News in brief - Aug. 22/29, 2005

Michigan Blues to create Web portal - WebMD changes name - HealthSouth settles retirement fund suit

Michigan Blues to create Web portal

Blue Cross Blue Shield of Michigan announced on Aug. 4 that it signed a contract under which Covisint, a subsidiary of Compuware Corp., will build a secure Web site for the health plan.

The site will enable the Michigan insurer to communicate online with health care professionals, members and agents.

Claims submission, benefits information, medical records, e-prescribing, electronic explanation of benefits and electronic reporting are among the transactions the plan expects to conduct over the site.

Financial terms were not disclosed, but the Blues said the contract is a part of its plan to invest $200 million to $300 million to upgrade its technologies, simplify business processes and reduce costs.

WebMD changes name

Effective Aug. 5, WebMD Corp. changed its name to Emdeon Corp. to avoid being confused with WebMD Health, the online health information subsidiary it is spinning off to the public. Emdeon, which sells physician practice management software and medical transaction processing services, will continue to trade on the NASDAQ under the ticker symbol of HLTH.

HealthSouth settles retirement fund suit

HealthSouth and its insurers have agreed to pay $25 million to settle a class-action lawsuit over losses to its employee retirement fund following an accounting scandal at the company.

In filings with the Securities and Exchange Commission, HealthSouth said it would pay $7 million and its insurers would pay $18 million to settle the litigation. Neither must admit wrongdoing.

The settlement, which must receive court approval, does not resolve claims against several former executives who were implicated in the $2.7 billion fraud at the outpatient services giant.

Meanwhile, a former HealthSouth vice president who was charged in an alleged bribery and kickback scheme involving a hospital in Saudi Arabia has been sentenced to three years of probation. Thomas Carman, who pleaded guilty to lying to the FBI during the investigation, was also ordered to pay $500.

In other HealthSouth news, the company said its controller and principal accounting officer, John T. Quille, was stepping down to pursue other opportunities. His duties were being handed over to John Workman, the chief financial officer.