DxCG Selected as Risk-Adjustment Method of Choice in Germany

National Commission Chooses DxCG for Health-Based Physician Payment

BOSTON, Mass., January 23, 2006 — The German Physician Payment Commission has selected DxCG®, Inc., the leading provider in the United States of predictive modeling software for health care organizations, to develop a German version of its health risk assessment tool for a health-based payment system to be used in the German statutory health insurance program.

The Commission, which represents the major German sickness fund associations and the German Association of Office-Based Physicians (KBV), selected DxCG after an extensive competitive bidding process that included most of the internationally recognized health care predictive modeling companies. The payment system built on the German version of DxCG's models will cover approximately 140,000 physicians and 90% of the German population.

"It is gratifying to be recognized by the Payment Commission," said Marilyn Schlein Kramer, president of DxCG. "Their detailed evaluation demonstrates that DxCG models are applicable outside of the U.S. and for any number of purposes. We look forward to working with the sickness funds and the physicians' association to help develop a payment system that promotes fair and efficient health care in Germany," added Kramer.

About DxCG®, Inc.
DxCG, an ISO business, promotes fair and efficient health care by providing software solutions to more accurately plan, budget and evaluate health care management programs. DxCG has more than 200 clients in the U.S. and abroad. The company's Diagnostic Cost Group (DCG) and RxGroups® predictive models are used to negotiate health-based payments, identify opportunities for disease management, profile physicians and evaluate managed care programs. Recognized by leading independent researchers as the most proven models available, DxCG's methodologies are used by the federal government to set payment rates for the U.S. Medicare program.

Release: Immediate

Giuseppe Barone / Erica Helton
MWW Group (for ISO)
gbarone@mww.com / ehelton@mww.com

Stephanie Martinovich (DxCG)
E-mail: stephanie.martinovich@dxcg.com

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