The agreement calls for Transax to conduct real-time auto-adjudication, processing and payments for NHS member clients. The initial pilot program is with a healthcare provider network in New York City. If successful, Transax will then provide MedLink solutions to NHS’ client’s including health insurance companies, wellness programs, and self-funded health plans.
Under the agreement, Transax will generate revenue in two ways. Firstly, by collecting revenue on a per transaction basis for the delivery of its real-time billing and adjudication process. Secondly, revenue will be received for provision of real-time payment to medical providers following the auto-adjudication of healthcare claims.
To date, NHS has access to approximately 17 million US citizens. This includes two national wholesale discount health houses, two national PPO networks, and one national Third Party Administrator (TPA) insurance brokerage. Transax could potentially execute 400,000 additional monthly transactions through its partnership with NHS by the end of 2006, and over 1,200,000 additional monthly transactions by the end of 2007. As of March 2006, Transax was processing approximately 700,000 monthly transactions.
