The Physician’s Answer to Compliance to Privacy Legislation November 2, 2001

Provides secure document access, storage and delivery to healthcare professionals Arca matrix

Problems Facing HCPs (Health Care Professionals) Information management problems Not enough time Poor security and confidentiality for patient records Inadequate secure storage and file delivery mechanisms Information retrieval is difficult due to lack of automation Loss of patient information impacts patient care

Problems Facing HCPs (cont’d) Transcription problems Transcription turnaround delays Original file erased after transcription Movement of tapes and transcribed files Imaging problems High cost of production and delivery Long turnaround time Loss of films or radiologist reports

Problems Facing HCPs (cont’d) Compliance to Privacy Regulations Proposed and existing federal & provincial regulations US must comply by April 2003 to HIPAA Privacy Regulations (enacted April 14, 2001) Most HCPs are unaware of pending or existing legislation

HIPAA Health Insurance Portability and Accountability Act Enacted to protect rights of US citizens to keep their medical records confidential Guidelines to be developed by Department of Health and Human Services Improve efficiency and effectiveness of healthcare system Protect the security and confidentiality of all individually identifiable health information

HIPAA (cont’d) Cost of compliance estimated to exceed $4 billion Fines and imprisonment for noncompliance by April 2003 HIPAA creates an incredible opportunity for an easy-to-use, cost-effective solution, especially for small practices

Some Statistics Smaller offices and clinics 65 + % of HCPs in Canada (CMA) 50 + % of HCPs in USA $6.6B spent on medical transcriptions each year 25% of health care costs spent inefficiently

Arcamatrix Solution Virtual Patient Chart Consolidates voice, text and images Easy to access (browser based, web based) Cost effective (pay as use) Transactional Easy to use zero footprint familiar practices

Arcamatrix Solution (cont’d) Challenges in building the solution Technical Compliance to Privacy Legislation--HIPAA and PIPIDA User adoption

User Adoption Challenges If we build it, will they use it? 85 + % of physicians offices have a computer (OMA, 2000) <10% of physicians offices have Internet connectivity (Web-Enabling Healthcare Marketing Conference, April 2001) 48% of HCPs use dictation

User Adoption (cont’d) Our approach Look at something that they already do (A to D) Provide technology wrapped up in Value Proposition and Return of Investment Partner with others for turn key for PC and connectivity

Compliance Challenges Our approach: Law alone does not imply implementation Build privacy and security in from the beginning- Transparent to the end user! Technology that allows for the HCP to be the custodian of the information

Compliance (cont’d) Stated and Agreed Upon Policies Service Agreement/Partnership with HCP Privacy Policy Service Agreement with contractors with stated procedures

Technical Challenges User interface Privacy Database integration and searchable voice, text and images Security Robustness

Arcamedx--User Interface 1- Dictate Document 2 - Logon to Arcamedx 3 - Select the service needed and upload the file

The physician can: Distribute voice, images or text files to other Arcamedx users Search for stored files Delete or archive stored files Inquire about system usage and billing Change passwords Notified by that file is ready from system or other user Arcamedx (cont’d)

Privacy Access Control Audit Trail Confidentiality of all information

Database Integration Qualified Oracle Database experience to integrate Oracle 8i Ability to search voice, text and images Different standards voice - proprietary HL7 Dicom

Security Information Security SSL (128) link level TDES Physical Security Firewalls Servers stored in secure and monitored area

Robustness Fully redundant configuration Fault tolerant storage Daily off-site backup Catastrophic contingency

Virtual Clinical Information System Integrates: EMR, HIS, RIS Practice Management & Laboratory Results Medical Images Acquisition Cost-effective Targeted market: 450,000+ ASP: Reduce capital cost expenditures

Virtual Clinical Information System (cont’d) Security End-to-end security (only physician can decrypt records) Digital envelope for document distribution Digital signature for patient records Integrity Non repudiation Certificate Authority (CA)

Virtual Clinical Information System (cont’d) Accessible Everywhere Securely Wired Wireless Secure Backup and Archiving for all HCP data

Clinical Information Systems Arcamedx ASP Virtual Patient Chart Delivery & Storage Secure Internet delivery Medical Image Acquisition PACS/Teleradiology DICOM EMR/HIS/RIS (HL7) Transcription Health Care Professionals Practice Management

Clinical Information Systems Arcamedx ASP Virtual Patient Chart Delivery & Storage Secure Internet delivery Medical Image Acquisition PACS/Teleradiology DICOM EMR/HIS/RIS (HL7) TranscriptionHealth Care ProfessionalsPractice Management

Clinical Information Systems Arcamedx ASP Virtual Patient Chart Delivery & Storage Secure Internet delivery Medical Image Acquisition PACS/Teleradiology DICOM EMR/HIS/RIS (HL7) TranscriptionHealth Care ProfessionalsPractice Management

Clinical Information Systems Arcamedx ASP Virtual Patient Chart Delivery & Storage Secure Internet delivery Medical Image Acquisition PACS/Teleradiology DICOM EMR/HIS/RIS (HL7) TranscriptionHealth Care ProfessionalsPractice Management

Clinical Information Systems Arcamedx ASP Virtual Patient Chart Delivery & Storage Secure Internet delivery Medical Image Acquisition PACS/Teleradiology DICOM EMR/HIS/RIS (HL7) TranscriptionHealth Care ProfessionalsPractice Management

Clinical Information Systems Arcamedx ASP Virtual Patient Chart Delivery & Storage Secure Internet delivery Medical Image Acquisition PACS/Teleradiology DICOM EMR/HIS/RIS (HL7) TranscriptionHealth Care ProfessionalsPractice Management

Clinical Information Systems Arcamedx ASP Virtual Patient Chart Delivery & Storage Secure Internet delivery Medical Image Acquisition PACS/Teleradiology DICOM EMR/HIS/RIS (HL7) TranscriptionHealth Care ProfessionalsPractice Management

Arcamatrix Differentiation Target physician practices, clinics, smaller hospitals 1-2, 3-25 Distribution through established medical product distribution Minimize capital expenditures for HCPs Security and Privacy focus Easy to use, cost effective solutions

Arcamatrix Contacts Toll free: Arcamatrix Corporation 2221 Yonge St. Suite 403 Toronto, Ontario M4S 2B4 Sherry Shannon-Vanstone, CEO Arcamatrix Incorporated 695 South Colorado Blvd. Suite 480 Denver, Colorado USA Chris Hovey, President