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TriZetto Inks Providence Health Plans

The TriZetto Group, Inc. , the Newport Beach, Calif-based healthcare ASP, today announced it has signed a licensing agreement with Providence Health Plans, a provider serving more than one million members in Oregon and southern Washington.

Under the agreement, Providence will use TriZetto's Facets managed-care administrative system, HealthWeb Internet platform, and new HIPAA Gateway product, which receives, routes, stores and queries electronic transactions in compliance with the Health Insurance Portability and Accountability Act of 1996 (HIPAA).

TriZetto says it will host and manage Providence's current administrative software while the new systems are being implemented,

According to Jack VanGraafeiland, chief information officer with Providence Health Plans, TriZetto's single-source strategy should prove an advantage for the managed healthcare organization.

"We prefer to use one vendor for all of the IT applications to improve efficiency. TriZetto's pre-integrated systems are expected to reduce implementation time and the technical challenges associated with integrating systems from disparate vendors," he says.

"TriZetto's ability to host our current systems during the implementation process will allow us to use our internal resources more effectively and to provide ample opportunity for staff training."

He explains that the solution it is providing Providence addresses IT concerns currently faced by many healthcare firms, such as the need to upgrade to an administrative system to handle HMO, PPO, Medicare and other diversified health plan products; the demand from health plan members and providers to complete online transactions; and the need to comply with HIPAA transaction and privacy rules.

"The challenges facing healthcare today are complex, like the industry itself," says Tony Bellomo, president of TriZetto's HealtheWare unit.

"That's why TriZetto's focus on healthcare is so important. We understand our customers' business challenges and provide solutions to meet their long-term needs."