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EXHIBIT 10.13
Services and License Agreement
Between ActaMed Corporation
and United HealthCare Corporation
This Services and License Agreement (the "Agreement") is made and
entered into as of April 4, 1996 (the "Effective Date"), by and between ActaMed
Corporation ("ActaMed") and United HealthCare Corporation ("UHC"), for itself
and on behalf of each of the Managed Plans which has given its written consent
(as hereinafter defined).
RECITALS
A. ActaMed is in the business of providing electronic data
interchange products and services to the health care industry.
B. UHC, for itself on and behalf of its Affiliates (including
The MetraHealth Companies, Inc.), and other entities that UHC may hereafter
acquire, and on behalf of the health maintenance organizations identified in
Exhibit A hereto that are managed by UHC or an Affiliate thereof and which have
given their consent to be bound by this Agreement (which plans which give their
consent are referred to herein as the "Managed Plans"), desires to obtain from
ActaMed certain software and materials and access to the Network, on the terms
and conditions set forth below.
NOW, THEREFORE, in consideration of the premises and the mutual
promises contained herein, the parties agree as follows.
1. DEFINITIONS.
1.1 "Affiliate" means with respect to a party, an entity directly
or indirectly controlling, controlled by or under common control with such
party where control means the ownership or control, directly or indirectly, of
more than fifty percent of all of the voting power of the shares (or other
securities or rights) entitled to vote for the election of directors or other
governing authority, as of the Effective Date or hereafter during the term of
this Agreement; provided that such entity shall be considered an Affiliate only
for the time during which such control exists. The Managed Plans shall be
considered to be Affiliates of UHC.
1.2 "Cosmos" means the computer program owned by UHC which is
commonly known as Cosmos, and which UHC operates for health care claims
adjudication and other business functions.
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1.3 "Enhancements" means changes or additions to application
software and documentation that improve existing Functions, add new Functions,
or improve performance through changes in the system design or coding.
1.4 "Functions" means the tasks employed by users to exchange
information within the Network.
1.5 "Licensed Materials" shall mean the Network Software, the
ORBIT software (i.e., the ProviderLink billing and registration system), and
the documentation, training materials, and other materials related to the
Network Software or the Network which are listed on Exhibit B attached to this
Agreement. All updates and new versions of such materials are also included in
the definition of "Licensed Materials".
1.6 "Network" means the electronic data interchange ("EDI")
system and network operated by ActaMed, which includes the Network Software,
including any future versions of the EDI network or products substituting for
it which include the basic functionality of the Network Software and network as
of the Effective Date, regardless of the name under which it is marketed. The
term "Network" specifically excludes any telecommunications network.
1.7 "Network Software" means the personal computer version of the
ProviderLink and ActaLink presentation and network software programs, and all
updates to them, which are licensed to users and which allow access to the
Network for the transmission and reception of information.
1.8 "Provider" means a provider of health care services, which is
not UHC, an Affiliate of UHC, or operated by UHC.
1.9 "UHC" means United HealthCare Corporation and its Affiliates.
2. LICENSE AND NETWORK ACCESS.
2.1 ActaMed grants UHC the nonexclusive, nontransferable right to
use the Licensed Materials, to reproduce and modify those of the Licensed
Materials so designated on Exhibit B, and to access and utilize the services of
the Network, for UHC's internal use, on the terms set forth in this Agreement.
UHC's internal use shall include use by and/or on behalf of (a) UHC or any UHC
Affiliate; and (b) third parties that are purchasers of UHC's products and/or
services, including management services, as well as UHC's health care service
providers (including, without limitation, NYH Health Plan Services, Inc.
("NYHHPS") and its subsidiaries and/or affiliates pursuant to the First
Restated Administrative Services Agreement between UHC and NYHHPS, dated
September 1, 1994, as amended from time to time). UHC's access to use the
Network will be on the same operational basis which ActaMed offers the Network
to its other customers of the Network, except as otherwise provided in this
Agreement.
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2.2 UHC shall submit all permitted modifications it makes to the
Licensed Materials for ActaMed's approval, prior to distributing the
modifications. If ActaMed does not respond to UHC within fourteen days after
UHC submits modifications to ActaMed for approval, the modifications shall be
deemed approved. On the copies of the Licensed Materials UHC makes, UHC shall
reproduce all notices or legends appearing on the original copy, including the
copyright notice. All copies of the Licensed Materials made by UHC can be used
only as permitted under this Agreement. At any time within ten days after
ActaMed's written request, UHC shall inform ActaMed of the number and location
of all copies of the Licensed Materials UHC has made.
2.3 UHC shall have the right to install the Network Software at
any UHC location and at any locations of Providers working with UHC, and to
connect such locations to the Network. ActaMed will install the Network
Software at UHC or Provider sites and connect them to the Network, when
mutually agreed by the parties. UHC and ActaMed will do agreed upon
installations in a timely manner. UHC and ActaMed must continue to use the
installation procedures developed by UHC or other mutually agreeable
installation procedures (except as provided in any agreements directly between
ActaMed and a UHC health plan, such as UHC Georgia) for such sites. UHC shall
not be obligated under paragraph 12.1 to pay a monthly site fee or transaction
fees for any Provider connected to the Network by ActaMed, unless UHC has
agreed to be responsible for such Provider and fees.
2.4 Any development work on the Licensed Materials or the Network
which was in progress on the date of this Agreement, will be provided to UHC
upon completion and included within the definition of "Licensed Materials", at
no charge to UHC, if it is set forth on Exhibit C attached to this Agreement.
2.5 UHC shall not act as a clearinghouse for health care claims
going to payors other than UHC, other than as required by a UHC client, such as
UBS misdirected Railroad Retirement claims and Medicare cross-over claims.
2.6 If UHC desires to and ActaMed agrees that UHC may use and
implement the Licensed Materials or the Network technology outside North
America, UHC and ActaMed shall mutually agree upon the terms and conditions of
such use and implementation.
2.7 Except as otherwise provided in this Agreement, ActaMed
provides the Licensed Materials to UHC on an "AS IS, WHERE IS" basis. ACTAMED
EXPRESSLY DISCLAIMS ANY WARRANTIES, EXPRESS OR IMPLIED, RELATING TO THE
LICENSED MATERIALS, INCLUDING, BUT NOT LIMITED TO, THE WARRANTIES OF TITLE,
NONINFRINGEMENT, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE OR USE.
2.8 Except as otherwise provided in this Agreement, UHC shall not
(a) copy, reproduce, modify, or excerpt any of the Licensed Materials for any
purpose; (b) distribute,
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rent, sublicense, share, transfer or lease the Licensed Materials or access to
the Network, to any person or entity which is not a party to this Agreement; or
(c) attempt to reverse engineer or otherwise obtain copies of the source code
for the Licensed Materials.
2.9 UHC acknowledges that the Licensed Materials may contain
embedded runtime modules of products licensed to ActaMed by Sybase, Inc.
("Sybase") and, accordingly, that Sybase as an interested third party
beneficiary of this Agreement, may enforce this Agreement directly against UHC
and shall have no liability to UHC. In addition, UHC agrees that Sybase shall
have the right to direct a recognized independent accounting firm to conduct,
during normal business hours, an audit of appropriate records of UHC to verify
(a) the number of copies of the Licensed Materials in use by UHC, and the
computer systems on which such copies are installed, the number of processors
in such computer systems, and the number of users using such copies; and (b)
UHC's compliance with this Agreement. Representatives of the auditing firm
shall protect the confidentiality of UHC's confidential information and abide
by UHC's reasonable security regulations while on UHC's premises.
2.10 ActaMed agrees that ActaMed does not own and cannot use,
distribute or publish any data transmitted over the Network either to or from
UHC, except to the extent such data originates with ActaMed. Notwithstanding
the above, ActaMed shall have the right to collect and distribute data
transmitted over the Network back to the originator of such data.
3. MARKETING AND IMPLEMENTATION OF NETWORK PRODUCTS.
3.1 UHC will identify the business needs, goals and objectives of
UHC for ActaMed, and will establish targets for the number and volume of
Providers submitting electronic transactions. These numbers will be estimates,
and not guarantees, for any amount of business for ActaMed. UHC will provide
this information to ActaMed no less often than quarterly, and shall respond to
additional requests for information within thirty days of ActaMed's request.
The parties shall mutually agree upon any other information or data which UHC
may give to ActaMed under this Agreement.
3.2 ActaMed will appoint at least one representative dedicated to
the UHC account, who will have decision making capabilities for ActaMed. This
person will attend planning meetings with UHC, keep UHC updated on national
trends in EDI, and consult with UHC regarding ActaMed's software and network
strategy. ActaMed will provide a representative to WEDI and ANSI to represent
UHC, upon UHC's request. UHC shall also designate a representative to work with
ActaMed and to coordinate UHC's activities with ActaMed, who will have decision
making capabilities for UHC. This person will attend planning meetings with
ActaMed, keep ActaMed updated on technical developments with respect to Cosmos,
and coordinate UHC's activities with ActaMed. J.R. Xxxxxx will be the initial
representative for ActaMed and Xxx Xxxxxxxxx will be the initial representative
for UHC. Each party will consult with the other before changing its designated
representative.
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3.3 Exhibit D to this Agreement specifies the reports UHC will
deliver to ActaMed and ActaMed will deliver to UHC daily, weekly, monthly,
quarterly and annually. The parties shall also provide ad hoc reports to each
other at no cost to the requesting party.
3.4 ActaMed will submit to UHC for its input and comments a
comprehensive disaster recovery plan and documentation within 90 days after the
date of this Agreement. The plan shall include testing of the plan no less
often than annually and agreed upon time constraints within which full recovery
will be expected. ActaMed will accept comments from UHC and make reasonable
commercial efforts within the context of the Network to incorporate such
comments. ActaMed will use its best efforts to establish a hot site under its
disaster recovery plan which is not at a UHC data center within one year after
the date of this Agreement. ActaMed will submit amended disaster recovery plans
to UHC, for its information and input, any time that ActaMed makes substantial
changes to its plan. ActaMed will participate in UHC's annual test of the UHC
disaster recovery plan, with up to forty hours of ActaMed personnel time at no
cost to UHC. For any additional time beyond the forty hours which UHC requests
from ActaMed for this purpose, UHC will pay ActaMed an agreed upon price.
3.5 ActaMed will establish a user group, to consult on priorities
and provide direction to ActaMed on system initiatives, which will include
representation from UHC, Providers and payors. ActaMed will solicit user
suggestions, input and feedback regarding the Network. ActaMed will provide to
UHC copies of customer satisfaction surveys and other similar information
regarding use of the Network at sites for which UHC is paying the monthly site
fee or any transaction fees.
3.6 UHC will make its sales and Provider relations personnel
available to work with ActaMed to develop new sites for use of the Network by
Providers working with UHC, to the same extent that such personnel work with
UHC's EDI Services to develop new sites as of the Effective Date. Pursuant to
paragraph 12.2, UHC shall have the option of performing installations and
implementations of the Network software itself, rather than contracting for
them through ActaMed. In such circumstances where UHC has decided not to
out-source such functions to ActaMed, UHC will continue to use health plan
ProviderLink representatives to install and implement the Network for new and
existing UHC-sponsored sites. UHC will also continue to use health plan
ProviderLink representatives to train and provide technical support to the
extent required under Exhibit F and section 8.
3.7 UHC shall sponsor a reasonable number of reference inquiries
and visits (not to exceed two visits in any calendar month) by customers and
potential customers of the Network, pursuant to ActaMed's Showcase Program, on
mutually agreeable terms. UHC shall retain the right to reasonably refuse a
site visit to any competitor or potential competitor of UHC, and ActaMed shall
inform all customers and potential customers allowed on UHC's premises under
this paragraph 3.7 that they are required to abide by
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UHC's security procedures and policies.
4. ACTAMED'S OBLIGATIONS REGARDING, NETWORK PRODUCT LINE.
4.1 ActaMed will, during the term of this Agreement, continue
maintaining the Licensed Materials and the Network, or other ActaMed products
which provide, at a minimum, substantially the same functionality as provided
by the Licensed Materials and the Network, on the Effective Date.
4.2 ActaMed will update the licensed Materials and the Network
with changes mandated by state or federal law and other changes required in the
reasonable opinion of the parties to meet market expectations for EDI,
including the ANSI X12N standard. The parties will mutually agree upon any
additional standards which ActaMed will need to maintain. If the changes
mandated by this paragraph apply to substantially all of ActaMed's customers,
then ActaMed will make such changes as part of a release of the Network or the
Licensed Materials pursuant to paragraph 8.1 or paragraph 8.2.
4.3 Subject to section 9, both parties will continue to work with
practice management system vendors to develop interfaces between practice
management programs and the Network, in order to be able to market the Network
to Providers. UHC will assist ActaMed in its attempts to establish
relationships with and work with practice management system vendors.
4.4 ActaMed will work with and cooperate with Allina and UHC to
formulate a plan allowing Allina to use the Network to operate its LaborLink
product, at UHC's request.
4.5 ActaMed will be responsible for notifying all Providers,
practice management vendors and other entities which are signatories to Network
agreements to be assigned by UHC to EDI Services, Inc. that the assignee will
be merged with and into ActaMed. UHC shall have the right to review and approve
the notice prior to ActaMed sending it to any Providers or other signatories.
