POST FALLS, ID Apr 18, 2001 Medinex Systems, Inc. (NASDAQ-NM: MDNX), a healthcare technology and e-commerce company, today announced that it has developed a secure electronic messaging system for medical records. The Web-based messaging system, called MxSecure, provides a secure environment in which doctors, patients and other health professionals can communicate with each other. Medinex Systems has filed a patent application on the unique technology.
By providing for the electronic exchange of medical messages, the system improves the efficiency and quality of patient care. MxSecure is expected to provide significant cost savings to healthcare providers by streamlining cumbersome communication systems. MxSecure allows healthcare professionals to exchange lab results, refer patients, schedule appointments, request patient status, resolve billing questions, and perform further interaction with other providers, in addition to communicating directly with patients.
It also helps providers meet the strict requirements of the Health Insurance Portability and Accountability Act (HIPAA), which Congress passed in 1996. The Department of Health and Human Services (HHS) in December issued the final privacy regulations, which present a sweeping new set of legal requirements applicable to the use and disclosure of individual health information by health care providers, health plans, health care clearinghouses, employers and other parties providing services to those entities. The Bush administration announced recently that it would enforce the HHS regulations, with which the healthcare industry has two years to comply.
"Millions of people use e-mail as a daily form of communication and patients are beginning to demand the convenience of e-mail in communicating with their healthcare providers and insurers," said Tony Paquin, Medinex chairman, president and CEO. "Because the vast majority of e-mail ultimately reaches a destination that is insecure, broad use of current e-mail systems would violate HIPAA. MxSecure solves that problem by transferring medical record data to a secure environment in an efficient, effective manner."
Benefits of the MxSecure system include:
Convenient integration with existing e-mail systems; accessible from any Web-based computer in the world Assurance that medical record-related communication remains in a secure environment No technical expertise required on the part of the users No cost to patients and very low cost to healthcare providers Dramatic improvements in the efficiency and effectiveness of patient/provider communications
In a recent survey by Harris Interactive, 14% of physicians reported using email to send patient specific clinical information. Another 39% said they do not do so now but say they would do so "if the security and privacy of e-mails were guaranteed."
The MxSecure messaging system is fully integrated into the Medinex Office management system. In addition to creating the opportunity for patient-physician communication, it is also designed to handle electronic communication between doctors, nurses, labs, clinics, hospitals and insurance companies.
About Medinex Systems, Inc.
Medinex Systems, Inc. (www.medinexsystems.com) has offices in Post Falls, Idaho, and Atlanta, Georgia. Medinex Systems' premier product is a Web-based practice management system called Medinex Office (www.medinexoffice.com). Medinex Office is available through a growing list of value-added resellers (VARs) and application service providers (ASPs) throughout the country. Medinex Systems also focuses on business-to-business e-commerce and services in the Internet healthcare sector, and targets primary care physicians, clinics, hospitals, medical supply companies, medical students and others in the healthcare market. Its stock trades on the NASDAQ-National Market under the symbol MDNX.
This news release may contain certain forward-looking statements concerning Medinex Systems' positioning for the future. In accordance with the Private Securities Litigation Reform Act of 1995, the company advises that forward-looking statements are subject to risks known and unknown, uncertainties and other factors that could cause the company's actual results, performance, or achievements, or industry results, to differ materially from those stated or inferred by forward-looking statements. Some of these risks, uncertainties, and other factors are such things as the following: Medinex has suffered substantial cash flow deficits and may have difficulty meeting its outstanding obligations if it is unable to generate positive cash flows; Medinex has a limited operating history; Medinex may experience difficulties implementing an evolving and unproven business model; there can be no assurance that Medinex will be able to compete successfully against potential competitors who may have greater resources than Medinex; Medinex's business may be affected by a slower than expected e-commerce growth rate; Medinex' operations may be subject to computer systems interruptions that could result in loss of customers; unknown software defects could result in service interruption and damage the Company's reputation; Medinex may not compete successfully if it is unable to keep pace with rapidly changing technology and market conditions; the failure of participant's in Medinex's target communities to accept Medinex's communities as sources of information, communication and business products and services; Medinex may be subject to legal claims relating to the content of Medinex's Websites; any new legislation could inhibit the growth in use of the Internet; and the unknown volume of future sales of the company's common stock could cause the company's stock price to fall. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. All subsequent written or oral forward-looking statements attributable to the company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements included in this news release are made only as of the date of this release. The company does not intend, and undertakes no obligation, to update these forward-looking statements.
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