W. CONSHOHOCKEN, Penna. - May 2, 2005 - Healthworks Alliance, Inc., a leading provider of front and back-end software applications designed to assist healthcare providers in identifying and eliminating denied claims and related write-offs across the revenue cycle announced today that it has been acquired by Passport Health Communications, Inc. This acquisition will strengthen Passport’s position as a strategic provider of business solution services to healthcare providers focused on eligibility and benefit validation, integrated solutions, financial services, batch processing and claims clearinghouse.

Healthworks, with corporate offices in King of Prussia, PA and sales team located in Boston, Chicago, Dallas and San Francisco, has been developing software for healthcare providers since its inception in 1990. When Medicare mandated medical necessity validation, Healthworks was one of the first to incorporate the ability to generate Advance Beneficiary Notices (ABNs) into its order entry product. Today, Compliance Checker ™ All Payer is one of the leading products in the segment and has the added ability to perform this same type of screening on patients with commercial insurance.

The ability to transform Healthworks’ extensive database of reimbursement edits into additional EDI transactions, along with the licensing of Healthworks’ denial management software applications, will allow Passport to offer the most robust set of reimbursement management solutions to help healthcare providers maximize their cash flow and profitability.

According to Adolf Paier, Healthworks’ Chairman and CEO, “Healthworks has had a long history of providing industry-leading products that have addressed both the clinical and financial aspects of healthcare. We are delighted to become part of Passport Health Communications, a company that shares our values and with whom we can achieve new heights.”

Terms of the transaction were not disclosed.


About Healthworks Alliance
Healthworks Alliance, Inc. develops and markets application software and specialized databases which are used by healthcare providers to validate orders and claims for compliance with applicable reimbursement edits, and to manage the appeal of denied claims. Healthworks markets its products directly as well as through strategic alliance partners. Healthworks’ Compliance Checker™ products are currently installed in over 400 hospitals and physician practices across the United States. The Healthworks Alliance web site is www.hworks.com.

About Passport Health Communications, Inc.
With insurance information on over 175 million covered lives, Passport Health Communications, Inc. is focused on delivering innovative, transaction-based healthcare solutions that help providers manage the balance between patient access, quality of care and getting paid. Passport’s real-time solutions help providers maximize their revenue cycle performance by reducing denied claims and their related write-offs. With the addition of Healthworks, Passport will grow to over 1,200 hospital customers and 1,500 large physician groups. Passport’s website is www.passporthealth.com.