4.6 ActaMed shall place a copy of the source code, object code
and technical documentation for all software used in the operation of the
Network in escrow, including the Network Software, for the benefit of UHC,
pursuant to the escrow agreement attached to this Agreement as Exhibit E (the
"Escrow Agreement"). ActaMed shall cause UHC to be listed as a "Licensee" under
the Escrow Agreement and shall cause the Licensed Materials and all operational
computer software and documentation ActaMed uses to operate the Network to be
listed as a "System" under the Escrow Agreement, as soon as practical after the
Effective Date. In the event ActaMed ceases operating the Network for any
reason defined in such Escrow Agreement during the duration of this Agreement,
ActaMed shall deliver to UHC, for UHC's nonexclusive use, one then-current copy
of all operational computer software and documentation ActaMed uses to operate
the Network.
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5. UIHC'S OBLIGATIONS REGARDING THE NETWORK.
5.1 UHC shall generate or receive transaction data in the
standard format and the protocol set forth in such format
which is in use as of the Effective Date, or as otherwise
mutually agreed upon by the parties. In the event that
ActaMed changes such format, UHC shall provide ActaMed with
standard output and test messages for ActaMed's use.
5.2 UIHC shall provide, at its own expense, all necessary
hardware, including terminal equipment, compatible with and
suitable for its communications with the Network. UIHC shall
prepare the proper operating environment as described in
Exhibit J attached to this Agreement. ActaMed shall verify
UHC's operating environment with the testing procedure
established by ActaMed and agreed to by UHC.
6. ACCESS TO COSMOS AND OTHER PROPRIETARY UHC SOFTWARE.
6.1 ActaMed will not have access to Cosmos or any other UHC
proprietary systems, and will have no right to modify the computer code in
Cosmos, except as mutually agreed by the parties in writing. ActaMed will not
receive any part of the Cosmos code, except as mutually agreed by the parties
in writing. The Network will deliver claims and information to Cosmos, and UHC
is solely responsible for the operation of Cosmos.
6.2 UHC produces new releases of Cosmos four to five times each
year, and new releases of other UHC host computer systems (including host
computer systems operated by third party out-sources on behalf of UHC), from
time to time. UHC will give ActaMed notice of such changes and information
regarding them, and, if the changes require any modifications to the Network or
the Licensed Materials, the parties will mutually agree on the scope of the
project, the deliverables, deadlines, any fees ActaMed will charge UHC, a test
plan and an acceptance test plan.
6.3 If, at any point, UHC agrees that ActaMed needs access to any
other proprietary UHC software or systems, the parties shall negotiate a
limited license allowing ActaMed such access to be used only for UHC's benefit.
6.4 ActaMed agrees that UHC shall be the sole and exclusive owner
of any and all changes ActaMed makes to the code in Cosmos or any other
computer system proprietary to UHC. ActaMed agrees to assign and hereby assigns
and transfers to UHC any and all rights which ActaMed may have in such code,
including any copyright, patent, trademark, trade secret and other intellectual
property rights. ActaMed will cooperate with UHC and will execute any
documentation reasonably required by UHC to assert or protect its property
rights in such code.
7. DEVELOPMENT OF NEW FUNCTIONALITY.
7.1 When ActaMed develops new functionality for the Network that
ActaMed
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offers generally to its customers, which is not included in a maintenance
release that ActaMed offers generally to its customers pursuant to paragraph
8.1, ActaMed will offer such new functionality to UHC on the same basis and at
a price equal to or better than that ActaMed offers it to other similarly
situated Network customers.
7.2 When UHC specifically requests development work from ActaMed,
for UHC's own use, the parties will negotiate a price at the time such work is
requested. If ActaMed will be permitted to use this custom work for other
customers, the price UHC pays ActaMed for such work will reflect that ActaMed
can sell it to others, and will recoup part of its costs that way.
7.3 When ActaMed performs development work on the Network at the
request of another customer, UHC shall have the right to obtain this same work
at a price not greater than the price the contracting party has paid for the
portion UHC is obtaing, as long as ActaMed has the legal right to offer such
work to UHC and such work is not proprietary to the contracting party.
7.4 If, at any time, UHC chooses to contract with ActaMed for a
dedicated services team from ActaMed to handle development of new functionality
and other changes to the Network, the Licensed Materials, or UHC's proprietary
systems which are not covered under maintenance, ActaMed will provide the
dedicated team on mutually agreeable terms and conditions.
8. ACTAMED'S MAINTENANCE AND SUPPORT OBLIGATIONS.
8.1 ActaMed's maintenance releases for the Network and the
Licensed Materials shall be denoted by a three digit number where the first
number is the version number, the second number is the level number, and the
third number (if it is greater than 1) is the build number. For example,
release 2.1.2 is a maintenance release for the version 2.1.1 software. ActaMed
will provide new maintenance releases at no charge to all its Network
maintenance customers, including, without limitation, UHC.
8.2 The price UHC will pay ActaMed under paragraph 12.1 for
ActaMed's maintenance services under this Agreement does not include
Enhancements to the Network Software, such as new Functions, significant
redesigns or improvements of current Functions, or significant advances in
system performance. Enhancements are contained in Actamed's new versions which
are denoted by a three digit number, the first digit of which is the version
number, the second digit of which is a level number, and the third digit of
which is 1. For example, version 2.1.1 is followed by new version numbers
2.2.1, 2.3.1, 2.4.1, 3.0.1, etc. ActaMed will make new versions of the Network
Software available to UHC upon payment in accordance with paragraph 7.1.
8.3 ActaMed will provide free Network maintenance and support
services to UHC at a minimum level which will meet or exceed the free Network
maintenance and support
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ActaMed provides to its other customers for the Network. ActaMed will also
provide the support and maintenance services to UHC which are specified on
Exhibit F attached to this Agreement. ActaMed will notify UHC of any technical
errors in the Network Software reported to the ActaMed help desk, and will use
reasonable efforts to provide customers with corrections of such technical
errors in a timely manner. ActaMed will provide all support and maintenance
services directly to UHC and the Providers who subscribe to the Network, as
required. UHC shall have no obligation to provide any support, training or
maintenance services to Providers, other than as specified on Exhibit F
attached to this Agreement. In order to allow UHC to implement a new release of
the Network or the Licensed Materials on an orderly schedule, ActaMed shall
maintain the current release and one prior release of the Network and the
Licensed Materials, at all times. The maintenance services specified in this
Agreement shall be provided at no cost to UHC beyond the fees set forth below
in section 12.
8.4 UHC inquiries and appeals will be handled by ActaMed within
time frames specified on Exhibit F or as mutually agreed to, and with the
utmost customer focus in mind.
8.5 ActaMed will maintain the security standards for the Network
which are set forth on Exhibit G attached to this Agreement.
9. EXCLUSIVITY.
9.1 UHC agrees to use the services of the Network under this
Agreement. UHC agrees that it will accept and attempt to
process all transactions listed on Exhibit H and intended for UHC which the
Network delivers to UHC. UHC will pay ActaMed for all such transactions
pursuant to paragraph 12.1 of this Agreement.
9.2 For the initial five year term of this Agreement (except as
otherwise permitted under this Agreement), UHC will not promote, develop, sell
or distribute any product which connects a Provider's desk top to a network for
communication of date, except as permitted under this Agreement. UHC also
agrees that it will not develop an interface for any third party, or provide
any third party with access to Cosmos or any other host computer under the
control of UHC for the purpose of developing an interface for any network that
competes with the Network, except to the extent UHC is allowed to work with
other vendors under this section 9 or UHC is allowed to continue existing
projects under paragraph 9.6.
9.3 For the initial five year term of this Agreement, UHC will
not promote or contract for services providing essentially the same
functionality as the Network from third party providers of a connection between
a Provider's desk top and a network for the communication of data, PROVIDED,
HOWEVER, that UHC shall not be required to terminate any existing contracts
with vendors of services similar to the Network (including, specifically, the
contracts entered into by The MetraHealth Companies, Inc.), which are listed on
Exhibit K attached to this Agreement. Prior to automatic or optional renewal of
any such contracts, however, UHC shall give ActaMed 15 business days in which
to bid on such contracts,
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pursuant to paragraph 9.7 of this Agreement. UHC shall cease actively promoting
any products similar to the Network from vendors other than ActaMed in markets
where ActaMed's services are available; provided, however, that UHC may promote
products similar to the Network in markets where ActaMed has waived its rights
under this section 9. Nothing in this paragraph shall limit UHC's ability to
meet its contractual obligations in such existing contracts, such as a
contractual obligation to perform specified promotional activities.
9.4 UHC agrees that, for the initial five year term of this
Agreement, UHC will not and will not permit any of its subsidiaries to,
directly or indirectly, (a) engage in or (b) have any ownership or equity
interest exceeding five percent in any business, firm, corporation, joint
venture, or other entity engaged in any business which competes with ActaMed's
Network product (a "Competitive Business"). However, nothing contained herein
shall prohibit UHC from acquiring any business, the principal line of business
of which is not a Competitive Business and less than fifty percent of the
revenues of which are derived from a Competitive Business. In such case, UHC
shall use its reasonable efforts to cause the competitive portion of such
business to be sold or disposed of as soon as reasonably possible, and, pending
such sale, shall not use such business in such manner as would violate the
provisions of this section 9 or seek to expand such business in a manner that
would substantially adversely affect ActaMed's rights hereunder. Not later than
one month following such acquisition, UHC shall give to ActaMed a notice of the
acquisition of such Competitive Business and set forth the net purchase price
(collectively, a "Sale Proposal") at which UHC would be prepared to sell such
Competitive Business to ActaMed. ActaMed she have the right to purchase such
Competitive Business for such terms or on such other basis as UHC and ActaMed
may actually agree. In the event that, within 60 days after ActaMed's receipt
of a Sale Proposal, UHC and ActaMed shall not have reached agreement that
ActaMed will acquire such Competitive Business, each of UHC and ActaMed shall
appoint an appraiser, which two appraisers shall select a mutually acceptable
third appraiser. As promptly as practicable such three appraisers shall
determine the fair value of the Competitive Business and shall notify UHC and
ActaMed of their determination. ActaMed shall have sixty days after such
notification in which to determine whether to acquire the CompetitiveBusiness
at the value so determined. If ActaMed does not elect to acquire the
Competitive Business at the appraised value, UHC shall be free to sell such
Competitive Business to another entity; PROVIDED, HOWEVER, that UHC shall not
sell such Competitive Business to another entity within six months after the
appraisers' determination on terms and conditions which are substantially more
favorable to such other entity than the terms and conditions last offered to
ActaMed.
9.5 The restrictions set forth in this section 9 shall apply only
to activities within North America.
9.6 Nothing in this section 9 shall be construed to prohibit UHC
from engaging in activities relating to or contracting with third parties
relating to the following, as long as each of the following is not intended
primarily as a connection from a Provider's desk to a
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network for communication of data:
(a) promoting, developing, using, selling, and distributing its
EmployerLink and LaborLink products and future versions of
them, and any other initiatives for employers and brokers,
and shall retain the right to contract with third parties to
perform any work relating to these products. UHC agrees,
however, that EmployerLink, LaborLink and such other
initiatives shall not be intended for use primarily as
connections to Providers' desk tops;
(b) using and developing Internet connections;
(c) electronic medical records and clinical data;
(d) electronic mail (other than e-mail to and from a Provider's
desk top);
(e) financial or banking electronic data interchange,
telecommunications networks, or EDI used by the UHC
purchasing department or other internal departments which are
not connecting to a Provider's desk top;
(f) EDI between clinics and other facilities owned and/or
operated by UHC;
(g) claims repricing; or
(h) UHC's "Total Recall" project, AdjudiPro product, or Q-Star
product, and all future versions of them.
9.7 In the event that this section 9 requires UHC to offer any
business opportunities or new development work to ActaMed, ActaMed shall notify
UHC of ActaMed's prices and terms for such business or work. If ActaMed
declines such business or work, or if ActaMed cannot provide the requested
business or work to UHC at a price competitive with the marketplace, UHC shall
have the right to contract with a third party for such business or work or to
do such business or work itself, and the provisions of this section 9 shall not
apply to such business or work. To determine whether ActaMed's price is
competitive with the marketplace, the parties shall consider, among other
things, the monetary costs bid by each vendor including the per transaction
cost, the projected volume from each vendor, the services level offered by each
vendor, and the differences in functionality offered by each vendor, and
whether ActaMed's connectivity or market penetration is available on either a
comparable or competitive basis. If the parties cannot agree upon whether
Healtheon's price is competitive with the marketplace, the parties shall
resolve the dispute pursuant to section 15. In the event that any customer
and/or supplier, including an integrated delivery system, of UHC or a UHC
Affiliate requires, as a condition of doing business with the customer or
supplier, that a different EDI system be-used in regard to that customer or
supplier, UHC shall use all reasonable efforts to encourage the customer or
supplier to utilize ActaMed's EDI system. In the event the customers or
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supplier refuses to do so, UHC or the UHC Affiliate may proceed to do business
with the customer utilizing the different EDI system.
9.8 For the initial five year term of this Agreement, ActaMed
agrees that it will not sell or distribute the Network in the Republic of South
Africa, except with UHC's prior, written approval.
