MD On-Line Inc. Acquires Medical Claim Corp.

Expands Network of Direct Provider Relationships to Reduce Administrative Costs in Healthcare and Streamlines Processes for Both Payers and Providers

PARSIPPANY, N.J., June 4 /PRNewswire/ — MD On-Line Inc., a leading Healthcare Service Company with a core focus of converting paper submitting providers to electronic submission, announced today that it has purchased Medical Claim Corp. (MCC) of Bristol, CT. Both are EHNAC-accredited companies that process healthcare transactions electronically and focus on accelerating provider revenue cycles. With the combined resources of two industry leaders, including powerful web-based utilities for providers, outstanding customer support teams and direct relationships with many major payers, new levels of efficiency in the healthcare transaction process are already being realized.

(Logo: http://www.newscom.com/cgi-bin/prnh/20060925/NYM010LOGO)

MD On-Line has been chosen by more than 25 major Health Plans to be their solution of choice on their websites, enabling Physicians and other Healthcare providers to switch from paper submitting processes to more cost effective and streamlined electronic methods.

Medical Claim Corp., founded in 1990, was a pioneer in the field of healthcare EDI. MCC has garnered a reputation for a steadfast focus on provider satisfaction evidenced by its consistent growth through client referrals. MD On-Line has attained a solid reputation through unparalleled customer and technical support, making the two companies an excellent match. David Johndrow, founder of Medical Claim Corp., reiterated this by stating, “It gives me confidence to know that after 19 years of hard work building relationships with our customers that upon my retirement, the same level of first class service will continue.”

“The combination of these two customer service centric organizations creates the opportunity for both our customers and employees to benefit from the some of the best tools and services available in the industry. We are extremely excited about the opportunities in front of us as we look to expand our relationships with both Health Insurance Companies and Healthcare Providers to eliminate the paper process between the parties,” added Bill Bartzak, CEO of MD On-Line.

The acquisition will strengthen MD On-Line by adding MCC’s loyal provider base, and the short and long term benefits are extremely positive. As a result of the acquisition, MD On-Line now has direct relationships and processes electronic transactions for more than 30,000 healthcare providers nationally.

About MD On-Line, Inc

Founded in 1995, MD On-Line, Inc. is a healthcare technology company focused on “Transacting the Business of Healthcare”. The company provides solutions enabling connectivity between Healthcare Payers and Providers to facilitate transactions and reduce related costs. Privately-held, the company processes in excess of five million electronic transactions per month, and is the preferred solution provider for some of the largest medical insurance companies in the country. Headquartered in New Jersey, MD On-Line has been named to the Inc. 500 list of the fastest growing companies in America, and included on the Deloitte & Touche Fast 500 and New Jersey Technology Fast 50 list of companies. More information is available at www.mdon-line.com.

SOURCE MD On-Line, Inc.