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MERCY HEALTH CENTER RECEIVES DISEASE MANAGEMENT ASSOCIATION OF AMERICA AWARD FOR HEART FAILURE PROGRAM UTILIZING HEALTH HERO TECHNOLOGY
One Nurse Manages 425 Patients; Program Reduces Overall Costs

Laredo, Texas and Mountain View, Calif. —Oct. 31, 2002— Health Hero Network, Inc. today reported that the Disease Management Association of America (DMAA) selected a study done by Mercy Health Center as the “Best Poster” bronze award recipient at the Fourth Annual DMAA Leadership Forum. The award recognizes Mercy’s study of a telemedicine disease management program for indigent patients with congestive heart failure.

Mercy’s poster illustrated the program’s success, including a dramatic increase in medication compliance; patients went from 34% daily compliance at the beginning of the study to 94% after one year in the program. The percentage of patients that reported feeling more connected to their doctors, nurses and hospitals went up from 88% after three months to 95% at one year.

After one year, reductions in overall utilization and charges were demonstrated. The decrease in utilization equated to a reduction in overall charges of $13,159 per patient per year. The cost reduction was mainly a result of inpatient admissions being reduced by 41% (p<0.01).

“The DMAA Best Poster award is a significant honor because it recognizes our achievement in implementing a high-quality, cost-saving program for the uninsured. Our program improved medication compliance, patient satisfaction, and perceived quality of life for our patients while reducing our costs from high utilization,” said Christine Rodriguez from Mercy Health Center.

“Mercy’s outstanding program reduced utilization and cost of care while improving quality of life for historically underserved patients. Their outcomes again confirm that Health Hero’s technology enables healthcare professionals to provide efficient and effective disease management to all,” said Julie Cheitlin Cherry, Health Hero Network Medical Director.

Following the program evaluation period, Mercy’s telemedicine disease management program was expanded to include patients across three different disease states: diabetes, heart failure and hypertension. Today, a single care manager monitors approximately 425 patients in three disease states using Health Hero’s remote patient monitoring technology platform.

About Mercy Health Center
Mercy Health Center (MHC), a member of the Sisters of Mercy Health System - St. Louis Region, is located in Laredo, Texas along the U.S. - Mexico Border. MHC serves Webb County, where one in every three families lives at or below poverty level. There are 40-60 colonias, unincorporated areas with grossly sub-standard housing, in the Laredo area with an estimated 12,000 residents. Many residents speak only Spanish. The National Association of Community Health Centers (NACHC) ranked Webb County as 7th in the nation as a “double jeopardy” county, which is chronically disadvantaged in both the overall health of its residents and in the extreme shortage of primary care physicians. Approximately 50% of Laredo’s area residents are uninsured. MHC is the safety net for Laredo area residents in need of healthcare, providing millions of dollars of charity care annually. Given Laredo’s proximity to the border and its poverty rate, MHC is actively exploring ways to improve quality of life while reducing its risk as the primary provider to indigent residents.

About Health Hero Network
Health Hero Network, Inc., founded in 1988 and headquartered in Mountain View, California, develops and licenses industry-leading technology solutions for health monitoring and management. The Health Hero® technology platform offers Internet-enabled care management tools, multiple patient interfaces, and a secure environment for data communications. The Company’s product line includes Health Buddy®, Health Buddy™ Web and other licensee devices for data collection and communications with patients, and iCare Desktop™, an Internet-based care management and research solution for healthcare professionals. Health Hero offers over a dozen standard health management programs delivering daily monitoring & education and promoting positive behavioral change for better chronic care with lower costs to the healthcare system. Health Hero Network technology is protected by over 50 issued U.S. patents. For more information about Health Hero Network, visit www.healthhero.com.