9.9 This section 9 shall not preclude UHC from providing factual
information on other EDI vendors to Providers, as long as this section 9
permits UHC to work with such vendors and provided UHC does not promote such
vendors.
10. PERFORMANCE STANDARDS.
10.1 Exhibit I to this Agreement specifies the performance
standards and measurements ActaMed must achieve and the applicable time periods
for measuring compliance with the performance standards (the "Performance
Standards"). The parties shall measure, at a minimum, performance of ActaMed's
help desk and customer support and the Network. The goal of these Performance
Standards is to ensure that the performance of the Network during the term of
this Agreement meets or exceeds the performance of the ProviderLink Network
immediately prior to the Effective Date. In addition, ActaMed shall develop and
deliver to UHC, from time to time, ActaMed's plans to increase performance of
the Network beyond the minimum levels specified in Exhibit I.
10.2 The Performance Standards on Exhibit I apply only to
transactions sent from or to Cosmos. At any time that UHC uses a different host
computer to connect to the Network, the parties shall mutually agree upon
performance standards for the Network and its connection to the different host
computer, which shall become an amendment to this Agreement.
10.3 Any time that UHC's host computers are down and/or the down
time on UHC computers will not be counted as down time for the Network.
10.4 In the event that ActaMed fails to meet any Performance
Standard on Exhibit I in any month, ActaMed shall begin to diagnose the cause
of the failure to meet the Performance Standard promptly after being notified
of or discovering the failure to perform. Thereafter, ActaMed shall work
continuously and diligently to correct such failure to perform until it is
corrected. The failures to meet the Performance Standards which occur while
ActaMed is working to remedy the problem shall continue to be counted for the
purposes of paragraph 10.5.
10.5 In the event that ActaMed fails to meet any Performance
Standard on Exhibit I for two months in any six month period, ActaMed shall be
deemed to be in material breach of this Agreement, which allows UHC to
terminate this Agreement under paragraph 14.2 of this Agreement. In this event,
UHC shall also have the right, at its option, to
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terminate section 9 of this Agreement and retain the rest of the Agreement in
full force and effect, by giving the notice and opportunity to cure specified
in paragraph 14.2 of this Agreement.
11. REPRESENTATIONS AND WARRANTIES.
11.1 The parties agree that ActaMed owns the Network and ActaMed
represents that it has the right to license the Licensed Materials and grant
access to the Network to UHC. All rights in patents, copyrights, trademarks and
trade secrets encompassed in the Licensed Materials will remain in ActaMed or
its licensors, as applicable. No title to or ownership of the Licensed
Materials is transferred to UHC. UHC agrees that it does not obtain any rights
in the Licensed Materials except the limited right to use the Licensed
Materials as provided herein.
11.2 ActaMed agrees to defend UHC against and, to the extent of amounts
paid to third parties in infringement damage awards and approved settlement
awards, hold it harmless from all claims, damages and liabilities resulting from
a claim that the Network or the Licensed Materials (other than the version of
the Licensed Materials which ActaMed acquired from UHC) infringes a United
States patent or United States copyright, provided that UHC gives ActaMed
prompt, written notice of any such claim, sole control of the defense and
settlement of such claim, and all reasonable assistance to defend such claim.
UHC may appear in such action with counsel of its choice, at its own expense.
ActaMed shall have no obligations under this paragraph if such claims, damages
and liabilities result from UHC's breach of any term of this Agreement, UHC's
unauthorized use of or modifications to the Licensed Materials or the Network,
or the combination of the Licensed Materials with other materials not provided
by ActaMed.
11.3 If UHC's right to use the Licensed Materials or the Network is
enjoined or limited in any way, or if ActaMed believes that the Licensed
Materials or the Network is likely to become subject to such action, then
ActaMed, at its option and expense, may either:
(a) procure for UHC the right to continue to use the Licensed
Materials and the Network free from such limitations;
(b) modify the Licensed Materials and the Network to be free from
such limitations, but equivalent in all material functional
and performance respects to the Licensed Materials and
Network prior to such modification;
(c) replace the Licensed Materials and the Network with materials
that are free of claims, but equivalent in all material
functional and performance respects to the Licensed Materials
and the Network; or
(d) if none of the above are reasonably possible or likely to be
effective,
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terminate this Agreement and the licenses granted herein.
11.4 Except as set forth in this Agreement, ACTAMED EXPRESSLY
DISCLAIMS ANY WARRANTIES, EXPRESS OR IMPLIED, RELATING TO THE NETWORK OR
SERVICES TO BE PERFORMED BY ACTAMED HEREUNDER, INCLUDING, BUT NOT LIMITED TO,
THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE OR USE.
12. PRICES, PATENTS AND AUDITS.
12.1 For two years after the date of this Agreement, UHC will pay
ActaMed
(a) $15 per month per user site identification number established by
ActaMed at UHC;
(b) $15 per month per user site identification number established by ActaMed for
which UHC has agreed to be responsible; (c) $0.29 per transaction listed on
Exhibit H attached to this Agreement, which is sent by UHC and (d) $0.29 per
transaction listed on Exhibit H attached to this agreement. UHC shall not pay
for any transactions a Provider sends to a different payor. ActaMed shall not
charge UHC for any unclean transactions which are not able to access UHC's host
computer. These payments cover all license fees, subscription fees, and access
fees for usage of the Licensed Materials and the Network and all fees for the
maintenance services set forth in section 8.
12.2 The fees set forth in paragraph 12.1 do not cover charges for any
services UHC requests and obtains from ActaMed beyond the services specified in
paragraph 12.1, including, without limitation, file transfer of data,
installation, implementation or Enhancements of the Network, a particular sales
effort from ActaMed which ActaMed would not otherwise be providing, or a
telecommunications connection between the Network and UHC's host computers. For
all services UHC requests from ActaMed for which this Agreement does not set
forth a price (including, without limitation, UHC's request for a particular
sales effort from ActaMed which ActaMed would not otherwise be providing), UHC
shall pay ActaMed an agreed upon price. ActaMed shall not charge UHC anything
for installation and implementation of the Network at sites where UHC chooses
to do the installation and implementation itself. UHC shall pay all taxes
levied in connection with this Agreement, except for any taxes based on
ActaMed's net income.
12.3 After two years after the date of this Agreement, the parties
shall agree upon prices to supersede the prices in paragraph 12.1 of this
Agreement, which new prices shall be competitive with the marketplace. To
determine whether ActaMed's price is competitive with the marketplace, the
parties shall Consider, among other things, the costs per transaction, the
projected volumes, the services level offered, and the differences in
functionality offered by various vendors in the marketplace. If the parties
cannot agree upon whether ActaMed's price is competitive with the marketplace,
the parties shall resolve the dispute pursuant to section 15.
12.4 When ActaMed offers transactions other than those set forth on
Exhibit H,
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UHC will decide, in its sole discretion, whether it will agree to receive
and/or send such transactions. Upon deciding to receive and/or send any such
new transaction, UHC shall pay ActaMed a mutually agreeable price for its own
such transactions and for such transactions from any other user site
identification number where UHC (in its sole discretion) decides to be
responsible for the fees.
12.5 ActaMed will xxxx UHC monthly for the site and transaction fees
for UHC and any Providers where UHC has asked ActaMed to xxxx UHC directly, in
a mutually agreeable format. When ActaMed bills UHC for a Provider's site and
transaction fees, ActaMed shall not xxxx the Provider directly for the same
charges. Invoices will include any additional fees for other services purchased
by UHC. UHC agrees to pay all undisputed fees and expenses invoiced by ActaMed
within thirty days after receipt of each invoice, and to pay a late payment
charge equal to the lesser of 1 1/2% per month or the maximum rate allowed by
law on all amounts outstanding after thirty days.
12.6 ActaMed shall maintain accurate and complete books and records
regarding the transactions to and from UHC and the amounts ActaMed is charging
UHC under this Agreement, with a system of audit trails, records and controls
sufficient to satisfy the requirements imposed on ActaMed by its external
auditors and governmental regulators. UHC shall have the right, not more often
than once in each calendar year, to have employees or mutually agreeable
external auditors audit the books and records of ActaMed relating to UHC
transactions and charges for which UHC is responsible, to determine the proper
amounts which should have been billed to UHC, which were billed to UHC, and
which UHC has paid under this Agreement, and ActaMed's procedures for handling
transactions to and from UHC. UHC shall give ActaMed two weeks prior notice of
any such audit, and shall abide by reasonable ActaMed security and
confidentiality procedures during the audit. UHC shall bear the cost of such
audit, provided that in the event the audit determines that ActaMed has
overcharged UHC by more than five percent of the amount properly due ActaMed in
any month beginning on or after July 1, 1996, ActaMed shall pay all costs of
such audit.
12.7 ActaMed will, at its expense, provide UHC annually with a report
produced in accordance with standards established by the American Institute of
Certified Public Accounts' Statement on Auditing Standards Number 70: Reports
on the Processing of Transactions by Service Organizations. ActaMed shall
submit the first such report to UHC by the end of third quarter 1997.
13. CONFIDENTIALITY AND SECURITY.
13.1 "Proprietary Information" means information that is (a)
confidential to the business of a party, including, without limitation,
computer software source code, technical documentation and information
regarding proprietary computer systems, marketing and product development
plans, financial and personnel information, and other business information not
generally known to the public; and (b) is designated and identified as such
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by a party, or which the other party should have reasonably known was
confidential. Proprietary Information belonging to ActaMed includes, without
limitation, the Licensed Materials and the source code for its proprietary
software used in connection with the Network. Proprietary Information belonging
to UHC includes, without limitation, information relating to Cosmos or other
UHC computer systems, and information regarding UHC's members, Providers or
health plans. "Proprietary Information" does not include information which a
party had in its possession prior to receiving it from the other party, or
which a party properly receives from a third party, or which is or becomes
available to the public, or which a party independently develops without
reference to information received from the other party under this Agreement.
13.2 Proprietary Information and all physical embodiments thereof
received by either party (the "Receiving Party") from the other party (the
"Disclosing Party") during the term of this Agreement are confidential to and
are and will remain the sole and exclusive property of the Disclosing Party. At
all times, both during the term of this Agreement and after its termination,
the Receiving Party shall hold all Proprietary Information of the Disclosing
Party in confidence, and will not use, copy or disclose such Proprietary
Information or any physical embodiment thereof (except as permitted by this
Agreement), or cause any of the Proprietary Information to lose its character
as confidential information.
13.3 The Disclosing Party's Proprietary Information shall be
maintained under secure conditions by the Receiving Party, using reasonable
security measures which shall be not less than the same security measures used
by the Receiving Party for the protection of its own Proprietary Information of
a similar kind, and any specific security measures required by this Agreement.
The Receiving Party shall not remove, obscure or deface any proprietary legend
relating to the Disclosing Party's rights, on or from any tangible embodiment
of any Licensed Materials without the Disclosing Party's prior written consent.
Within thirty days after the termination of this Agreement, the Receiving Party
shall deliver to the Disclosing Party all Proprietary Information belonging to
the Disclosing Party, and all physical embodiments thereof, then in the
custody, control or possession of the Receiving Party.
13.4 If the Receiving Party is ordered by a court, administrative
agency or other governmental body of competent jurisdiction to disclose
Proprietary Information, or if it is served with or otherwise becomes aware of
a motion or similar request that such an order be issued, then the Receiving
Party will not be liable to the Disclosing Party for disclosure of Proprietary
Information required by such order if the Receiving Party complies with the
following requirements:
(a) If an already-issued order calls for immediate disclosure, then
the Receiving Party shall immediately move for or otherwise
request a stay of such order to permit the Disclosing Party to
respond as set forth in this paragraph 13.4; and
(b) The Receiving Party shall immediately notify the Disclosing Party
of the
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motion or order by the most expeditious possible means; and
(c) The Receiving Party shall join or agree to (or at a minimum shall
not oppose) a motion or similar request by the Disclosing Party
for an order protecting the confidentiality of the Proprietary
Information including joining or agreeing to (or not opposing) a
motion for leave to intervene by the Disclosing Party.
13.5 The Receiving Party shall immediately report to the Disclosing
Party any attempt by any person of which the Receiving Party has knowledge (a)
to use or disclose any portion of the Proprietary Information without
authorization from the Disclosing Party; or (b) to copy, reverse assemble,
reverse compile or otherwise reverse engineer any part of the Proprietary
Information (except as permitted herein).
13.6 Each party agrees not to disclose or utilize individual health
care claim information in any way that would violate any physician-patient
confidence or any state or federal regulations.
13.7 The obligations of this section 13 shall survive termination or
expiration of this Agreement as to any Proprietary Information which falls
under the definition of "trade secret" under the Uniform Trade Secret Act, as
adopted in the State of Georgia and as amended from time to time. For all other
information which falls under the definition of Proprietary Information used in
this Agreement, the obligations of this section 13 shall terminate five years
after termination or expiration of this Agreement.
14. TERM AND TERMINATION.
14.1 This Agreement commences as of the date set forth above and
continues for five years thereafter, unless earlier terminated as provided
herein. The parties shall mutually agree upon any renewal of this Agreement,
but the provisions of section 9 shall not be part of any renewal. Upon
termination or expiration of this Agreement, UHC's rights to use the Licensed
Materials and the Network shall cease.
