MphasiS - Eldorado Computing Offers Healthcare Payers Complimentary BPO Services White Paper

MphasiS - Eldorado Computing, Inc. (ECI), which specializes in health benefit management solutions, announced today the availability of a whitepaper that examines why platform-based business process outsourcing (BPO) provides the optimal approach to outsourcing claims administration and other back-office processes for small to mid-size healthcare payers.

Small to mid-size third-party administrators and other healthcare payers today face numerous challenges:

--  High cost of operation - Administrative costs in health plans make up
    between 9 percent and 15 percent of the total costs and health plans are
    actively seeking ways to reduce that amount.(1) Additionally, overhead for
    a typical mid-size payer represents 35 percent of costs.

--  Low profitability - The majority of health plans still have narrow
    operating margins; the industry's profit margin was 3.8% in 2003 and
    averaged 5% among the top 17 publicly traded health plans.(2)

--  Insufficient focus on client service - Excessive focus on repetitive
    back-office functions consumes time, resources and energy that could be
    spent on strengthening customer service.

--  Difficulty scaling up to acquire new customers - Few small or mid-size
    organizations have the infrastructure and resources to manage significant
    increases in transaction volumes.
    

"Platform-based BPO is a major advance toward enabling healthcare payer organizations to concentrate on their core business, increase sales and reduce costs," says Zane Bell, vice chairman of ECI. "The significant cost savings made possible with platform-based BPO services can amount to millions of dollars and incalculable staff time that can be re-directed to core competencies and growing the business."

Platform-based BPO enables the outsourcer to perform back-offices transaction processing of repetitive business processes to improve the quality and speed of essential functions while allowing TPAs and other small and mid-sized healthcare payers to focus on customer services, retention and acquisition.

The white paper, "Architecting Value and Competitive Advantage through Platform-based BPO," is available on ECI's website at Eldorado's Whitepaper Page (http://www.eldocomp.com/index.php?option=com_content&task=view&id=87&Itemid=209).

About Eldorado Computing, Inc.

Based in Phoenix, Ariz., Eldorado Computing, Inc. (ECI), is a wholly owned subsidiary of MphasiS, a leading provider of IT and BPO solutions. ECI provides integrated HIPAA-compliant software and ASP solutions for health benefits management, serving hundreds of third party administrators (TPAs), health plans, employers and self-insured organizations. Together, Eldorado Computing's customers manage five million lives and handle 35 million claims annually. For more information, contact 602.604.3100 or visit http://www.eldocomp.com or http://www.mphasis.com.

(1) Source: Capgemini "Balancing for Success 2004: The Top Ten Issues Facing the Managed Health Care Industry," page 12.

(2) Source: Capgemini "Healthcare's Top Business Issues and Responses for 2005," page 3.

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