Banc One Expanding In Medical Field with A Wisconsin Contract

Advancing further into the health care information market that it entered a year ago, Banc One Corp. has forged an alliance with a second medical data network.

The Columbus, Ohio-based superregional made its first foray into the health care services business last January, when it bought System One, a Boulder, Colo.-based health care payment processor.

Now, Banc One is stepping up its efforts to build a new fee-producing niche by applying to the health care industry its experience in automating and regimenting back-office processes at banks.

Through its System One subsidiary, the bank has allied with the Wisconsin Health Information Network - another regional health care information provider - to allow members of both services to communicate electronically.

"WHIN and System One share the goal of applying proven network technology already used in the banking industry to health care," said Ray Croghan, the founder and president of System One.

The joint venture will promote electronic data interchange for both companies, decreasing the amount of time and money currently spent on processing, Mr. Croghan said.

Like similar alliances between automated teller machine networks, gateway connectivity between health care information networks is expected to benefit the customers - in this case, health care providers - and improve overall service.

According to Sarah Dodd, the vice president for operations at System One, the two companies complement each other: Wisconsin Health has focused primarily on clinical information, while System One contributes a technological, financial data focus.

System One has 14 payers in Wisconsin, including several insurance companies and health maintenance organizations. The Wisconsin Health network includes more than 1,100 doctors, 13 hospitals, and four insurance companies throughout the state.

The two companies are currently developing gateway software that would allow each organization's members seamless access to each other's services. This partnership will take effect in phases. Initial functions should be available in the first half of this year.

About $188 billion was spent on health care information administration and data processing in 1993, according to figures from System One and Wisconsin Health.

Other industry experts estimate that the medical industry spends as much as half of its $1 trillion annual budget on administrative functions.

Many banks and banking-related companies have been striving in the past few years to get involved in this market. In doing so, they hope to open a new outlet for existing banking services like lockbox and electronic data interchange.

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