August 5, 2005

Covisint has expanded into the field of health care. The company plans to launch a health care portal in December of this year, to better serve Michigan's health-care industry.

Last week, the company signed on Blue Cross-Blue Shield of Michigan as its first licensee. Covisint is a Compuware Corp. subsidiary that was originally formed to serve as a B2B and Internet portal for the automotive industry, and has General Motors, Ford and Daimler-Chrysler among its biggest customers.

The portal will let health-care professionals, hospital networks, and group members automate business transactions and share access to information via the Internet, Covisint says. That includes real-time claims processing and insurance eligibility authorization, as well as access to research, data on health-care and benefits programs, and electronic medical records.

Bob Paul, president and CEO at Compuware Covisint, says the portal will work particularly well for Michigan's auto industry, since it's already on the Covisint platform. "We'll be able to provide more accurate and real-time visibility to the auto industry's health-care plan and analytics to health-care groups to verify patients are getting the correct treatment," Paul says.

The Covisint Portal is part of Blue Cross Blue Shield of Michigan's plan to invest between $200 million and $300 million to modernize its technological infrastructure, simplify processes, and enable cost savings. The nonprofit company is the state's largest health insurance provider, serving more than 4.7 million members.

Covisint was formed by DaimlerChrysler, Ford, and General Motors and acquired by Compuware in 2004. Revenue for the subsidiary was up 68% last year, Paul says; Compuware doesn't disclose revenue amounts or other financial details about Covisint.

Studies have shown that health-care providers and the businesses they serve can save money by automating transactions, including electronic health records. GM, the world's largest automaker, spends about $5.1 billion in health care annually, or about $1,500 for every car it sells.

Source: Information Week