SOURCE: HC Innovations, Inc.

May 14, 2007 08:30 ET

HC Innovations, Inc. Signed a 3 Year Contract for the State of Illinois Medicaid Recipients

Company to Provide Innovative Nursing Home Care to Over 8,000 Medicaid Recipients to Improve Care and Reduce Illinois Medicaid Costs

SHELTON, CT -- (MARKET WIRE) -- May 14, 2007 -- HC Innovations, Inc. (OTCBB: HCNV) today announced it has entered into a three-year contract to provide care management to over 8,000 Medicaid recipients living in nursing homes in the State of Illinois. HC Innovations will provide this care management through Enhanced Care Initiatives, Inc. (ECI), its wholly-owned subsidiary.

"We believe the program with the State of Illinois through the state's Your Healthcare Plus disease management program is truly innovative," said HC Innovations Chairman & CEO David Chess, MD. "It is the first time that a state Medicaid department has implemented a specific care management program for their nursing home enrollees. This is an amazing opportunity to improve care and the quality of life for these residents while reducing costs for the State of Illinois."

HC Innovations will provide services through Your Healthcare Plus, a comprehensive disease management program that helps Illinois Medicaid beneficiaries manage chronic illnesses such as asthma, coronary artery disease, heart failure, chronic obstructive pulmonary disease, diabetes and other chronic conditions. HC Innovations anticipates that revenue from this contract will be recognized in its current quarter.

Services include providing programs and systems for assisting physicians in the management of patients who are frail or who face medically complex conditions or mental impairment. Nurse practitioners will be on site to provide hands-on disease management and care coordination and discharge planning in collaboration with patients' physicians and nursing home medical directors.

About HC Innovations

HC Innovations seeks to create value and cost savings for HMOs, nursing homes, and insurance companies (government and private) by identifying niche markets with high medical costs and implementing proprietary solutions to help control those costs. HC Innovations combines proprietary state-of-the-art information systems with highly trained nurses and nurse practitioners to improve health conditions with hands-on care. The results are improved patient outcomes and a dramatic reduction in care costs. HC Innovations currently provides services for Medicare, Medicaid, sub-acute care and specialty-needs programs in Connecticut, New Jersey, Tennessee, Texas, Florida, Ohio, Illinois and Massachusetts. For more information, visit www.hcinnovationsinc.com.

Forward-Looking Statements

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"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include the Company's entry into new commercial businesses, the risk of obtaining financing, recruiting and retaining qualified personnel, and other risks described in the Company's Securities and Exchange Commission filings. The forward looking statements in this press release speak only as of the date hereof, and the Company disclaims any obligation to provide updates, revisions or amendments to any forward looking statement to reflect changes in the Company's expectations or future events.

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