This new venture will be jointly developed and operated by Terremark Worldwide's NAP of the Americas and Conectron. The NAP of the Americas will provide the secure physical facility to house the MedNAP. Additionally, the facility will provide connectivity via its numerous carrier and ISP customers, collocation space and power with 100 percent service level guaranties, and engineering and monitoring services.
Conectron will bring experience, expertise, relationships and contacts resulting from the twenty plus years it and its management team have in the health care industry. Dr. Fernando J. Valverde, Conectron's founder and CEO, who is considered a pioneer in the managed care industry, will serve as the MedNAP's CEO. Terremark and Conectron expect to have the MedNAP operational at the NAP of the Americas in September 2002.
The MedNAP will focus on providing a suite of services which can be purchased individually or as a package to provide a turnkey IT solution for health care providers. The MedNAP's services are expected to include a completely reliable and secure location to host customer hardware and software, ASP platforms for standardising, maintaining, accessing and protecting the privacy of medical records, billing, claims management, telemedicine, and, most importantly, compliance with the Health Insurance Portability and Accountability Act (HIPAA).
Target customers of the MedNAP will be small, medium, and large health care providers such as physician practice groups, emergency room operators, hospital companies, and managed care providers. The market for MedNAP services has great potential. According to the Yankee Group, "Health care organisations will have to turn to outsourced health care solutions in order to meet HIPAA requirements." The Yankee Group describes HIPAA compliance as "comparable in scope and cost to the Y2K phenomenon".
The United States Department of Health and Human Services estimates that HIPAA compliance will cost billions, industry wide. Blue Cross Blue Shield puts the number at $43 billion over the next five years. The Yankee Group also notes that the successful outsourcing company will be the one that provides long-term value delivered by vertically integrated service providers. "We are convinced that the NAP of the Americas and Conectron are well positioned to provide the type of vertical expertise that the Yankee Group is recommending", stated Dr. Valverde.
"Few if any health care providers today are prepared to comply with HIPAA requirements, yet all must do so no later than next year. In fact, many of the largest hospital companies and managed care providers still do not have in place any real plan for HIPAA compliance and are dreading having to do so", explained Dr. Valverde. "The MedNAP will give everyone in the industry the ability to outsource their HIPAA compliance plan and avoid the headaches associated with this complicated and cumbersome process. We believe we will be the first compliant outsourcing programme for the industry and are certain we will be the only one hosted at a Tier-1 Network Access Point, ensuring the ultimate in reliability, security and connectivity", he concluded.
Conectron has already secured the first two customers for the MedNAP. Memoranda of understanding have been signed with HealthCare 2000 and Medical Care Consortium, each of which is itself a provider of services to the medical industry. Together, they manage approximately 150 physician practices, representing many hundreds of doctors and over $500 million in annual health care revenues. These two management companies have agreed to host all of their practices at the MedNAP, once it is operational.
Terremark Worldwide Inc. is the owner and operator of the NAP of the Americas, the fifth Tier-1 Network Access Point in the world and the model for TerreNAP Data Centers the company is deploying in Sao Paulo, Brazil; Madrid, Spain; and other emerging markets. The carrier-neutral NAP of the Americas is a state-of-the-art facility providing interconnection between global carriers, ISPs and others, as well as connecting fiber networks in Latin America, Europe, Asia and Africa to those in the United States.
Conectron Inc. developed the patent-pending technology, Conectron BackPage, inspired by the vision of a two-sided Web page as an innovative solution to the Internet's limitations concerning speed and Web site navigation. Conectron BackPage is a break-through new software that "glues" Web pages together to accelerate content across the last-mile. Leveraging its management team's 20-plus years of experience in the health care industry, Conectron also develops IT solutions to meet the unique requirements of the health care and pharmaceutical industries for secure, reliable systems for managing data.