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Report Shows Measurable Net Savings for Managed Care
Organizations from COPD Disease Management Program

Findings by Dallas-based AirLogix Published in
Disease Management

(Dallas, TX, July 17, 2002) In a scientific report recently published in the journal Disease Management (Volume 5, Number 1, 2002), author Barry Zajac of Dallas-based AirLogix discusses the clinical and financial outcomes of its Chronic Obstructive Pulmonary Disease (COPD) population health management program which the company has provided to over 120,000 members of managed care organizations (MCOs) since 1994. The report reveals significant improvement in key patient health status indicators as well as considerable savings in patient care cost for MCOs which have participated in the program.

The report reveals that out of 6,428 COPD patients who had been in the program for at least 90 days, improvements have been documented in breathing interference incidents, nighttime awakenings with shortness of breath, and wheezing complaints. Additionally, significant net savings rates for MCOs where demonstrated in various analyses of commercial and Medicare HMO COPD population. In two different studies presented in the article average claims costs, including prescription drugs, were reduced by 21% and 11% after adjusting for plan-wide cost trends, before accounting for program fees. Considering program fees, return on investment was 4.7 and 2.0:1, respectively in the two studies.

COPD is a progressive disease of the lungs that is the fourth leading cause of death in the United States. It is characterized by progressively increasing secretions and decreasing elasticity of the airways resulting in irreversible diminished lung function. Sixteen million Americans are diagnosed with a form of COPD, and as many may be undiagnosed. According to the Global Initiative on Obstructive Lung Disease (GOLD), age-adjusted mortality from COPD has risen 163% since 1965.

AirLogix is the largest provider of respiratory population health management services which it has provided to over 200,000 members through population-based COPD and Asthma programs. Its COPD management program consists of education, self-management tools and support, case management, telephonic and home interventions to members of contracted managed care organizations.

"The outcomes revealed in this report confirm our COPD management program has measurable success in reducing condition-related incidents and medical claims associated with chronic respiratory conditions in high risk populations," said Susan Riley , President of AirLogix. "COPD is the one of the fastest growing chronic diseases affecting national and international health today. As the adverse effects of tobacco use continue in the US and around the world, many more patients and caregivers will be impacted by this progressive, degenerative disease, while the healthcare system carries the increasing burden of associated costs. AirLogix is proud to demonstrate that a significant impact can be made on the improvement of clinical symptoms, quality of life factors, and overall cost of care for those affected using our proven high-touch approach."

Disease Management is an international, peer-reviewed publication that is focused on current developments in the field of disease management. Mr. Zajac, the study's author, is Vice President of Clinical Informatics for AirLogix where he conducts and oversees analysis of patient and population data. He has conducted research and analysis in various settings for the past 13 years and has published several articles and book chapters on a variety of health services research and measurement topics.

About AirLogix
As the pioneer in respiratory disease management, AirLogix is the industry's leading expert and resource for comprehensive respiratory disease management. Since 1994, AirLogix has managed more than 200,000 patient lives specializing in respiratory ailments including asthma and COPD. With a focus on high-touch care and high-tech systems, the company provides innovative programs that are flexible to meet the diverse needs of the managed care organizations providing assistance in managing chronic respiratory diseases and reducing medical costs. The programs include a combination of inbound and outbound telephone care, education materials and in-home interaction. AirLogix has sophisticated information technology with which is manages patient programs, client information, analysis and outcomes. For more information, visit the company's web site at www.airlogix.com.

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