CPM CORPORATION ANNOUNCES HEALTH PREDICTION TOOL

Customer Potential Management (CPM) Corporation, a pioneer in the development of Customer Relationship Management (CRM) solutions for healthcare, has announced a new system to help healthcare organizations determine who might get sick and need certain services. The identification of such individuals allows providers to help their patients receive the most appropriate services to improve wellness, approach disease more proactively, or to lessen the physical and financial burden of chronic illness.

The three levels of CPM's patent-pending Consumer Healthcare Utilization Index (CHUI) are more accurate in helping organizations determine who is the best audience for their programs and products than previous methods. That's because CHUI, unlike other segmentation systems, is based on health need and health variables rather than geography, attitudes and other non-health variables. Heart disease doesn't discriminate by neighborhood or attitude. Neither does breast cancer or diabetes.

CHUI was developed using state of the art data mining techniques, actual behavior and individual demographics, providing smaller, more relevant and more precise bits of data to forecast healthcare needs. Information from more than 20 million encounters using over 50 input variables were used to construct the three CHUI levels.

When a planner or healthcare strategist takes a CHUI level and applies it to the organization's customer database, it gives each individual a score from 1 - 999 rating the person's likelihood to utilize a particular service. The higher the CHUI score, the greater the need for services.

"We designed the different CHUI levels for specific business problems and applications," explains John Hallick, CPM president and CEO. "CHUI identifies healthcare risk the way a credit rating scores an individual's credit risk. In addition to predicting patient needs, CHUI minimizes the time necessary for data analysis and can lead to better utilization and disease management models."

The three CHUI categories are:

• CHUI I--Scores for each of the broad 25 major diagnostic categories (MDC) for inpatient hospital encounters such as digestive system, pregnancy and childbirth and the circulatory system.
• CHUI II--Scores for the ICD-9 code categories as well as other approximately 120 top diseases and procedures of the 21st century such as diabetes, weight management and cardiovascular disease.
• CHUI III--Scores for the 29diagnostic related groups (DRG) or medical service areas defined around hospital business lines such as cardiovascular medicine, endocrinology and urology.

CHUI applications include:

• Optimizing return on investment on a fixed budget. For example, an organization wants to market new cardiology services to men ages 35-55 in its service area, but can only afford to contact 20,000 in a market of 60,000. It determines CHUI III scores for cardiovascular medicine and contacts 20,000 men with the highest scores.
• Optimizing profit by communicating with individuals who have the highest CHUI scores in the service area until the incremental costs equal the incremental profit.
• Minimizing cost for service utilization by determining how to increase a service area's encounters by 100 or other required number.

By helping organizations better understand the individuals in their markets, CHUI can result in more focused programs, better resource allocation tied to predicted use, and more targeted efforts to keep patients healthier.

About CPM

CPM is a pioneer in the development of Customer Relationship Management (CRM) solutions, including information warehousing technology, delivery systems, and portals. Since its inception in 1981, CPM has achieved international recognition for solving healthcare, finance, and telecommunications business problems with this technology.

CPM's CRM integrated solutions allow businesses to maximize their customer relationships through market analysis, strategic planning and targeted personal communications. The foundation is an accessible, customer-centric Web warehouse that includes comprehensive individual and household data. CPM's suite of software tools provide easy and secure access to the data for individual snapshots of customers and prospects on a "segment of one" basis. For more information, visit www.cpm.com or call 1-800-332-2631.

Contact CPM-Customer Potential Management Corporation, Doug Zarvell, 309-698-1037, 800-332-2631, sales@cpm.com.