14.2 If one party breaches any material provision of this Agreement, the
nonbreaching party may terminate this Agreement by giving 60 days written notice
of termination to the breaching party. If the breach is capable of being cured
and the other party acts diligently and continuously to cure such breach within
the 60 days, the termination shall not become effective. In the event ActaMed
attempts to terminate this Agreement pursuant to this paragraph 14.2 due to
UHC's failure to pay any undisputed amounts due, the sixty day notice and cure
period set forth above shall be reduced to fifteen working days.
14.3 If UHC or an affiliate thereof shall, at any time, cease to
manage or administer any Managed Plan, then, as of the date of such cessation,
this Agreement shall terminate as to such Managed Plan. UHC shall inform
ActaMed that an entity has ceased or will cease to be a Managed Plan promptly
after such information is known to UHC.
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14.4 Upon termination or expiration of this Agreement, the parties
shall cooperate in the orderly and reasonable removal of UHC from the Network.
The parties shall jointly develop a transition plan, which will allow UHC to
use the Network services for a mutually agreeable time after termination or
expiration, which shall be not less than three months. The transition plan will
provide for a reasonable level of support to transition UHC off the Network.
Each party will bear its own costs in developing the transition plan. During
such additional time, UHC shall continue to pay ActaMed all fees due under
section 12 of this Agreement. In the event that ActaMed has terminated this
Agreement pursuant to paragraph 14.2 due to UHC's failure to pay amounts due to
ActaMed, ActaMed will not be required to perform services for UHC or to allow
UHC access to the Network during the transition period unless UHC pays ActaMed
in advance for such services and Network access. UHC shall not be obligated to
pay any site or transaction fees that accrue after the effective date of
termination with respect to Providers that remain connected to the Network.
15. DISPUTE RESOLUTION.
15.1 In the event a dispute between ActaMed and UHC arises out of or
is related to this Agreement, either party may request in writing that the
representatives of the parties designated pursuant to paragraph 3.2 of this
Agreement meet and negotiate in good faith to attempt to resolve the dispute
without a formal proceeding. During the course of such negotiations, all
reasonable requests made by one party to the other for information, including
copies of relevant documents, will be honored. The specific format for such
discussions will be left to the discretion of the designated representatives.
15.2 If the designated representatives conclude in good faith that
amicable resolution through continued negotiation in this forum does not appear
likely, then the matter will be escalated to a joint panel of ActaMed and UHC
senior executives, by formal written notification by either party to the other.
This panel will meet as required to attempt to resolve the dispute. The number
and nature of the senior executives will depend on the issues in dispute, but
will include those senior executives with authority to resolve all matters in
dispute. At either party's election, this panel will be facilitated by an
external facilitator designated by both parties.
15.3 Formal proceedings for the resolution of a dispute may not be
commenced until the earlier of (a) the panel referred to in paragraph 15.2
concluding in good faith that amicable resolution through continued negotiation
of the matter does not appear likely; or (b) 30 days after the first notice of
the dispute was sent under paragraph 15.1 or paragraph 15.2. However, nothing
in this section 15 shall preclude either party from seeking temporary or
preliminary injunctive relief where a party determines in good faith that such
relief is necessary to limit its damage or injury under this Agreement.
15.4 In the event the dispute is not resolved as outlined in
paragraphs 15.1 and 15.2, and if either party wishes to pursue the dispute,
either party may submit it to binding
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arbitration in accordance with the rules of the American Arbitration
Association. In no event may arbitration be initiated more than one year
following the sending of written notice of the dispute. The parties shall
request a list from the American Arbitration Association of five possible
arbitrators who shall each have had at least five years experience in some
aspect of computer networking matters or health care. Each of the parties will
select one of these arbitrators and the parties or their selected arbitrators
shall jointly select the third arbitrator from the proposed list. Any
arbitration proceeding under this Agreement shall be conducted in Hennepin
County, Minnesota, Atlanta, Georgia, or in a mutually agreeable location. The
arbitrators shall have no authority to award any punitive or exemplary damages,
or to vary or ignore the terms of this Agreement, and shall be bound by
controlling law.
16. LIMITATION ON DAMAGES AND ALLOCATION OF RISK.
16.1 Except to the extent of ActaMed's obligation to indemnify UHC as
provided in paragraph 11.2, UHC's obligations under paragraph 12, and the
obligations of each party with respect to the intellectual property of the
other, IN NO EVENT SHALL EITHER PARTY'S LIABILITY TO THE OTHER PARTY (INCLUDING
LIABILITY TO ANY PERSON WHOSE CLAIM OR CLAIMS ARE BASED ON OR DERIVED FROM A
RIGHT OR RIGHTS CLAIMED BY THE OTHER PARTY) WITH RESPECT TO ANY AND ALL CLAIMS
ARISING FROM OR RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT IN CONTRACT,
TORT OR OTHERWISE, EXCEED FIVE MILLION DOLLARS ($5,000,000).
16.2 NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY (NOR TO ANY
PERSON CLAIMING RIGHTS DERIVED FROM THE OTHER PARTY'S RIGHTS) FOR INCIDENTAL,
CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES OF ANY KING (INCLUDING,
BUT NOT LIMITED TO, LOST PROFITS, LOSS OF BUSINESS OR OTHER ECONOMIC DAMAGE) AS
A RESULT OF BREACH OF THIS AGREEMENT.
16.3 Notwithstanding anything to the contrary set forth in this
Agreement, ActaMed shall not be responsible for any breach of this Agreement or
loss to UHC to the extent such breach or loss is caused by materials that
ActaMed purchased from UHC or services provided by UHC.
17. GENERAL.
17.1 This Agreement, including the Exhibits to it, constitutes the
entire understanding between the parties and supersedes all proposals,
communications and agreements between the parties relating to its subject
matter. However, this Agreement does not supersede the UHC Outsourcing
Agreement between ActaMed and UHC, dated December 4, 1995, as amended from time
to time. No amendment, change, or waiver of any provision of this Agreement
will be binding unless in writing and signed by both parties.
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17.2 This Agreement will be governed by and construed in accordance
with the laws of the State of Georgia applicable to contracts made and
performed therein.
17.3 Neither party may assign this Agreement without the prior,
written consent of the other party, which shall not be unreasonably withheld.
Any attempted assignment without such consent shall be void. Any assignment
with consent does not release the assigning party from any of its obligations
under this Agreement unless the consent so states. Notwithstanding the above,
however, ActaMed may assign this Agreement without UHC's consent to the
purchaser of all or substantially all the business or assets of ActaMed related
to the Licensed Materials and the Network, as long as the purchaser is not a
company which competes with UHC in any of the businesses UHC owns or operates
at the time of the assignment. If the parties cannot agree upon whether a
company competes with UHC in any of the businesses UHC owns or operates at the
time of the assignment, the parties shall resolve the dispute pursuant to
section 15.
17.4 Any notices relating to this Agreement shall be in writing and
will be sent by certified United States mail, postage prepaid, return receipt
requested, or by facsimile transmission or overnight courier service, addressed
to the party at the address set forth below, or at such different address as a
party has advised to the other party in writing and shall be deemed given and
received when actually received:
United HealthCare Corporation ActaMed Corporation
0000 Xxxx Xxxx Xxxx 0000 Xxxxxxx Xxxxxxx
Xxxxxxxxxxx, XX 00000 Suite 600
Attn: Chief Information Officer Xxxxxxx, Xxxxxxx 00000
Attn: President
17.5 In the event one or more of the provisions of this Agreement are
found to be invalid, illegal or unenforceable by a court with jurisdiction, the
remaining provisions shall continue in full force and effect.
17.6 The obligations of the parties under this Agreement (other than
the obligation to make payments) shall be suspended to the extent a party is
hindered or prevented from complying therewith because of labor disturbances
(including strikes or lockouts), war, acts of God, fires, storms, accidents,
governmental regulations, failure of telecommunications vendors or suppliers,
or any other cause whatsoever beyond a party's control. For so long as such
circumstances prevail, the party whose performance is delayed or hindered shall
continue to use all commercially reasonable efforts to recommence performance
without delay and shall declare a disaster under its disaster recovery plan.
17.7 Each party shall have the right to include the other party's name
on its customer or vendor list and to disclose the nature of the services and
products provided under this Agreement, so long as such services and products
are accurately represented; provided, however, that neither party has the right
to use the other's name, trademarks or
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trade names for other advertising, sales promotion, or publicity purposes
without the other's prior written consent.
17.8 During the term of this Agreement, neither party will solicit or
attempt to hire any individual who is then currently an employee of the other
party or who has been an employee of the other party within the six months
prior to the solicitation or hiring, without the other party's prior, written
consent. This paragraph 17.8 shall only apply to individuals who, in the case
of ActaMed, have performed services for UHC under this Agreement or worked in
connection with the Network or the Licensed Materials, or who, in the case of
UHC, have worked with ActaMed or received services from ActaMed, on behalf of
UHC.
THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION THAT MAY BE
ENFORCED BY THE PARTIES.
This Agreement may be executed in one or more counterparts each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date set forth above.
UNITED HEALTHCARE CORPORATION ACTAMED CORPORATION
By: /s/ Xxxxxxx X. Xxxxx By: /s/ Xxxxxxx X. Xxxxxx
------------------------------- -------------------------------
Its: Chief Operating Officer Its: President
------------------------------ ------------------------------
Date: Date: April 4, 1996
----------------------------- -----------------------------
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EXHIBIT LIST
Exhibit A: Managed Plans
Exhibit B: Licensed Materials
Exhibit C: Development Work in Progress
Exhibit D: Reports
Exhibit E: Escrow Agreement
Exhibit F: Network Maintenance and Support Services
Exhibit G: Security
Exhibit H: Transactions
Exhibit 1: Performance Standards and Methods of Measurement
Exhibit J: UHC Operating Environment
Exhibit K: MetraHealth EDI Contracts
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EXHIBIT A
MANAGED PLANS
Community Health Network of Louisiana, Inc. (purchase pending)
PHP, Inc. (Michigan)
PHP of Mid Michigan
PHP of South Michigan
PHP of Southwest Michigan
PHP of West Michigan
PHP of South Carolina
PHP of North Carolina, Inc. (purchase pending)
Physicians Plus Insurance Corporation
Allina
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EXHIBIT B
LICENSED MATERIALS
Right to Right to
Reproduce Modify
--------- ------
*User Manual, versions 2.1 and 2.2.5 No No
Portal Specifications No No
Communications Interface Document
HCFA Claim Validations
HCFA National Standard Format Claims
ANSI X12 837 Claims Format
Implementation Guide for Claims
ANSI Xl 2 835 Electronic Remittance Advice
UB92 Hospital Claim Format
DOS Command Line Routines
UNIX Command Line Routines
Training Materials
Version 2.2.5 Demo Disks and CSI Demo Disks Yes Yes
PL Training Manual Yes Yes
Network: EDI TCP/IP Interface Specification No No
Promotional Material
ProviderLink Brochure Yes Yes
ProviderLink Send Back Card Yes Yes
*ActaMed will, upon request from UHC, identify UHC as the sponsor and promoter
of these materials.
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EXHIBIT C
DEVELOPMENT WORK IN PROGRESS
Projects which are completed or will be completed by ActaMed as part of the
sale:
1. COSMOS Distributed 'A'
2. Ohio health plan merger
3. Separation of the EmployerLink-ProviderLink network. At that time, a
comprehensive list of hardware and software products required will be
provided to ActaMed.
4. ORBIT
5. MHS "Mail Rules"
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EMPLOYERLINK SPLIT FROM PROVIDERLINK NETWORK
PRODUCTION ENVIRONMENT
ACQUIRE ALTERNATE HARDWARE:
RS/6000 with AIX 20 hours, UHC
Compaq File Server 4 hours, UHC
MHS DOS Machine 2 hours, UHC
Mass archival storage (i.e. optical drive) 20 hours, UHC
General input and analysis 10 hours, PL
ACQUIRE ALTERNATE SOFTWARE:
Sybase license 10 hours, UHC
MHS 6 hours, UHC
Netware 2 hour, UHC
INSTALL VENDOR HARDWARE/SOFTWARE:
Unix machine (with Sybase, OEC DCE tools, etc.) 40 hours, UHC
Netware File Server 40 hours, UHC
MHS 10 hours, UHC
General input and analysis 10 hours, PL
SPLIT PRODUCTION EMPLOYERLINK NETWORK SOFTWARE FROM
PROVIDERLINK:
Udl 30 UHC, 15 PL
UtoA Router (clients & servers) 30 UHC, 8 PL
DCE privileges, NIS maps, user accounts 30 UHC, 8 PL
EmployeeLink registration process (primarily mail account) 50 UHC
Move source and object files 40 UHC, 20 PL
General input and analysis 15 hours, PL
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EXHIBIT D
REPORTS
REPORTS ACTAMED WILL PROVIDE TO UHC
The following reports will be provided to UHC from ActaMed on a routine
schedule as indicated.
- Orbit reports
Three monthly core operating reports, for each market, will be sent to each
health plan lead ProviderLink/EDI representative and a central UHC corporate
resource. (Available electronically or on paper as requested.)
