Healthtech Holdings Acquires Medhost

February 1, 2010

HealthTech Holdings, Inc. (HHI), a healthcare technology holding company and parent of Healthcare Management Systems Inc. ® (HMS), announced today that it has acquired MEDHOST, the leading provider of emergency department information systems. The companies will develop an integrated emergency department system for the HMS enterprise-wide solution designed for community hospitals.

Investors in HealthTech Holdings, Inc. have experienced rapid growth with their initial investment in HMS and are expanding their holdings in health information technology with this acquisition. With this acquisition, HHI expects combined revenues in excess of $100 million in 2010. This acquisition comes on the heels of HMS’ recent addition of the HMS Ambulatory EHR, which enabled the company to offer a comprehensive clinical package that incorporates physician practice management and electronic health record functionality to facilitate seamless care for patients between the physician office and hospital. With MEDHOST, HMS will gain a new product as it rounds out its fully integrated and complete health information system offering.

MEDHOST is a market leader in emergency department software, making it an ideal addition to the HealthTech Holdings portfolio. It will continue to provide highly targeted and specialized emergency department systems for large community and tertiary hospitals. The collaboration opportunity for both companies lies in exploiting each other’s strengths. MEDHOST will develop a product designed for the community hospital market, utilizing the expertise of HMS and the company’s experience serving 650 community hospitals. This expansion will give MEDHOST a robust product mix that serves all segments of the hospital market. In addition, MEDHOST will have opportunities within the HMS customer base, to offer a fully integrated product with a consistent look and feel and all the benefits of the MEDHOST user experience.

“Recapitalizing our company provided the necessary financial strength we sought in order to continue our rapid growth in the ever-changing healthcare landscape,” said Craig Herrod, CEO of MEDHOST. “The combination of the two companies provides us the resources to expand our customer services, fast track our development innovations and reach new markets.”

“This is a win-win transaction,” said Tom Stephenson, CEO of HMS. “We will work together to gain the benefits of collaboration and capitalize on each other’s strengths, bringing to market a truly customized and integrated product for our target market.” HMS customers will benefit from the proven gains in productivity and safety brought on by automating emergency department visits. Moreover, MEDHOST’s automatic Charge Capture prevents lost charges and provides enhanced financial performance by calculating charges as care is documented. The system’s real-time notifications help keep ED clinicians and staff better informed about each patient’s status thereby improving quality of care.

About MEDHOST, Inc.
MEDHOST is a software solutions company that provides highly visual, easy to use process management technology for the healthcare industry. The MEDHOST product suite has been adopted by leading institutions throughout the United States and has proven to dramatically improve emergency department processes and financial performance. It is MEDHOST’s mission to ensure customer satisfaction by providing the highest levels of quality, performance and service. MEDHOST EDIS version 4.2 is a CCHIT Certified® 08 Emergency Department Electronic Health Record and includes real time Patient Tracking, Nurse Charting, Physician Documentation, Order Entry and comprehensive reporting. MEDHOST is headquartered in Addison, Texas.

About HMS, Inc.
Based in Nashville, Tenn., Healthcare Management Systems, Inc. (HMS) develops, sells and supports a full range of healthcare technology products that combines clinical, financial and patient access information. Founded in 1984, HMS currently serves 650 community hospitals; behavioral, rehabilitation and long-term acute care facilities; and multi-entity healthcare organizations nationwide. Visit www.hmstn.com for more information.

About HealthTech Holdings, Inc.
HealthTech Holdings, Inc. is a health information technology holding-company, with portfolio companies including HMS, MEDHOST and Sentry Healthcare Services, Inc. HealthTech Holdings mission is to acquire and manage technology companies focused on the creation of value for the healthcare industry.

Aileen Katcher, Katcher Vaughn & Bailey Public Relations
615-248-8202