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HMS Acquires Permedion to Expand Clinical Review Capabilities
Date:10/8/2007

ts reach nationwide to more state and federal health care payors, and to grow its service offerings. We are excited to be a part of HMS's strategy to bring the entire range of program integrity services to the market through a single source."

Permedion has held 24 Medicaid contracts in nine states and currently partners with the Ohio Department of Job and Family Services (ODJFS) to assure quality of care and appropriateness of services for the Ohio Medicaid population. Permedion also provides clinical review services as a subcontractor to HMS for the Colorado Medicaid program.

Permedion will operate as a wholly owned subsidiary of HMS and projects revenues of approximately $3.7 million for the fiscal year ending September 30, 2007. It is anticipated that the acquisition of Permedion will not have a material effect on HMS's fourth quarter 2007 earnings.

About Health Management Systems

Health Management Systems (HMS) is the nation's leader in cost containment, coordination of benefits, and program integrity services for government healthcare programs. HMS serves the Medicaid programs of 40 states and 65 Medicaid managed care plans. In addition, the company provides services to child support agencies, SCHIP, and Veterans Administration facilities. In 2006 alone, HMS recovered more than $1.0 billion from third parties and other funding sources for its clients, and provided data that assisted them in saving several billions more. HMS is a wholly owned subsidiary of HMS Holdings Corp. (Nasdaq: HMSY), which is headquartered in New York and operates offices nationwide.


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SOURCE Health Management Systems, Inc.
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