UNI Access Status Report Monthly
Monthly Detail Transaction report by source UNI Monthly
Monthly Detail Transaction report by Destination Market Monthly
- Intercompany billing detail reports for use in determining
allocation of transaction expensed to the proper health plan or
business unit.
Summary of fees by health plan detailed by plan and DIV Monthly
Intercompany Billing Details-site fees, mail and Era transactions Monthly
Intercompany Billing Details-transaction charges Monthly
- Help Desk Reports
The following problem notification procedures will be performed by the ActaMed
Help Desk staff by call priority level. Severity levels are defined in Exhibit
1. Reporting on these activities will be provided to UHC upon request.
Severity 1 - High priority calls will be reported to a health plan on a daily
basis. A report listing each call and its status will be electronically mailed
or faxed the following morning. For a specific high priority call, if closure is
not expected within 4 hours, a call will be placed to the UHC health plan
ProviderLink representative. If the call is closed within 4 hours, notification
to UHC health plan ProviderLink representative via the next morning's E-mail
report is acceptable. If an UHC health plan ProviderLink representative cannot
be accessed "live", a voice mail will be left. Daily contact with the customer
is required until closure.
Severity 2 - Normal priority calls will also be reported on a daily report
listing each call and its status. No telephone calls will be placed to the plan
for these calls except on and as needed basis. Regular customer contact is
required until closure.
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Severity 3 - Low-priority calls will also be reported in a daily report to UHC
health plan ProviderLink representative containing all calls and status.
Customer contact is required as needed or when a course of action has been
determined.
- In the event that the ActaMed Help Desk computerized on-line problem
management tool is down, call information will be recorded manually
and entered into the system as soon as it becomes available.
- Required problem resolution timeframes are outlined in Exhibit D.
- ActaMed should prepare a quarterly Executive Summary report for UHC
management detailing the customer issues raised during this time frame
and the resolution of these problems.
- Network Availability Reports
Modem connectivity-actual performance to standard Monthly
Network Transaction Success rate by plan, and in the
aggregate Monthly
Host and Modem availability Monthly
- Itemization and accounting for the hours worked by the UHC Dedicated
Team, and a project status report on each item worked.
Reports UHC will provide to ActaMed
These reports will include data from health plans centralized on COSMOS, those
plans with decentralized UHC host systems including, but not limited to,
Complete, PrimeCare, Ramsay, UHC Illinois, etc., and all ex-MetraHealth systems
including the previous Travelers and Met Life systems.
UHC will provide a resource to coordinate the assembly of this data and will
serve as the contact for all questions regarding these reports.
- Membership data by health plan or market provided on paper or Monthly
electronically where available.
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- Claims receipts or processed claims, for all commercial UHC Monthly
health plans or markets, offices or systems, including the
total volume of claims received electronically by month and
year-to-date, if available, actual penetration percentages
by plans, market, offices or systems, and desired percentage
of electronic claim receipts.
- Decision Support System (DSS) Data will be extracted from Monthly
UHC health plans and markets to support the market analysis
done by ActaMed and for the prioritization of target
providers and potential prospects. (A sample report is
provided on Attachment 1)
- Physician and Hospital claims volume data for each health Quarterly
plan/market by Provider Number and/or submitting Entity
Tax ID including:
* total claims volumes received by each
provider/tax ID
* volume received electronically (EDI) by each
provider/tax ID
* volume received on tape/other by each
provider/tax ID, Monthly if applicable and
available
This information will be provided electronically, as available.
- Other data to be determined in the future to support the
analysis of new transactions as mutually agreed by both
parties.
- Strategic information from UHC related to EDI growth Quarterly
goals and objectives by health plan/market will be
provided to ActaMed as needed. This will include
pertinent project plans and other material/documentation
that will assist ActaMed to enhance and increase
electronic transactions for UHC.
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EXHIBIT E
MASTER ESCROW AGREEMENT
BETWEEN
PRODUCER AND FORT XXXX
This escrow agreement is intended for use by a Producer (Developer)
and Fort Xxxx Escrow Services, Inc. The Producer may escrow multiple products
under this agreement. In addition, multiple Licensees (End Users) may be
registered as beneficiaries of this agreement. Although each Licensee does not
sign the agreement, Fort Xxxx does notify them of the service.
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Master Escrow Agreement
This Master Escrow Agreement ("Agreement") is made as of this 20th day
of February, 1995, by and between ActaMed Corp. ("Producer") and Fort Xxxx
Escrow Services, Inc. ("Fort Xxxx").
PRELIMINARY STATEMENT. Producer intends to deliver to Fort Xxxx a
sealed package containing magnetic tapes, disks, disk packs, or other forms of
media, in machine readable form, and the written documentation prepared in
connection therewith, and any subsequent updates or changes thereto (the
"Deposit Materials") for the computer software products (the "System(s)"), all
as identified from time to time on Exhibit B hereto. Producer desires Fort Xxxx
to hold the Deposit Materials, and, upon certain events, deliver the Deposit
Materials (or a copy thereof) to those persons or entities listed from time to
time on Exhibit C hereto as a licensee of Producer ("Licensee"), in accordance
with the terms hereof.
Now, therefore, in consideration of the foregoing, of the mutual
promises hereinafter set forth, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree
as follows:
1. DELIVERY BY PRODUCER. Producer shall be solely responsible for
delivering to Fort Xxxx the Deposit Materials as soon as practicable. Fort Xxxx
shall hold the Deposit Materials in accordance with the terms hereof. Except as
provided in Section 10 below, Fort Xxxx shall have no obligation to verify the
completeness or accuracy of the Deposit Materials.
2. DUPLICATION; UPDATES.
(a) Fort Xxxx may duplicate the Deposit Materials by any means in
order to comply with the terms and provisions of this Agreement, provided that
the Licensee to whom a copy of the Deposit Materials is to be delivered
pursuant to the terms hereof shall bear the expense of duplication.
(b) Producer shall deposit with Fort Xxxx any modifications, updates,
new releases or documentation related to the Deposit Materials by delivering to
Fort Xxxx an updated version of the Deposit Materials ("Additional Deposit") as
soon as practicable after the modifications, updates, new releases and
documentation have become generally available to Producer's Licensees, but in
any event within thirty (30) days following the first delivery to any Licensee.
When Producer delivers an Additional Deposit to Fort Xxxx, Fort Xxxx shall
return to Producer the previous Deposit Materials it held in custody, except
for the Deposit Materials that were the subject of the most recent previous
deposit. Except as provided in Section 10 below, Fort Xxxx shall have no
obligation to verify the accuracy or completeness of any Additional Deposit or
to verify that any Additional Deposit is in fact a copy of the Deposit
Materials or any modification, update, or new release thereof.
3. NOTIFICATION OF DEPOSITS. Simultaneous with the delivery to Fort
Xxxx of the Deposit Materials or any Additional Deposit, as the case may be,
Producer shall deliver to Fort Xxxx and to each Licensee a written statement
specifically identifying all items deposited and stating that the Deposit
Materials or any Additional Deposit, as the case may be, so deposited have been
inspected by Producer and are complete and accurate. Within five (5) days of
receipt by Fort Xxxx of the Deposit Materials or any
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Additional Deposit, Fort Xxxx will send notification of such receipt via
certified or registered mail to the Licensee(s).
4. DELIVERY BY FORT XXXX
4.1 DELIVERY BY FORT XXXX TO LICENSEES. Fort Xxxx shall deliver
the Deposit Materials, or a copy thereof, to a Licensee only in the event that:
(a) Producer notifies Fort Xxxx to effect such delivery
to a Licensee or Licensees at a specific address or addresses, the notification
being accompanied by a check payable to Fort Xxxx in the amount of one hundred
dollars ($100.00); or
(b) Fort Xxxx receives from any Licensee:
(i) written notification that Producer has
failed in a material respect to support the
applicable Systems as required by a valid
and existing license agreement ("License
Agreement") between Licensee and Producer or
that Producer has generally ceased its
business of supporting the applicable
systems ("Producer Default");
(ii) evidence satisfactory to Fort Xxxx that
Licensee has notified Producer, at least ten
(10) days prior to the notice to Fort Xxxx,
of such Producer Default in writing;
(iii) a written demand that the Deposit Materials
be released and delivered to Licensee;
(iv) a written undertaking from the Licensee that
the Deposit Materials being supplied to the
Licensee will be used only as permitted
under the terms of the License Agreement;
(v) specific instructions from the Licensee for
this delivery; and
(vi) a cashier's check payable to Fort Xxxx in
the amount of five hundred dollars
($500.00).
(c) If the provisions of paragraph 4.1(a) are satisfied,
Fort Xxxx shall, within five (5) business days after receipt of the notification
and check specified in paragraph 4.1(a), deliver the Deposit Materials in
accordance with the applicable instructions.
(d) If the provisions of paragraph 4.1(b) are met, Fort
Xxxx shall, within five (5) business days after receipt of all the documents
specified in paragraph 4.1(b), send by certified mail to Producer a photostat
copy of all such documents. Producer shall have thirty (30) days from the date
on which Producer receives such documents ("Objection Period") to notify Fort
Xxxx of its objection ("Objection Notice") to the release of the Deposit
Materials to a Licensee and to request that the issue of Licensee's entitlement
to a copy of the Deposit Materials be submitted to arbitration in accordance
with the following provisions:
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(i) If Producer shall send an Objection Notice
to Fort Xxxx during the Objection Period,
the matter shall be submitted to, and
settled by arbitration by, a panel of three
(3) arbitrators chosen by the Atlanta
Regional Office of the American Arbitration
Association in accordance with the rules of
the American Arbitration Association. The
arbitrators shall apply Georgia law. At
least one (1) arbitrator shall be reasonably
familiar with the computer software
industry. The decision of the arbitrators
shall be binding and conclusive on all
parties involved, and judgment upon their
decision may be entered in a court of
competent jurisdiction. All costs of the
arbitration incurred by Fort Xxxx, including
reasonable attorneys' fees and costs, shall
be paid by the non-prevailing party.
(ii) Producer may, at any time prior to the
commencement of arbitration proceedings,
notify Fort Xxxx that Producer has withdrawn
the Objection Notice. Upon receipt of any
such notice from Producer, Fort Xxxx shall
reasonably promptly deliver the Deposit
Materials to the Licensee in accordance with
the instructions specified in paragraph
4.1(b)(v).
(e) If, at the end of the Objection Period, Fort
Xxxx has not received an Objection Notice from Producer, then Fort Xxxx shall
reasonably promptly deliver the Deposit Materials to the Licensee in accordance
with the instructions specified in paragraph 4.1(b)(v).
4.2 DELIVERY BY FORT XXXX TO PRODUCER. Fort Xxxx shall release and
deliver the Deposit Materials to Producer upon termination of this Agreement in
accordance with paragraph 7(a) hereof.
5. INDEMNITY. Producer and any party claiming beneficiary status under
this Agreement shall indemnify and hold harmless Fort Xxxx and each of its
directors, officers, agents, employees and stockholders ("Fort Xxxx
Indemnities") absolutely and forever, from and against any and all claims,
actions, damages, suits, liabilities, obligations, costs, fees, charges, and any
other expenses whatsoever, including reasonable attorneys' fees and costs, that
may be asserted against Fort Xxxx Indemnitee in connection with this Agreement
or the performance of Fort Xxxx or any Fort Xxxx Indemnitee hereunder, except as
a result of the negligent act or omission on the part of Fort Xxxx or any Fort
Xxxx Indemnitee.
6. DISPUTES AND INTERPLEADER.
(a) In the event of any dispute between any of Fort Xxxx, Producer
and/or any Licensee relating to delivery of the Deposit Materials by Fort Xxxx
or to any other matter arising out of this Agreement, Fort Xxxx may submit the
matter to any court of competent jurisdiction in an interpleader or similar
action. Any and all costs incurred by Fort Xxxx in connection therewith,
including reasonable attorneys' fees and costs, shall be borne by the party
seeking the copy of the Deposit Materials.
(b) Fort Xxxx shall perform any acts ordered by any court of
competent jurisdiction, without any liability or obligation to any party
hereunder by reason of such act.
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7. TERM AND RENEWAL.
(a) The initial term of this Agreement shall be two (2) years,
commencing on the date hereof (the "Initial Term"). This Agreement shall be
automatically extended for an additional term of one year ("Additional Term") at
the end of the Initial Term and at the end of each Additional Term hereunder
unless, on or before ninety (90) days prior to the end of the Initial Term or an
Additional Term, as the case may be, either party notifies the other party that
it wishes to terminate the Agreement at the end of such term.
(b) In the event of termination of this Agreement, Producer shall
pay all fees due Fort Xxxx and Fort Xxxx shall promptly notify all Licensees
that this Agreement has been terminated and that Fort Xxxx shall promptly return
to Producer all copies of the Deposit Materials then in its possession.
8. FEES. Producer shall pay to Fort Xxxx fees in accordance with
Exhibit A as compensation for Fort Xxxx'x services under this Agreement.
(a) PAYMENT. Fort Xxxx shall issue an invoice to Producer
following execution of this Agreement ("Initial Invoice"), on the commencement
of any Additional Term hereunder, and in connection with the performance of any
additional services hereunder. Payment is due upon receipt of invoice. All fees
and charges are exclusive of, and Producer is responsible for the payment of,
all sales, use and like taxes. Fort Xxxx shall have no obligations under this
Agreement until the Initial Invoice has been paid in full by Producer.
