MedAvant Joins with Bloodhound for New Service

Groundbreaking Partnership Allows for Real-time, Pre-receipt Clinical Code Editing

Atlanta, GA– (Prime Newswire) – July 19, 2007 – MedAvant Healthcare Solutions (MedAvant) (NASDAQ: PILL), a leader in healthcare technology and transaction services, today announced a groundbreaking partnership with Bloodhound Technologies that allows for real-time, pre-receipt clinical code editing of healthcare claims.

"Combining our Phoenix™ real-time technology, which can process a claim in less than a second, with Bloodhound’s clinical code editing expertise revolutionizes the way claims move through the healthcare system and improves efficiencies for everyone involved," said John Lettko, MedAvant President and Chief Executive Officer.

"Never before have claims been edited through a clearinghouse in sub-second response time," said Gary Twigg, President and Chief Executive Officer of Bloodhound. "This offering represents a strategic shift in the way claims are edited and processed. The benefits to all parties in the claims cycle position MedAvant with a functionally superior offering over its competitors."

Healthcare providers must code claims before submitting them for reimbursement. Receiving claims that are miscoded can create bottlenecks with an insurance company’s payment system, and miscoded claims can result in overpayments. With MedAvant and Bloodhound editing the clinical codes before a payer receives them, overpayments are avoided. The provider also receives feedback more quickly so the claim can be corrected and resubmitted faster, resulting in faster reimbursement.

The partnership integrates Bloodhound’s ClaimsGuard ASP based clinical claims editing solution with MedAvant’s Phoenix system. The offering is available to MedAvant’s clearinghouse customers and customers of the National Preferred Provider Network (NPPNTM), MedAvant’s Preferred Provider Organization.

Clients can choose a set of edits based on standard sources such as the American Medical Association and the Center for Medicare and Medicaid Services. These edits can be customized to exactly match payer reimbursement policies and exceptions as they occur across lines of business, geography, and providers. A full audit trail with all edit information is available through MedAvant’s portal.

Clinical code editing powered by Bloodhound is one part of MedAvant’s new front-end solutions for payers. Other services include single-source claim aggregation, checking for duplicate claims, editing for technical issues such as HIPAA compliance, verifying insurance eligibility, screening for fraud and abuse, and business intelligence through web-based data analytics.

About MedAvant Healthcare Solutions
MedAvant provides information technology used to process transactions within the healthcare industry. MedAvant offers electronic claims processing to healthcare providers, a Preferred Provider Organization called the National Preferred Provider Network (NPPNTM) and remote reporting solutions for medical laboratories. To facilitate these services, MedAvant operates Phoenix™, a highly scalable platform which supports real-time connections between healthcare clients. For more information, visit www.medavanthealth.com. MedAvant is a trade name of ProxyMed, Inc.

About Bloodhound Technologies
Bloodhound Technologies provides claims editing and business analytics services to all participants in the claims revenue cycle. Bloodhound's claims editing service can process a claim against 16 million edits across total patient history in sub-second response time. All edits are open-sourced and based on national standards and can be filtered to exactly match a payer's reimbursement policies.