SOURCE: Panacea Healthcare Solutions, LLC

February 19, 2008 18:59 ET

Panacea Healthcare Solutions Announces Zero-Base Approach to Hospital Pricing and CBIZ Partnership

New Solution Helps Hospitals Restructure Prices to Make Them Rational, Competitive and Compliant; CBIZ to Add Consulting Service Support to New Initiative

TAMPA, FL--(Marketwire - February 19, 2008) - Panacea Healthcare Solutions, LLC and CBIZ KA Consulting Services, LLC announced their Hospital Zero-Based Pricing solution to assist hospitals in restructuring their prices to be more rational in this era of consumer awareness.

"For years, hospital prices, unlike the airline industry, have been structured to optimize reimbursement and subsidize shortfalls realized from underpayments by certain payers," said Frederick Stodolak, CEO of Panacea. "With healthcare consumers paying more out of pocket today and federal and state initiatives underway making hospital prices public, there is increased scrutiny of these prices. It is not uncommon, however, for a hospital to have items in its charge master that clearly consume similar resources yet have quite different prices -- a practice which consumers and government officials have often found difficult to accept."

"In an attempt to resolve pricing issues, in recent years, many hospitals began to evaluate and adjust their prices utilizing market area benchmarks," said Mr. Stodolak. "The integrity of these benchmarks -- given historical price optimization practices -- has been compromised."

By deploying the company's Hospital Zero-Base Pricing program, similar to a zero-base budgeting approach, hospitals can re-justify each line item price in their charge master based on actual or estimated unit cost and give adequate consideration for overhead, uncompensated care, profit margin, adequate consideration for payer contract terms, fee schedule amounts and market prices.

Mr. Stodolak also announced that Panacea has partnered with CBIZ KA Consulting Services, LLC to provide expert consulting support.

"CBIZ has more than twenty years of experience in hospital financial consulting and they have a stellar track record for customer service and expertise in hospital pricing and reimbursement," stated Mr. Stodolak. "They are fully qualified to support this exciting new program and bring with them the invaluable data mining, benchmarking and comparative pricing information needed to successfully implement zero base pricing."

"We look forward to working with Panacea to offer hospitals a responsive solution regarding reasonableness of hospital prices," said Samuel Donio, President of CBIZ KA Consulting's healthcare financial consulting group. "Brining together Mr. Stodolak's nationally recognized expertise on hospital pricing and combining it with our extensive provider data warehouse provides us with the ability and technology to effectively establish new prices for our clients."

ABOUT PANACEA

Panacea Healthcare Solutions, LLC with offices in Florida and New Jersey, provides expert financial and information technology advice and systems to healthcare providers, payers, and software companies.

ABOUT CBIZ, Inc.

CBIZ, Inc. provides professional business services that help clients better manage their finances, employees and technology. As the largest benefits specialist, one of the largest accounting, valuation and medical practice management companies in the United States, CBIZ provides its clients with integrated financial services which include accounting and tax, internal audit, Sarbanes-Oxley 404 compliance, merger and acquisition advisory, and valuation. Employee services include group benefits, property and casualty insurance, payroll, HR consulting and wealth management. CBIZ also provides information technology, hardware and software solutions, government relations, healthcare consulting and medical practice management. These services are provided throughout a network of more than 140 Company offices in 34 states and the District of Columbia.

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