POMPANO BEACH, Fla., June 5, 2007 (PRIME NEWSWIRE) -- MEDirect Latino Inc. (Pink Sheets:MLTO) (www.medirectlatino.org), the first national provider of direct-to-consumer Medicare reimbursed medical products focused exclusively on chronic diseases afflicting the Hispanic community, today announced the Company is in the final stages of its migration to a superior customer service software operating platform with proprietary features for customer tracking, forecasting, service, medical billing and collections. The proprietary platform includes electronic processing of medical verifications, eligibility and medical billing which will substantially reduce Medicare's reimbursement payment cycles (DSO), while increasing the percentage of collectables.
The Company anticipates that the migration will be fully implemented during the next 90 days, which equates to one customer reimbursement cycle. The migration includes secondary customer data and compliance integrity controls to insure the highest levels of regulatory guidelines are maintained, as MEDirect Latino is undergoing accreditation by The Joint Commission (formerly JCAHO). Accreditation is a requirement to participate in the upcoming Medicare (CMS) Competitive Acquisition Program (CAP). The Company anticipates receiving final accreditation by August 31, 2007, thereby allowing the Company to compete in the CAP.
The Company has realized immediate efficiencies in the man hours required to process both new and reorder customers. The Company reduced staff 24% during the month due the implementation of the technology, while processing a record reorder cycle of 4,976 customers, including 5,573 transactions, corresponding to gross 'reorder' revenue of $1,109,120 during the May period.
The migration, when fully implemented, is expected to reduce the overall costs to the Company for customer handling by 28%, a key driver in reaching profitability. The Company estimates that annual cost savings on staff and support services will exceed $800,000, which will directly increase net income. The Company will continue to pursue additional electronic efficiencies and reposition staff as necessary. Upon completion of the system integration, the Company will be further positioned to handle the customer response, in the most cost effective manner, to the planned media campaigns featuring celebrity spokespersons, Ms. Rita Moreno and Mr. Chi Chi Rodriquez.
ABOUT MEDIRECT LATINO:
MEDirect Latino (Pink Sheets:MLTO) (www.medirectlatino.org) is the first national provider of direct-to-consumer Medicare reimbursed medical products focused exclusively on chronic diseases afflicting the Hispanic community. MEDirect Latino is rapidly growing and uniquely positioned to service the Hispanic community in the United States and Puerto Rico. MEDirect is the only company currently positioned to serve the U.S. Hispanic healthcare market as a direct-to-consumer Medicare provider on an authentically national level. Type II diabetes was targeted because of its unique status within the Medicare reimbursement regime and due to its high degree of correlation to other chronic conditions such as high blood pressure and heart disease. These and other conditions represent considerable future market potential, MEDirect will scale its model by leveraging its existing client base and infrastructure in introducing new products and services to existing customers as they are identified.
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Safe Harbor Disclosure:
This press release includes "forward-looking statements" within the meaning of the federal securities laws, commonly identified by such terms as "believes," "looking ahead," "anticipates," "estimates" and other terms with similar meaning. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company's projections and expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.