VisualMED Clinical Solutions Corp.

VisualMED Clinical Solutions Corp.

March 07, 2005 18:46 ET

VisualMED Clinical Solutions Corp.: Announcement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: VISUALMED CLINICAL SOLUTIONS CORP.

OTC Bulletin Board, NASDAQ SYMBOL: VMCS

MARCH 7, 2005 - 18:46 ET

VisualMED Clinical Solutions Corp.: Announcement

MONTREAL, QUEBEC--(CCNMatthews - March 7, 2005) - VisualMED Clinical
Solutions Corp. (NASDAQ:VMCS)(OTCBB:VMCS)



United States government moves to support paperless hospital
initiatives.

Significant funding to come from both the White House and congress.

Positive global response expected from U.S. leadership


VisualMED Clinical Solutions Corp. (NASDAQ:VMCS)(OTCBB:VMCS) announces
that it has refocused some of its marketing strategies, to take
advantage of recent policy developments in Canada, France, Great
Britain, and especially in the United States. Major funding initiatives
are underway to encourage hospitals to move into the digital age.

"We have increased the pace of teaming with strategic allies to take
advantage of some of the larger government-backed projects that are
being contemplated by various national and local authorities," says
Chairman and CEO Gerard Dab.

There is evidence that a large mobilization is underway across the U.S.
to ensure proper funding and standards for the transition from
paper-based medicine to computerized physician order entry (CPOE) and
the electronic medical record (EMR) (New York Times; Feb. 19, 2005).

Across the ideological spectrum, health care experts and politicians
agree that the hodgepodge of paper-based medical files needs to move
into the digital era, so that eventually each person has an electronic
medical record that can travel across networks and be read remotely by
doctors, hospitals, insurers and the patients themselves. Doing so, the
thinking goes, would reduce medical errors, improve health care and save
money (NY Times; Feb. 19, 2005).

In the United States, President Bush continues to urge the adoption of
hospital informatics with a new White House initiative of 125 million
dollars. The President's Health Information Czar, Dr. David J. Brailer,
has recently warned the healthcare industry that the U.S. government
considers this a critical issue and will impose measures if the industry
does not take concrete steps to move itself into the digital age.

Reps. Charlie Gonzalez (D-Texas) and John McHugh (R-N.Y.) introduced
legislation aimed at encouraging greater adoption of health information
technology.

Under the National Health Information Incentive Act of 2005, HHS would
be authorized to fund healthcare providers -- through grants, revolving
loans and tax credits -- to purchase IT systems. It also would provide
incentives, such as add-on Medicare payments, to providers who use
technology to improve patient care (www.modernphysician.com; Feb. 14,
2005).

A group of governors last week called on Congress to establish a
National Health Care Innovations Program that would support large-scale
demonstration programs in five areas, including the use of information
technology to improve health care. A white paper which was released at
the National Governors Association winter meeting in Washington, D.C.,
calls for state-led partnerships between the government and the private
sector.

President Bush has called for widespread deployment of health
information technology within 10 years to realize substantial
improvements in safety and efficiency. President Bush has stated that he
is committed to the use of advanced software for preventing medical
errors, which he repeated during a recent visit to the Cleveland Clinic,
and during his February 2nd State of the Union Address.

President Bush has announced that the White House will propose $125
million in federal spending in next year's budget to test
computerization of health records. The government spent $50 million on
this in 2004, and has asked Congress to double that amount for 2005.
Among other measures that favour general progress in modernizing
medicine, the National Institute of Health (NIH) budget has been doubled
for 2005.

In concert with new federal initiatives, former House Speaker Newt
Gingrich has laid out important markers toward an "intelligent health
system for the 21st century. These include:



- A secure, Web-based networking infrastructure.
- Physicians, hospitals and medical personnel using interoperable
electronic medical records.
- Web-based electronic medical records for every American, beginning
with seniors enrolling in Medicare as of Jan. 1, 2005. Everyone
would have a health record that they and their clinicians can
access electronically from anywhere at any time.
- Medicare and financial incentives to encourage doctors to adopt
clinical systems and prescribe electronically.
- Mandatory use of EMRs by physicians at some point during the next
10 years.


