The Physician’s Answer to Compliance to Privacy Legislation

1. The Physician’s Answer to Compliance to Privacy Legislation November 2, 2001

2. Arcamatrix Provides secure document access, storage and delivery to healthcare professionals

3. Problems Facing HCPs (Health Care Professionals) • Information management problems • Not enough time • Poor security and confidentiality for patient records • Inadequate secure storage and file delivery mechanisms • Information retrieval is difficult due to lack of automation • Loss of patient information impacts patient care

4. Problems Facing HCPs (cont’d) • Transcription problems • Transcription turnaround delays • Original file erased after transcription • Movement of tapes and transcribed files • Imaging problems • High cost of production and delivery • Long turnaround time • Loss of films or radiologist reports

5. Problems Facing HCPs (cont’d) • Compliance to Privacy Regulations • Proposed and existing federal & provincial regulations • US must comply by April 2003 to HIPAA Privacy Regulations (enacted April 14, 2001) • Most HCPs are unaware of pending or existing legislation

6. HIPAAHealth Insurance Portabilityand Accountability Act • Enacted to protect rights of US citizens to keep their medical records confidential • Guidelines to be developed by Department of Health and Human Services • Improve efficiency and effectiveness of healthcare system • Protect the security and confidentiality of all individually identifiable health information

7. HIPAA (cont’d) • Cost of compliance estimated to exceed $4 billion • Fines and imprisonment for noncompliance by April 2003 • HIPAA creates an incredible opportunity for an easy-to-use, cost-effective solution, especially for small practices

8. Some Statistics • Smaller offices and clinics • 65+% of HCPs in Canada (CMA) • 50+% of HCPs in USA • $6.6B spent on medical transcriptions each year • 25% of health care costs spent inefficiently

9. Arcamatrix Solution • Virtual Patient Chart • Consolidates voice, text and images • Easy to access (browser based, web based) • Cost effective (pay as use) Transactional • Easy to use • zero footprint • familiar practices

10. Arcamatrix Solution (cont’d) Challenges in building the solution • Technical • Compliance to Privacy Legislation--HIPAA and PIPIDA • User adoption

11. User Adoption Challenges • If we build it, will they use it? • 85+% of physicians offices have a computer (OMA, 2000) • <10% of physicians offices have Internet connectivity (Web-Enabling Healthcare Marketing Conference, April 2001) • 48% of HCPs use dictation

12. User Adoption (cont’d) • Our approach • Look at something that they already do (A to D) • Provide technology wrapped up in Value Proposition and Return of Investment • Partner with others for turn key for PC and connectivity

13. Compliance Challenges Our approach: • Law alone does not imply implementation • Build privacy and security in from the beginning- Transparent to the end user! • Technology that allows for the HCP to be the custodian of the information

14. Compliance (cont’d) • Stated and Agreed Upon Policies • Service Agreement/Partnership with HCP • Privacy Policy • Service Agreement with contractors with stated procedures

15. Technical Challenges • User interface • Privacy • Database integration and searchable voice, text and images • Security • Robustness

16. Arcamedx--User Interface 1- Dictate Document 2 - Logon to Arcamedx 3 - Select the service needed and upload the file

17. Arcamedx(cont’d) • The physician can: • Distribute voice, images or text files to other Arcamedx users • Search for stored files • Delete or archive stored files • Inquire about system usage and billing • Change passwords • Notified by email that file is ready from system or other user

18. Privacy • Access Control • Audit Trail • Confidentiality of all information

19. Database Integration • Qualified Oracle Database experience to integrate Oracle 8i • Ability to search voice, text and images • Different standards • voice - proprietary • HL7 • Dicom

20. Security • Information Security • SSL (128) link level • TDES • Physical Security • Firewalls • Servers stored in secure and monitored area

21. Robustness • Fully redundant configuration • Fault tolerant storage • Daily off-site backup • Catastrophic contingency

22. Virtual Clinical Information System • Integrates: • EMR, HIS, RIS • Practice Management & Laboratory Results • Medical Images Acquisition • Cost-effective • Targeted market: 450,000+ • ASP: Reduce capital cost expenditures

23. Virtual Clinical Information System (cont’d) • Security • End-to-end security (only physician can decrypt records) • Digital envelope for document distribution • Digital signature for patient records • Integrity • Non repudiation • Certificate Authority (CA)

24. Virtual Clinical Information System (cont’d) • Accessible Everywhere Securely • Wired • Wireless • Secure Backup and Archiving for all HCP data

25. Health Care Professionals Arcamedx ASP Virtual Patient Chart Delivery & Storage Secure Internet delivery Transcription Practice Management Medical Image Acquisition PACS/Teleradiology DICOM EMR/HIS/RIS (HL7) Clinical Information Systems

26. Health Care Professionals Transcription Practice Management Medical Image Acquisition PACS/Teleradiology DICOM EMR/HIS/RIS (HL7) Clinical Information Systems Arcamedx ASP Virtual Patient Chart Delivery & Storage Secure Internet delivery

27. Health Care Professionals Transcription Practice Management Medical Image Acquisition PACS/Teleradiology DICOM EMR/HIS/RIS (HL7) Clinical Information Systems Arcamedx ASP Virtual Patient Chart Delivery & Storage Secure Internet delivery

28. Health Care Professionals Transcription Practice Management Medical Image Acquisition PACS/Teleradiology DICOM EMR/HIS/RIS (HL7) Clinical Information Systems Arcamedx ASP Virtual Patient Chart Delivery & Storage Secure Internet delivery

29. Health Care Professionals Transcription Practice Management Medical Image Acquisition PACS/Teleradiology DICOM EMR/HIS/RIS (HL7) Clinical Information Systems Arcamedx ASP Virtual Patient Chart Delivery & Storage Secure Internet delivery

30. Health Care Professionals Transcription Practice Management Medical Image Acquisition PACS/Teleradiology DICOM EMR/HIS/RIS (HL7) Clinical Information Systems Arcamedx ASP Virtual Patient Chart Delivery & Storage Secure Internet delivery

31. Health Care Professionals Transcription Practice Management Medical Image Acquisition PACS/Teleradiology DICOM EMR/HIS/RIS (HL7) Clinical Information Systems Arcamedx ASP Virtual Patient Chart Delivery & Storage Secure Internet delivery

32. Arcamatrix Differentiation • Target physician practices, clinics, smaller hospitals 1-2, 3-25 • Distribution through established medical product distribution • Minimize capital expenditures for HCPs • Security and Privacy focus • Easy to use, cost effective solutions

33. Arcamatrix Contacts www.arcamatrix.com Toll free: 1-866-834-3774 • Arcamatrix Corporation • 2221 Yonge St. Suite 403 • Toronto, Ontario • M4S 2B4 • Sherry Shannon-Vanstone, CEO • Arcamatrix Incorporated • 695 South Colorado Blvd. • Suite 480 • Denver, Colorado 80246 • USA • Chris Hovey, President