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CyCare Systems Announces Merger with Richard D. Jugel & Company

Strategic Insights

— 1 min read

CyCare Systems, a leading provider of information systems to the healthcare industry, has announced an agreement to merge with Richard D. Jugel & Company, a Nebraska-based firm specializing in electronic data interchange (EDI) services. The merger, effective December 1, 1995, is expected to strengthen CyCare's market position and expand its services to healthcare providers and third-party payers. The combined companies will offer a comprehensive range of electronic transaction processing services, including the processing of hospital-based claims.

Key Takeaways:

  • The merger between CyCare Systems and Richard D. Jugel & Company will create a leading provider of electronic data interchange (EDI) services to the healthcare industry.
  • The combined companies will have a strong presence in over 40 states, with 4,500 providers and third-party payers currently using Richard D. Jugel & Company's EDI services.
  • The merger will enable CyCare to offer a new service for the electronic processing of hospital-based (UB92) claims, expanding its market opportunities and attracting healthcare providers and managed service organizations (MSOs) seeking a single-source solution.
  • The acquisition will also expand CyCare's presence in the Midwest and East Coast regions and provide a focused research and development expertise in national standards for sending and receiving electronic claims.
  • Richard D. Jugel & Company's customers have expressed high satisfaction with the quality of the software and services received, according to an independent customer survey.
  • The merger is expected to be a win-win situation for both companies, with CyCare's market position and EDI services complementing Richard D. Jugel & Company's products and services.

Statistics:

  • $900,000: The annual revenue generated by Richard D. Jugel & Company through its EDI services.
  • 4,500: The number of providers and third-party payers currently using Richard D. Jugel & Company's EDI services across over 40 states.
  • 1967: The year CyData, a wholly owned subsidiary of CyCare Systems, was formed.
  • 4,500: The number of medical group practices that have streamlined administrative functions through CyData's electronic data interchange services.

Sources:

  • CyCare Systems, Inc. press release, "CyCare Systems Announces Agreement to Merge with Richard D. Jugel & Company" (December 4, 1995)
  • Richard D. Jugel & Company, "Company History and Profile" (1985-1995)

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