(b) NONPAYMENT. In the event of non-payment of any fees or charges
invoiced by Fort Xxxx, Fort Xxxx shall give notice of non-payment of any fee due
and payable hereunder to the Producer and, in such an event, the Producer shall
have the right to pay the unpaid fee within thirty (30) days after receipt of
notice from Fort Xxxx. If Producer fails to pay in full all fees due during such
thirty (30) day period, Fort Xxxx shall give notice of non-payment of any fee
due and payable hereunder to the Licensee(s) and, in such event, the Licensee(s)
shall have the right to pay the unpaid fee within ten (10) days of receipt of
such notice from Fort Xxxx. Upon payment of the unpaid fee by either the
Producer or the Licensee(s), as the case may be, this Agreement shall continue
in full force and effect until the end of the applicable term. Failure to pay
the unpaid fee under this paragraph 8(b) by both Producer and the Licensee(s)
shall result in termination of this Agreement.
9. OWNERSHIP OF DEPOSIT MATERIALS. Fort Xxxx and Producer recognize and
acknowledge that ownership of the Deposit Materials shall remain with Producer
at all times.
10. BANKRUPTCY. Producer and Licensee acknowledge that this Agreement is an
"agreement supplementary to" the License Agreement as provided in Section 365(n)
of Xxxxx 00, Xxxxxx Xxxxxx Code (the "Bankruptcy Code"). Producer acknowledges
that if Producer as a debtor in possession or a trustee in Bankruptcy in a case
under the Bankruptcy Code rejects the License Agreement or this Agreement,
Licensee may elect to retain its rights under the License Agreement and this
Agreement as provided in Section 365(n) of the Bankruptcy Code. Upon written
request of Licensee to Producer or the Bankruptcy Trustee, Producer or such
Bankruptcy Trustee shall not interfere with the rights of Licensee as provided
in the License Agreement and this Agreement, including the right to obtain the
Deposit Material from Fort Xxxx in accordance with Section 3.
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11. MISCELLANEOUS.
(a) REMEDIES. Except for actual fraud, gross negligence or
intentional misconduct, Fort Xxxx shall not be liable to Producer for any act,
or failure to act, by Fort Xxxx in connection with this Agreement. Fort Xxxx
will not be liable for special, indirect, incidental or consequential damages
hereunder. Licensees are intended to be third party beneficiaries as to the
express rights and subject to the obligations set forth herein.
(b) NATURAL DEGENERATION; UPDATED VERSION. In addition, the
parties acknowledge that as a result of the passage of time alone, the Deposit
Materials are susceptible to loss of quality ("Natural Degeneration"). It is
further acknowledged that Fort Xxxx shall have no liability or responsibility to
any person or entity for any Natural Degeneration. For the purpose of reducing
the risk of Natural Degeneration, Producer shall deliver to Fort Xxxx a new copy
of the Deposit Materials at least once every three years.
(c) PERMITTED RELIANCE AND ABSTENTION. Fort Xxxx may rely and
shall be fully protected in acting or refraining from acting upon any notice or
other document believed by Fort Xxxx in good faith to be genuine and to have
been signed or presented by the proper person or entity. Fort Xxxx shall have no
duties or responsibilities except those expressly set forth herein.
(d) INDEPENDENT CONTRACTOR. Fort Xxxx is an independent
contractor, and is not an employee or agent of either the Producer or any
Licensee. The foregoing notwithstanding, nothing in this Agreement shall limit
any remedies to which Producer may be entitled, whether at law or in equity, in
connection with any claim relating to the misappropriation of confidential
information or trade secrets (including the Deposit Materials) or the violation
of any copyright or other intellectual property right of Producer. Licensee is a
party to this Agreement.
(e) AMENDMENTS. This Agreement shall not be modified or amended
except by another agreement in writing executed by the parties hereto, except
that Producer may modify this Agreement at any time without the consent of Fort
Xxxx to designate additional "Systems" on Exhibit B hereto and additional
Licensees on Exhibit C hereto, as appropriate.
(f) ENTIRE AGREEMENT. This Agreement, including all exhibits
hereto, supersedes all prior discussions, understandings and agreements between
the parties with respect to the matters contained herein, and constitutes the
entire agreement between the parties with respect to the matters contemplated
herein. All exhibits attached hereto are by this reference made a part of this
Agreement and are incorporated herein.
(g) COUNTERPARTS; GOVERNING LAW. This Agreement may be executed in
two (2) counterparts, each of which when so executed shall be deemed to be an
original and both of which when taken together shall constitute one and the same
Agreement. This Agreement shall be construed and enforced in accordance with the
laws of the State of Georgia.
(h) CONFIDENTIALITY. Fort Xxxx will hold and release the Deposit
Materials only in accordance with the terms and conditions hereof, and will
maintain the confidentiality of the Deposit Materials.
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(i) NOTICES. All notices, requests, demands or other
communications required or permitted to be given or made under this Agreement
shall be in writing and shall be delivered by hand or by commercial overnight
delivery service which provides for evidence of receipt, or mailed by certified
mail, return receipt requested, postage prepaid, and addressed as follows:
(i) If to Producer: to the address listed on the
signature page hereof
(ii) If to Fort Xxxx:
Fort Xxxx Escrow Services, Inc.
0000-X Xxxxxx Xxxxxx
Xxxxxxxxx, Xxxxxxx 00000-0000
Attn: Contracts Administrator
Copy: Xxxxxxx X. Xxxxx
Vice President
If delivered personally or by commercial overnight delivery service,
the date on which the notice, request, instruction or document is delivered
shall be the date on which delivery is deemed to be made, and if delivered by
mail, the date on which such notice, request, instruction or document is
received shall be the date on which delivery is deemed to be made. Any party may
change its address for the purpose of this Agreement by notice in writing to the
other parties as provided herein.
(j) SURVIVAL. Paragraphs 5, 6, 8, 9 and 10 shall survive any
termination of this Agreement.
(k) NO WAIVER. No failure on the part of any party hereto to
exercise, and no delay in exercising any right, power or single or partial
exercise of any right, power or remedy by any party will preclude any other or
further exercise thereof or the exercise of any other right, power or remedy. No
express waiver or assent by any party hereto to any breach of or default in any
term or condition of this Agreement shall constitute a waiver of or an assent to
any succeeding breach of or default in the same or any other term or condition
hereof.
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IN WITNESS WHEREOF each of the parties has caused its duly authorized
officer to execute this Agreement as of the date and year first above written.
Fort Xxxx Escrow Services, Inc.
By: /s/ Xxxxxxx X. Xxxxx
-----------------------------------------
Title: V.P.
-----------------------------------------
Producer
By: /s/ Xxxxx X. Xxx
-----------------------------------
Print Name: Xxxxx X. Xxx
-----------------------------------
Title: CFO
-----------------------------------
Address: 0000 Xxxxxxx Xxxxxxx, Xxxxx 000
-----------------------------------
Xxxxxxx, XX 00000
-----------------------------------
Phone: (000) 000-0000
-----------------------------------
Fax: (000) 000-0000
-----------------------------------
Attention: Xxxxx Xxx
-----------------------------------
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EXHIBIT A
Fees to be paid by Producer shall be as follows:
Initialization fee (one time only) $ 750 (payable for initial term only)
Annual maintenance/storage fee
- includes one Deposit Material update $ 800/Product
- includes two cubic feet of storage space
Annual Licensee registration fee FULL SERVICE
$ 150/Licensee
(foreign licensee $250)
Additional Updates $ 100/Product
(above one per year)
Additional Storage Space $ 150/Cubic foot
Payable by Licensee or Producer:
Due Upon Licensee's or Producer's
Request for Release of Deposit Materials $ 500
Fees due in full, in US dollars, upon receipt of signed contract or deposit
material, whichever comes first. Thereafter, fees shall be subject to their
current pricing, provided that such prices shall not increase by more than 10%
per year.
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EXHIBIT B
B1. Product Name:____________________________________________________________
Version #:_______________________________________________________________
Prepared/Confirmed by:________________________________________________________
Title:___________________________________ Date:__________________________
Signature:____________________________________________________________________
Type of deposit:
____ Initial Deposit
____ Update Deposit to replace current deposits
____ Other (please describe)_____________________________________________
ITEMS DEPOSITED:
Quantity Media Type Description of Material
A) ________ ____________ _______________________________________________
B) ________ ____________ _______________________________________________
C) ________ ____________ _______________________________________________
B2. Product Name:____________________________________________________________
Version #:_______________________________________________________________
Prepared/Confirmed by:________________________________________________________
Title:___________________________________ Date:__________________________
Signature:____________________________________________________________________
Type of deposit:
____ Initial Deposit
____ Update Deposit to replace current deposits
____ Other (please describe)_____________________________________________
ITEMS DEPOSITED:
Quantity Media Type Description of Material
A) ________ ____________ _______________________________________________
B) ________ ____________ _______________________________________________
C) ________ ____________ _______________________________________________
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EXHIBIT C
Licensees
Please list a primary contact person, company names, and address, as well as
telephone and facsimile numbers.
COMPANY NAME & ADDRESS
A.____________________________ Contact Name:____________________
______________________________ Telephone:_______________________
______________________________ Facsimile:_______________________
______________________________ Date:____________________________
Product Name and Version #_______________________________________________
B.____________________________ Contact Name:____________________
______________________________ Telephone:_______________________
______________________________ Facsimile:_______________________
______________________________ Date:____________________________
Product Name and Version #_______________________________________________
C.____________________________ Contact Name:____________________
______________________________ Telephone:_______________________
______________________________ Facsimile:_______________________
______________________________ Date:____________________________
Product Name and Version #_______________________________________________
(PLEASE COPY PAGE AS NECESSARY)
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FIRST AMENDMENT TO
MASTER ESCROW AGREEMENT
This First Amendment to Master Escrow Agreement (the "Agreement") is
made to that certain Master Escrow Agreement dated February 1995 (the "master
Escrow Agreement"), between Fort Xxxx Escrow Services, Inc. ("Fort Xxxx"), and
ActaMed Corp. (the "Producer"), to provide certain amended or revised terms to
the Master Escrow Agreement. The Master Escrow Agreement and this Amendment
together constitute the "Agreement" referred to in the Master Escrow Agreement.
All capitalized terms used in this Amendment and not defined herein have the
meaning provided for in the Master Escrow Agreement. In the event of any
conflict between the terms of this Amendment and the terms of the Master Escrow
Agreement, the terms of this Amendment shall govern and control.
In consideration of the sum of Ten Dollars ($10.00) in hand resolved,
and other good and valuable considerations, the receipt and adequacy of which is
hereby acknowledged, the parties hereby do agree as follows:
Section 4.1(b)(i) of the Master Escrow Agreement is deleted in its
entirety and the following is substituted thereafter:
(I) written notification that Producer has failed in material
respects to support the applicable Systems as required by a
valid and existing License Agreement ("License Agreement")
between Licensee and Producer, or that the terms of any other
agreement to which Producer and Licensee are a party provides
that Licensee is entitled to receive the Deposit Materials, or
that Producer has ceased the business of supporting the
applicable Systems ("Producer Default");
IN WITNESS WHEREOF, each of the parties has caused this Amendment to be
executed in duplicate originals by its duly authorized representative.
Fort Xxxx Escrow Services, Inc. ActaMed Corporation
By: /s/ Xxxx X. Xxxxxxx By: /s/ Xxxxx X. Xxx
-------------------------- -------------------------------
Name: Xxxx X. Xxxxxxx Name: Xxxxx X. Xxx
------------------------ -----------------------------
Title: Senior Account Manager Title: CFO
----------------------- ----------------------------
Date: 9/27/95 Date: 9/27/95
------------------------ -----------------------------
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EXHIBIT F
MAINTENANCE AND SUPPORT SERVICES
ActaMed will provide United HealthCare Corporation with the following hardware,
network and application (product) maintenance services which will be performed
by ActaMed staff not dedicated to UHC enhancements. The cost of these
maintenance services are provided as a part of the transaction and site fees,
and include:
- Correction of identified system bugs in the network hardware or
application;
- Changes and modifications to the ActaMed hardware, application and network
required to manage scalability and capacity issues associated with
increased transaction volumes;
- Changes required to maintain service level commitments as identified in
Exhibit I;
- Help Desk services as defined in Exhibit I, including appropriate staffing,
call response time, escalation procedures, reporting, availability,
severity levels, problem log tracking and problem resolution, etc;
- Maintaining the ORBIT system and accurately performing the provider
registration process on ORBIT to include the assignment of Site and Tax
ID's;
- User Security set up and processing;
- Marketing Group Product Support for maintenance of a COMPUTERIZED DEFECT
CONTROL SYSTEM problem log to include ongoing discussions between the Help
Desk personnel and the ActaMed development staff to communicate customer
needs and reactions to daily activity;
- Plan Rep Training for all current and future owned or managed plans as well
as UHC corporate staff;
- Plan Rep and Corporate training will be conducted at ActaMed locations
unless alternate locations are mutually agreed upon by both parties.
