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Physician IT

Healthscreen to acquire Medical Telecom Corp.

ST. CATHARINES, Ont. – Healthscreen Solutions Inc. announced that it has entered into a letter of intent to acquire at least 75% and up to 100% of Medical Telecom Corp., a private company located in Toronto. The acquisition of MTC and its brand “CallerMD” (www.callermd.com) is expected to close on or before April 30, 2007.

Healthscreen and MTC signed an agreement in October 2006, whereby the two companies agreed to endorse each other’s products and sell them to the other’s consumer base. The vertical integration of MTC is the next step in this business relationship and will augment Healthscreen’s existing suite of billing and scheduling services, and its popular electronic medical records (“EMR”) software, by providing enhanced practice management services to physicians across Ontario.

MTC’s CallerMD provides 450 Ontario physicians with a billing system for uninsured medical services such as telephone advice, phone in prescription renewals and sick notes. Physicians often spend an hour or more each day providing uninsured medical services to their patients with only a fraction billing effectively for these services.

“Healthscreen is a natural choice for us as they are a leading EMR provider and have strong brand recognition in Ontario,” said Justin Belobaba, President of MTC. “The combined strengths of our businesses will provide tremendous benefits to practicing physicians – both in terms of increased revenue and improved operating efficiencies.”

The acquisition is expected to expand Healthscreen’s market and may increase revenues by cross-promoting the Company’s practice management services and EMR software with CallerMD’s uninsured billing system to the newly merged customer list.

MTC is paid approximately 15% of recovered revenues from each doctor for its service. MTC has experienced success in forming alliances with large health organizations such as the Coalition of Family Physicians and the Ontario Medical Association’s Section of Family Medicine.

Healthscreen and MTC will continue this strategy of leveraging relationships with credible health organizations to educate doctors on the benefits of outsourced practice management services.

“We are thrilled to have MTC join us in furthering our efforts to become a provider of enhanced practice management services to clinics across Canada,” said Dr. Bruce Rosenberg (pictured), Healthscreen’s President. “In addition to our EMR software and MTC’s CallerMD billing system, we will continue seeking new high margin products and services that will deliver exceptional value to our customers while impacting our bottom line.”

When the proposed acquisition closes, Justin Belobaba, President of MTC, will be appointed President and Chief Executive Officer of Healthscreen and Dr. Bruce Rosenberg, the current President of Healthscreen, will be appointed Vice President of Business Development leading the company into its next stage of growth. The board of directors of Healthscreen will not change.

The proposed acquisition and private placement are subject to a number of conditions including the approval of the TSX Venture Exchange, the completion of satisfactory due diligence investigations by both Healthscreen and MTC, the negotiation of a definitive agreement and approval by the boards of directors of both parties.

Healthscreen has had six consecutive quarters of strong fiscal performance and with the addition of MTC’s potential sales growth and customer acquisition, the Company believes it is well positioned to become a leading full service provider of clinic management services for physicians across Canada.

About Healthscreen Solutions Inc.
Healthscreen Solutions (www.healthscreen.com) was among the first Electronic Medical Records (EMR) providers to create leading edge software that support digitalization and network connectivity solutions for a growing list of research groups and community physicians consisting of over 1600 sites. The Company serves thousands of physicians and handles more than $1.5 billion in healthcare transactions a year.

 

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