Rep. Patrick Kennedy (D-R.I.) has said he plans to introduce
Gingrich-backed legislation to implement a paperless health care system
by 2015.

There are currently eleven different organizations in the United Sates
dedicated to promoting healthcare information technology innovation and
improvement, most notably with respect to widespread development and
acceptance of an Electronic Medical Record.

In Canada, the federal government is preparing to legalize
e-Prescriptions, until now illegal for security reasons. Since the
improvement of security protocols in healthcare information
technologies, the government is set to table legislation sometime this
year. Surveys show that the number one issue for Canadian citizens is
the current state of the healthcare system. There are several
organizations dedicated to promoting the electronic modernization of the
healthcare system as a means to reducing cost, increasing quality of
care, and cutting down waiting lists for surgery. Chief among these is
the Canada Health Infoway, a Crown Corporation with more than one
billion dollars destined to support efforts in connectivity and
interoperability within the healthcare network.

VisualMED is actively working with numerous partners to find ways to
unlock some of these considerable federal and provincial funds nominally
earmarked for healthcare information technology. These initiatives could
prove to be an important source of guaranteed contracts and revenues for
companies like ours.

In Europe, the Company is in negotiations with a number of leading
systems integrators and consulting firms involved in building,
renovating and managing hospitals. New French legislation has mandated
the implementation throughout the French healthcare system of a
universal Electronic Patient Record.

In Great Britain, VisualMED is looking to its new European partners to
help the Company access some of the projects that are currently being
planned by the British National Health Service. This effort is being
supported by a 10 billion pound budget managed by British Telecom's
integration subsidiary Syntegra

In Tunisia, Sonotec S.A.R.L., one of North Africa's leading medical
equipment companies, is helping VisualMED in a pilot project to
implement the VisualMED solution at Habib Thameur University Hospital.
We believe there are over twelve modern private hospitals in Tunisia
that provide elective surgery to European patients.
While we gear up for major projects
(http://yahoo.brand.edgar-online.com/doctrans/finSys_main.asp?formfilenam
e equals 0001002014-05-000130&nad) the Company continues to pursue a
select clientele of small affluent private hospitals, as evidenced by
the recent contract in Battle Creek, Michigan
(http://biz.yahoo.com/bw/050209/95752_1.html).

About the Company and its Products

The VisualMED Clinical Information System (CIS) is a unique software
application built to conform to the way doctors and nurses provide and
document patient care. The VisualMED CIS is the only solution of its
kind to have been wholly designed by practicing medical staff in terms
of both workflow and user interface.

There are over 5,500 hospitals in the United States and Canada, and
three times as many in Europe, making up most of the potential market
for the VisualMED technology. According to the Leapfrog Group,
relatively few American sites have experimented with physician-based
clinical support order entry, and most of these have been limited to
large centers whose mainframe technology is not easily transferable.
According to the HIMSS, less than 10% of hospitals say that they have
some form of CPOE or decision support.

Cost of implementation of a Clinical Information System can vary between
2 and 20 million dollars depending on the size of the hospital and the
nature of the selected technology. A leading U.S. consulting
organization believes that 50% of hospitals in America will be moving to
CPOE in the next 4 years.

Management believes in a more cautious scenario, one that would see
between 10 and 15% of hospitals adopting CPOE within this time frame.
This would still represent a multi-billion dollar market opportunity for
our industry.

VisualMED Clinical Solutions Corp. is a leading provider of clinical
informatics solutions that help hospitals and healthcare authorities
reduce medication errors, increase personnel efficiency and bring down
operating costs. One of its key components, Computerized Physician Order
Entry (CPOE), is a core solution in the new agenda to promote greater
patient safety and reduce the morbidity and mortality associated with
medication error.

Detailed information on our company and its products is available on our
web site at www.visualmedsolutions.com.

Forward-Looking Statements

Except for historical information provided herein, this press release
may contain information and statements of a forward-looking nature
concerning the future performance of the Company. These statements are
based on suppositions and uncertainties as well as on management's best
possible evaluation of future events. Such factors may include, without
excluding other considerations, fluctuations in quarterly results,
evolution in customer demand for the Company's products and services,
the impact of price pressures exerted by competitors, and general market
trends or economic changes. As a result, readers are advised that actual
results may differ from expected results.

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