BASKING RIDGE, N.J.--(BUSINESS WIRE)--
Hooper Holmes (NYSE MKT:HH) and RSA Medical LLC today announced a new agreement under which Hooper Holmes' Portamedic division will become RSA Medical's exclusive, national provider of paramedical exams outside of RSA Medical's home state of Illinois. As part of the agreement, RSA Medical will become Portamedic’s exclusive provider of paramedical services in Illinois. The agreement will also give Hooper Holmes access outside of Illinois to RSA Medical's nationwide examiner network, MedLink, to augment Hooper Holmes’ own network of local health professionals nationwide.
As part of the agreement, and to support RSA Medical’s exam business in Illinois, Hooper Holmes will provide laboratory testing kits to RSA Medical and will perform billing services to life insurance companies at the request of RSA Medical when it is appropriate. Hooper Holmes will also train and equip RSA Medical’s examiners to use Hooper Holmes' iParamed e-Exam for eligible RSA Medical customers.
RSA Medical and Hooper Holmes are now integrating order processing technology and quality platforms in order to ensure the same seamless experience for customers of both companies. Work has begun to integrate Portamedic's workflow system with RSA Medical's information technology as well as the Hooper Holmes iParamed e-Exam platform for appropriate RSA Medical customers.
"This agreement is a great fit with RSA Medical's life insurance strategy because it allows us to focus on what we do best: growing our industry-leading tele-underwriting, automation and workflow technology, along with our predictive data analytics," said Rocco Salviola, President and Chief Executive Officer of RSA Medical. "And by partnering with Hooper Holmes to provide paramedical exams, testing kits and billing services, we can offer our customers a complete package of quality services when it is appropriate."
"Our technology investments and operational transformation are powering new partnerships with industry-leading medical assessment and management companies such as RSA Medical," said Dan Dodson, Hooper Holmes' Senior Vice President for Life Insurance. "RSA Medical has a well-deserved reputation as a leader in tele-underwriting and automation technology and an enviable track record in serving high volume, Internet-based life insurance marketers. We are honored to be chosen as their partner and are committed to providing them and their customers with the highest level of customer service."
Mr. Dodson continued, "Illinois is one of the most important markets for life insurance in the United States. We're delighted to have the opportunity to offer our Illinois customers the benefits of RSA's talented paramedical professionals and management team."
The two parties expect the agreement to be fully operational by January 1, 2013.
Hooper Holmes upgraded its Portamedic operations with a custom-built, Microsoft-standard workflow system in June 2012. This new system manages the data collection requirements for thousands of life insurance products and the schedules of thousands of health professionals nationwide. The new system was one element of $5 million in technology investments and upgrades announced by Hooper Holmes in 2011.
Hooper Holmes introduced the iParamed e-Exam in the first quarter of 2011 and deployed the system nationwide by September 2011. Hooper Holmes is on track to serve 15 major life insurance carriers with the iParamed platform by the end of this year. Electronic exams are important to life insurance companies because exam information is collected more accurately and can be used more efficiently by underwriters.
About RSA Medical LLC
RSA Medical is a leading provider of medical assessment and medical management for patients interacting with the life and health insurance companies. By combining both medicine and sophisticated proprietary technology, RSA Medical clinicians are improving the manner in which insurance carriers grant services to patients and interact with providers. RSA Medical advocates for patients and works proactively with all providers to navigate insurance interactions to both mitigate and prevent disease.
About Hooper Holmes
Hooper Holmes is a leader in collecting personal health data and transforming it into useful information, enabling customers to take actions that manage or reduce their risks and expenses. With presence in hundreds of markets and a network of thousands of examiners, Hooper Holmes can arrange a medical exam anywhere in the U.S. and deliver the results to its customers.
Hooper Holmes has four divisions. Portamedic provides a wide range of medical exam services nationwide. Heritage Labs tests millions of samples annually and helps life insurers improve underwriting performance by better applying the predictive powers of today’s tests. Hooper Holmes Health & Wellness performs risk assessment and risk management services including biometric screenings, health risk assessments and onsite wellness coaching for wellness companies, disease management organizations, clinical research organizations and health plans. Hooper Holmes Services reduces the insurance sales cycle through integrated data collection, tele-interviewing and underwriting services.
This press release contains “forward-looking” statements, as such term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the Company’s current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions. Among the important factors that could cause actual results to differ materially from those expressed in, or implied by, these forward-looking statements are our ability to successfully implement our business strategy; uncertainty as to our working capital requirements over the next 12 to 24 months; our ability to maintain compliance with the financial covenant in our credit facility; our expectations regarding our operating cash flows; and the rate of life insurance application activity. Additional information about these and other factors that could affect the Company’s business is set forth in the Company’s annual report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on March 9, 2012. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release to reflect the occurrence of unanticipated events, except as required by law.
Burt R. Wolder, Senior Vice President, 908-953-6249
S.M. Berger & Company
Andrew Berger, 216-464-6400