- Maintenance, monitoring and reporting of network and communication systems
regarding stability and performance as specified in Exhibit D;
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- Multi-Payor and Vendor technical and administrative support to insure
collection and transmission of maximum volumes of electronic claims to UHC;
Infrastructure will be upgraded by ActaMed as needed to accommodate
provider transactions to UHC;
- Maintenance of appropriate connectivity to UHC host systems to maintain
security provisions and data integrity of UHC transactions;
- Administer and maintain license agreement procedures with providers
assuring appropriate signatures and approvals from UHC providers;
- Provide routine, updated application and network documentation for UHC
sites and corporate;
- Maintain the network and application to assure data integrity of
transactions;
- Maintenance releases shall be defined to include any emergency releases
issued by ActaMed;
- Technology upgrades to the ActaMed hardware, network, and/or application
(to include such things as fault tolerance products and services) will be
included as part of ongoing maintenance;
- Provide ongoing support of and communication with the health plan
representatives on electronic commerce issues, targets and strategies;
- Provide monthly billing detail by health plan, and in the aggregate, for
all transaction activity.
- The following list of projects are "maintenance" and are part of the
general support activities provided by ActaMed:
1. TCP/IP socket interface to ESN
2. Claim Batch Processing (CPB) - Report Generation Redesign
3. TALX Voice Response system support
4. Identification of health plans by payer ID
5. Menu navigation and file transfer
6. Accept physician claims using HCFA NSF 2.0 format
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EXHIBIT G
ACTAMED PROVIDERLINK SECURITY
FUNCTION OBJECTIVE
To provide adequate data security given the confidential nature of the data and
the types of transactions performed on the ActaMed ProviderLink network.
Security related to ActaMeds ProviderLink is made up of multiple components:
Workstation security, network security and host security. This document will
concentrate on workstation and network security.
FUNCTION FEATURES
DATA OWNERSHIP
The ActaMed ProviderLink network is a system that enables communication between
a health care provider's place of business and payer host systems. While the
ActaMed ProviderLink network enables the flow of data between these entities, it
"owns" none of the data.
WORKSTATION SECURITY
ActaMed ProviderLink sites are identified by a site id. This site id is used by
the ActaMed ProviderLink network to control access. A provider's office will
install site security when installing the ActaMed ProviderLink application
software. In early versions of ProviderLink, this consisted of a hardware dongle
device with a hardwired site id. With the most recent version of the ActaMed
ProviderLink application, "Softlock" is used. The "Softlock" process writes the
site id to a physical sector on the hard disk, then writes the address of that
sector into each ActaMed ProviderLink application executable for decoding.
A user id is used within the ActaMed providerLink application to locally control
access to functionality. When the ActaMed ProviderLink application software is
installed, a default administrator user id is established. It is the
responsibility of the site administrator to define workstation user ids and
passwords, and the functions each can access. This allows the site to control
who has access to which functions of Actameds ProviderLink. The user id is
passed along with all transactions to the ActaMed's ProviderLink network, but
only the site id is used to control access within the network.
NETWORK SECURITY
The ActaMed ProviderLink will use the ORBIT tool to manage security. ActaMed
network security administrators will be responsible for registering provider
sites. When registering a site, the transactions a site can perform and the
payers that
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the transaction can be performed with are granted. The administrators also
register sites and providers with some of the payer host systems accessed via
ActaMed's ProviderLink.
The ActaMed ProviderLink network makes a call to the security gatekeeper with
every transaction after the point of entry into the ActaMed ProviderLink
network. The gatekeeper will return whether a site is authorized to perform the
requested transaction or not.
In addition, the functional software servers that make up the ActaMed
ProviderLink real-time network use a software ticketing scheme to control
access. Each functional server downstream from the gatekeeper call will check to
ensure that a valid ticket is passed as part of the call. In this manner, we
control access to a tightly defined path; in effect, if you know the internal
structure of the ActaMed ProviderLink network, you still cannot bypass the
security module to gain access to functionality.
HOST SECURITY
In general, host security is left up to the business partner that "owns" the
host. As necessary, the ActaMed ProviderLink network will provide information to
the host system to satisfy the security requirements.
In the case of COSMOS, ActaMed ProviderLink site id's are associated with Unisys
user ids. Also associated with each Unisys user id are transaction codes (xxxx
codes) and UHC provider ids. When transactions are performed to COSMOS, the site
id is converted to a Unisys user id; then the user id and xxxx code are checked
to ensure access is allowed. For provider sensitive transactions (referrals,
claim status, etc.), the provider association is also verified.
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ACTALINK SECURITY
FUNCTION OBJECTIVE
To provide adequate data security given the confidential nature of the data and
the types of transactions performed on the ActaLink network.
FUNCTION FEATURES
DATA FEATURES
ActaLink is a distributed database system which operates as if it were
centralized. It implements an abstract date model in a distributed database
system context. It supports operations that make it appear centralized to the
system user. The user need not be concerned with where the desired information
is stored.
Although a given user is provided with a centralized database view, the
information in the system is actually distributed over a set of remote
databases. These databases store all of the details for particular objects
defined by the abstract data model. The adstract data model is a set of
application dependent data structures.
The distribution of the detailed information assists in determining who owns
which information. The distributed nature of the database system makes the
precise definition of ownership very clear and intuitive, a characteristic not
shared by centralized databases.
NETWORK USERS
Network users have a login ID and a password. The password for a given login ID,
or user, expires at a configurable time interval. Once a user's password has
expired the network notified the user, who must immediately change his or her
password with a transaction designed for that purpose. From that time onward,
until the end of the next password expiration interval, the new password must be
used by the individual using the affected login ID.
All password administration and login ID authentication is managed centrally by
the ActaLink network security administrator.
WORKSTATION SECURITY
All ActaLink network workstations, wherever resident, become the responsibility
of a local network security adminsitrator. This administrator must define which
network users are permitted to login to ActaLink through their local
workstation(s). ActaMed provides the administrator with a special login ID and
passwork that are used only for the purpose of workstation security
administration. The local security administration uses this ID to grant other
ActaLink users permission to access ActaLink through that particular
workstation.
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The local workstation security administration account does not have ActaLink
network access, so the local security administrator must use a different account
for personal ActaLink network access. This reduces the probability that another
user could walk up to an existing open network session and grant themselves
access to the system without knowing the security administration ID or password.
A given ActaLink network user may be granted access to a variety of ActaLink
workstations in physician practices and hospitals, but only if the local
security administrators at each of those locations have authorized such access.
Accordingly, a physician can access the ActaLink system at his/her practice as
well as the hospital assuming that the physician has access privileges at the
hospital. This access can be granted with a single password and network ID.
USER ROLES
When a given user signs on to the network, the supplied password is validated
and the user's role is returned to the front-end application program. The
front-end application determines which functions are to be made available to the
user by decoding the user's role and uses the role to prevent the user from
accessing screens and controls which are not appropriate. The front-end
application only presents the user with facilities and services granted by the
network through the user role.
API CALLS
The ActaLink Application Program Interface (API) is composed of all the
procedures that user application programs may employ to search for, read, and
update information in ActaLink distributed databases.
All access to all databases in the ActaLink system via dynamic SQL are defeated
using network security configuration data under the direct and exclusive control
of the network security administrator. The only method of acquiring data or
updating it is through the ActaLink API calls. A user's access to the API is
governed by ActaLink transaction security.
ACTALINK TRANSACTION SECURITY
The privilege of using particular API calls is explicitly granted to each user
role independently. This permits the network security administrator to allow any
user with user role A to make calls in API call set 1, and users with role B to
make calls in API call set 2, allowing some calls to be included in both API
call sets (A & B). Call sets A & B correspondend to security domains, each of
which defines a set of network services to which a particular user role is
granted. As stated in the User Role section above, this transaction level
security is accomplished by disabling front-end transactions presented to the
user.
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EXHIBIT H
TRANSACTION DEFINITIONS
Professional Claims, Institutional Claims, and Encounters allow a user to enter
claims, and send transmissions to the Network for processing.
Claim Status Inquiry, which allows a user to inquire on the status of a pending
or processed claim.
Eligibility Inquiry, which allows a user to verify a member's eligibility and
obtain information about the member's co-pays and their effective and expiration
dates. A user can also obtain the member number, coordination of benefits and
primary care physician information, if available.
Referral ADD/DEL, which allows a user to submit referrals to the UHC mainframe
computer for processing or delete submitted referrals that are pending.
Referral Status Inquiry, which allows a user to inquire on the status of a
previously submitted referral.
ProviderLink Mail?Fax (which is always billed to the sender), which allows a
user to receive, read, print, create, and send electronic mail messages and
facsimiles to other users of the Network.
ANSI X12 834 Enrollment transactions allow employers to submit individual and/or
family enrollment data for eligibility in health plan benefit programs.
Provider Directory which allows a user to download provider demographic
information by speciality from the Network.
49
EXHIBIT I
PERFORMANCE STANDARDS
AND
METHODS OF MEASUREMENT
NETWORK AVAILABILITY
The network will be available 24 hours a day, 7 days a week with the exception
of scheduled downtime.
- During this time, ActaMed will achieve the following performance standards:
* 95% of the time or better, hardware and modems will be operational and
available for receiving/accepting calls. Hardware specifically
includes the ActaMed UNIX machines and the modems attached to the
hardware. Measurement will be weekly with reporting monthly.
* 90% or better successful modem connectivity, until 30 days after the
network is moved and is under the complete control of ActaMed, at
which time 95% or better successful modem connection performance will
be required. Of the calls attempted, ActaMed's bank of modems will
negotiate a successful connection and offer service 95% of the time.
This measurement will be based on statistics generated by the HDMS
modem rack network controller and will be measured weekly with
reporting monthly.
* 95% or better of transactions will be successful. Of the transactions
submitted to ActaMed, 95% of these will be successfully serviced.
Measurement will be weekly with reporting monthly.
The definition for transaction success will be those transactions that do not
result in a system generated, non-user created error. They may be categorized
into the following:
- transactions that return valid data
- transactions that return a meaningful message, but not an error (i.e. "Name
not found" when performing an eligibility inquiry by name.)
- transactions returning an error based on the information received (i.e.
"Unknown Request Format" which indicates an incorrectly formatted
transaction.)
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Transaction failures are defined as those transactions that fail due to a system
component failure (i.e. "Internal DCE Error" which identifies that a service
necessary to complete the transaction was not available). Transaction failures
will be recorded and measured according to the standards described above.
AVAILABILITY MEASUREMENT
Availability is measured as the number of ACTUAL hours available as a percentage
of total AVAILABLE hours. Planned systems downtime is NOT included in the total
availability time. The following definitions are used for calculating the
availability measurement:
- DEFINED HOURS are the total days in the month multiplied by 24 hours.
- PLANNED HOURS are the planned and published hours that any system is down
for maintenance or other planned outages.
- AVAILABLE HOURS are the Defined Hours minus the Planned Hours.
- UNPLANNED HOURS are the unplanned hours of downtime experienced during the
month.
- ACTUAL HOURS are the Available Hours minus the Unplanned Hours.
- AVAILABILITY PERCENTAGE is determined by dividing the Actual Hours by
Available Hours and multiplying the result by 100.
- CONNECTIVITY PERCENTAGE is determined by dividing the Total Successful
Calls to the system by the Total Attempted Calls and multiplying the result
by 100.
UHC will consider these performance standards achieved if the network
availability described above is achieved 95% of the time, or better. UHC will
consider less than 95% performance achievement within two months of any
consecutive six month period to be a material breach of this Service Level
Agreement.
Reporting as identified in Exhibit D will be the source documents from which
these standards will be measured. Compliance to these standards will be
determined by UHC upon reviewing the reports provided to the UHC/ActaMed
liaison.
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In the event that ActaMed cannot perform according to the standards because of
emergent situations. UHC will be notified following the emergency procedures
outlined in this document.
Reports on performance are due to UHC by no later than the 10th working day
following the end of the month.
LABORLINK SYSTEM
ActaMed will continue to support the batch processing of Allinas LaborLink
system, at the level of performance required for the ActaMed ProviderLink
network. ActaMed will deliver files to the Third Party Administrator's (TPA)
mailboxes as soon as UHC uploads the files to the network, usually available by
8:00 a.m. every Monday, which allows reports to be released to TPA's by noon on
Monday, fifty-two weeks a year.
DATA INTEGRITY
ActaMed will uphold the highest standard of integrity with regard to the
transmission and processing of transactions, reporting performance and service.
Information received from ActaMed will be correct, and without errors, [*] of
the time, measured monthly, unless otherwise stated in the SLA.
All updates from COSMOS or other UHC host systems will be promptly and correctly
applied 98% of the time.
ACTAMED PROVIDERLINK HELP DESK
Users, UHC health plans and business units agree to call the ActaMed
ProviderLink Help Desk at 000-000-0000 or 0-000-000-0000 for all problem
resolution when concerns cannot be resolved by the Health Plan, or a Health Plan
representative is not available. The ActaMed ProviderLink Help Desk will be open
from 7:00 a.m. - 5:00 p.m. CST, Monday through Friday. Voice mail is available
for after hour calls. Messages left on voice mail after business hours will be
retrieved the following business day.
