoid costly downloads of information from various sources in the payment cycle. HeC currently services a broad spectrum of clients throughout the country in both the group health and workers compensation industries.

Any statements that are not historical facts contained in this release are forward-looking statements particularly those statements related to potential annual billed revenue under the client implementation and the number of additional payors that may be added to the company's network. It is possible that the assumptions made by American CareSource Holdings, Inc. for purposes of such statements may not materialize. The client for which services are to be provided may terminate its agreement, providers may withdraw from the company's program or other factors may affect the ability of the Company to recognize any revenue in connection with their relationship. Such statements may involve further risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, and intellectual property rights, and the outcome of competitive products, risks in product development, the results of financing effort, the ability to complete transactions, and other risks identified in this release, and the Securities and Exchange Commission filings of American CareSource Holdings, Inc.

Contact Information

  • Contact:
    Wayne A. Schellhammer
    Chairman & Chief Executive Officer
    American CareSource Holdings, Inc.
    Tel. 972-308-6830