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CALL DOCUMENTATION
Utilizing the ActaMed ProviderLink Help Desk computerized problem management
tool, the following information will be recorded on each call to the help desk:
Site ID (PC ID) Site Name Caller Name Phone Number
Health Plan Priority Level Date of Call Time of Call
Problem Code Call Recipient Problem Definition
Call Status Resolution Information
The ActaMed ProviderLink Help Desk will attempt to accommodate any requests for
additional information as long as the collection of the information does not add
significant time and effort in logging the call. The ActaMed ProviderLink Help
Desk statistics will be reported to UHC on a routine basis but will not be
integrated into any individual health plan's call tracking statistics.
DEFINITION OF THE PRIORITY LEVEL CLASSIFICATIONS
All calls will be assigned to one of three priority levels. The following
definitions will be used by the ActaMed ProviderLink Help Desk Representatives
to assign priority to calls:
SEVERITY 1 - A critical system or component is down or experiencing degraded
service causing UHC's or a customer's business functions to be halted
SEVERITY 2 - A single user is down, a component is experiencing degraded
service, or scheduled deliverables are unavailable. This does not have a
critical impact on the business, but may restrict function to some users and may
impact normal business operations.
SEVERITY 3 - A user's system is still operating but is experiencing difficulties
or a specially requested deliverable is unavailable.
The definition of each priority level and the classification of call types into
priority levels will be determined through negotiation between ActaMed and UHC.
The definitions may be reassessed and are subject to change. The ActaMed
ProviderLink Help Desk's method of classifying calls into priority levels will
be reviewed periodically with UHC. UHC will be responsible for defining
additional situations and communicating to ActaMed any requests on how to
classify particular call situations.
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In the event that the ActaMed ProviderLink Help Desk computerized on-line
problem management tool is down, call information will be recorded manually and
entered into the system when it becomes available.
MEASUREMENT
Objectives have been set for both the maximum time required for communicating
the current status and action plan to the user and to UHC for each priority
level and for the percentage of call volumes that will meet these objectives.
Measurement will begin when the problem is received by the ActaMed ProviderLink
Help Desk and recorded into the computerized on-line problem management tool.
Measurement will end when the call is closed, (i.e. the current status and
action plan is communicated to the user and the appropriate UHC health plan has
acknowledged the problem) by the ActaMed ProviderLink Help Desk representative.
It is the responsibility of the UHC health plan personnel to notify ActaMed
ProviderLink Help Desk when an open call has been resolved by a health plan
resource, but not communicated to ActaMed by the user.
The percent of calls closed within the time frame objectives will be measured by
calculating, by priority level, the volume of calls closed within the time frame
objectives as a percentage of total calls opened.
SALES, INSTALLATION AND TRAINING
When selling ProviderLink, UHC will ensure that the users conform to the
technical standards that have been established in the current version of
Schedule B of the ProviderLink License Agreement. UHC will continue to follow
ProviderLink approved installation procedures and will provide an adequate level
of user understanding of ProviderLink through appropriate training.
The ProviderLink health plan representatives will be trained by ActaMed as
described in Exhibit F. UHC recognizes that the quality of ActaMed's
ProviderLink Help Desk support is partially dependent on UHC's sales and
installation to sites with approved technical requirements and thorough training
of users.
CAPACITY PLANNING
UHC is responsible for providing the ActaMed's ProviderLink Help Desk with as
much information as possible to assist ActaMed in planning for the appropriate
levels of staffing to meet the service level objectives. Forecasts of site
sales,
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installation scheduling and specific events that will impact ActaMed's
ProviderLink volume of calls will be communicated to the best of UHC's ability.
Major support requirements will be communicated with a 90 day lead time,
whenever possible.
TECHNICAL MAINTENANCE/ENHANCEMENT SCHEDULING OBJECTIVES
PDR (PROVIDERLINK DEVELOPMENT REQUEST) PROCESS
ActaMed will have an established process for documenting all ProviderLink user
requests for correction of problems or the development of new functionality. All
requests are recorded into a computerized defect control system software product
including a detailed description of the requirements. All regular open requests
are reviewed by the ActaMed ProviderLink development team on a routine basis,
however, UHC will be responsible for establishing the development priorities.
ActaMed assumes the responsibility to make the development and maintenance
modifications based on UHC priorities.
DURING THE TRANSITION, ACTAMED PROVIDERLINK PRODUCT MARKETING WILL AID AND
CONTRIBUTE TO THE PRIORITIZATION OF UHC REQUESTS IF NEEDED. FOLLOWING THE
TRANSITION PERIOD, ACTAMED WILL CONSIDER THIS ASSISTANCE A LONG TERM BILLABLE
SERVICE.
NETWORK MAINTENANCE RELEASES
Regular ProviderLink network maintenance enhancements and fixes will be
completed and certified on a regular basis. They will be released into
production on Thursday evenings, AS AVAILABLE. Major software and hardware
releases will be scheduled to go into production on weekends. ActaMed will
communicate these changes to UHC on a regular, weekly basis.
EMERGENCY MAINTENANCE RELEASES
Emergency maintenance is defined as the correction of a technical bug or
omission in the existing functionality of ActaMed's ProviderLink presentation
software or network. The technical problem renders the ProviderLink feature or
user inoperable.
ActaMed will be responsible for ongoing monitoring and quality control of the
network and application. UHC will expect ActaMed to have a well defined problem
identification procedure to document and fix inoperable functionality before
recognized by UHC or its users. However, when this has not been
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accomplished, UHC will in cooperation with an ActaMed staff resource, complete a
PDR with as much information as is available, designate it as emergency, and
submit it to the ActaMed ProviderLink Product Marketing staff. The UHC/ActaMed
liaison is responsible for supporting ActaMed with the initial research and
documentation of the problem via the PDR.
The service level performance objective for emergency correction will be within
ten business days. Tracking of the fix will begin at the time of ActaMed's
receipt of the PDR. Emergency changes will be released on any given day. These
releases are not subject to the Thursday release schedule.
The correction of the emergency technical problem will be in the control of the
ActaMed development team. ActaMed is not responsible for correcting problems
located outside of the ActaMed ProviderLink presentation software or network,
i.e. a specific user's configuration, hardware problems, or technical problems
located within another vendor's software.
APPLICATION MAINTENANCE RELEASES
Application Maintenance releases will include maintenance and fixes of
presentation software bugs identified and documented in the PDR process. A
software bug is defined as existing functionality that fails to perform as
designed.
Where applicable, it will be the responsibility of UHC to assist
ActaMed/ProviderLink development in thoroughly researching user needs and
determining the implication of product changes on all stakeholders within United
HealthCare and ProviderLink end users.
The registration, installation and training of ProviderLink users on the
features of any maintenance release is the primary responsibility of UHC.
ENHANCEMENT RELEASES
All enhancements to the ActaMed ProviderLink software or network will be
provided to UHC health plans or affiliates as outlined in the Service Level
Agreement. Enhancements are defined as the addition of functionality that does
not currently exist in the ProviderLink system, or is currently not supported.
In addition, these releases may include maintenance and fixes of presentation or
other software bugs not included in the routine application maintenance
releases.
An enhancement release may also include modifications to any or all of the
current ProviderLink features of Claim Submissions, Eligibility, Referrals,
Referral Status, Claims Status, ProviderLink E-mail/Fax, and Provider Directory.
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Enhancements specific to UHC, and those created exclusively for UHC by the
ActaMed/UHC dedicated team, will be released according to the agreed upon
schedule. Information specific to the dedicated team and enhancements paid for
by UHC, will be outlined in the Dedicated Team Agreement.
It is the responsibility of UHC to assist ActaMed/ProviderLink development in
thoroughly researching user needs and determining the implication of product
enhancements on all stakeholders within United HealthCare and ProviderLink end
users.
The registration, installation and training of ProviderLink users on the
features of any new release is the primary responsibility of UHC. All requests
for the development of enhancements in functionality will be communicated to
ActaMed through the PDR process.
COMMUNICATION OF TECHNICAL REQUIREMENTS
The ActaMed ProviderLink development team will formally communicate to UHC's
health plan ProviderLink Managers, 90 days prior to release date, any
anticipated changes in standard hardware requirements, as defined in the current
version of schedule B of the ProviderLink License Agreement, that would impact
UHC's users of new ProviderLink software releases.
PLANNING FOR THE YEAR 2000
ActaMed will plan for, and successfully implement, changes to all applications
and network tools and services to accommodate the transition to the year 2000.
ActaMed will perform this task on internal software as part of the maintenance
agreement with UHC and will be done at no extra cost. If UHC data formats change
as a result of adding support for the year 2000, UHC will prioritize this
exclusive change for ActaMed and submit the change request for completion by the
UHC dedicated team.
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ALLINA SERVICE LEVEL AGREEMENT (SLA)
ActaMed will perform to the level of service described in the 1996 agreement
negotiated with Allina by the UHC EDI Services Department through the duration
of the 1996 calendar year.
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EXHIBIT J
UHC OPERATING ENVIRONMENT
(a) UHC will provide a WAN capable of routing TCP/IP communications traffic
between ActaMed and UHC Corporate.
(b) UHC will provide the asynchronous communications supporting communications
traffic between ActaMed, PrimeCare and all UHC health plans or business
units or outsourced systems requiring connectivity.
(c) UHC will provide the communications equipment necessary to support (a) and
(b). UHC will provide CSU/DSUs, FRACs, routers, and modems needed to
support the communications between ActaMed and the UHC WAN.
(d) UHC may establish firewalls and other security measures as appropriate to
control access to the UHC networks.
ATTACHED DIAGRAMS:
In the first diagram, labeled Attachment I, the division of responsibility is
identified by the vertical line. This division of responsibility is depicted
in more detail by the second diagram, labeled 'ProviderLink'. In the second
diagram, the cloud which represents the UHC WAN and the 3 large servers at the
bottom of the page (COSMOS, UHCI, PrimeCare, and future connections), are the
responsibility of UHC Corporate. The WAN cloud includes all communications
equipment necessary to connect the ActaMed LAN to the UHC WAN.
[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.
59
EXHIBIT K
EMC CONTRACTS
-------------------------------------------------------------------------------------------------------------------------------
VENDOR CONTRACT RENEWAL PRODUCTION FEES PER CLAIM CHARGE TO PROVIDER
DATE DATE DATE
-------------------------------------------------------------------------------------------------------------------------------
BCBS TX 10/4/94 Ongoing 3/1/95 .26 No Charge
(Submits via EDI - USA)
Equifax (CHN & ETS) 4/13/96 (2 yr) 6/10/94 10K free; .21 to 50K; .23 Flat & Xacl Charge
4/13/96 for 50K-100K; .25 for 100K+
CIS Technologies 3/3/95 Ongoing 10/1/95 .26 No Charge
Claims By Computer 7/21/95 Ongoing 7/21/95 .28 No Charge
CyData 4/6/95 Ongoing 1/21/95 .25 No Charge
EDI-USA 3/16/95 Ongoing 6/17/94 .33 No Charge (Not Explicit)
EDSS 8/3/95 Ongoing 8/14/95 .21 Some Charge
ENVOY 2/1/94 (2 yr) 4/30/94 .28; .04 bonus for 300K in No Charge
2/1/96 1994; .30 over 300K in 1994;
In 1995; .28 up to 720K; .30
over 720K; .04 bonus for
1-720K
ELECTRO CLAIM 2/15/96 Ongoing In progress .21 per claim. .23 per claim No Charge
(subsidiary of MED COMP) if 10,000 claims or more per
month
IMS 3/16/95 Ongoing 7/5/95 .10/encounter; .15/lab clm; No Charge
.25/other claims
MEDE AMERICA 2/6/96 Ongoing In Progress .225 No Charge
MED-LINK 6/21/95 Ongoing 6/28/95 .25 No Charge on new
TECHNOLOGIES providers
NDC - Pharmacy 10/27/94 Ongoing 2/3/95 .12 Standard Pharmacy
Charge
NEIC 7/1/94 Ongoing 1980 .35 Medical/Hospital
.30 Dental
PA BLUE SHIELD 6/14/95 Ongoing 8/29/94 .16 No Charge (Not Explicit)
QRS 5/5/95 Ongoing .25 No Charge
SYSTEM ONE 6/21/94 Ongoing 5/21/95 .30 .20-.32/claim with a
$100/mo. minimum
UNITED HEALTHCARE 8/11/95 Ongoing .29 $15/month
US HEALTHDATA 1/20/95 Ongoing 4/3/95 .25 No Charge
INTERCHANGE
NO-FEE SUBMITTERS WITHOUT CONTRACTS
Computer Technology 6/6/95 Billing Service
Corp. (CTC)
Xx. Xxxxxxxx 12/1/95 Hartford Physician
INACTIVE SUBMITTERS
INSURANCE BENEFIT 12/8/94 12/8/95 Never .15 No Charge
SPOT CHECK EXPIRED Submitted
MEDPOWER 8/1/94 8/1/95 Never .30 Some Charge
EXPIRED Submitted
PHIS(Left the Business) 9/21/94 9/21/95 5/15/95 .30 No Charge
EXPIRED
PROMPT SOLUTIONS 4/11/94 (2 yr) 6/20/94 29; 02 bonus for 25K in 12 No Charge
4/11/96 Stopped months of production; 30 for
Submitting 25K-50K; 03 bonus for 25-50K
in 12 months of production;
.33 for 50K+
STELLARNET 7/18/95 7/18/95 Never .25 No Charge
EXPIRED Submitted
[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTIONS.
