Voxcorp, Inc. (fka VOXR)

[VortMax]

What is Vox2data?

In April 2000, the Company acquired all of the issued and
outstanding common stock of HealthNetwork of America, a Nevada corporation dba Vox2Data ("Vox2Data"). Vox2Data is currently a wholly owned subsidiary of the Company engaged in the business of designing, developing, marketing, and selling a proprietary medical records system called the Vox2Data System that combines voice recognition technology with the database format used in electronic editing. In August 2000, Vox2Data acquired 100% of Pacific Voice, Inc. in a merger in consideration for the issuance of 415,000 shares of its common stock, or $415,000 in cash if the shares of common stock are not worth $415,000 by August 2001. The Company plans to market the Vox2Data System to hospitals and other medical facilities throughout the United States.

THE VOX2DATA SYSTEM. The Company's wholly owned subsidiary, Vox2Data, has developed a proprietary medical records system called Vox2Data. The Vox2Data System allows a physician to create a medical record by simply pushing a button and speaking into a microphone. The Vox2Data System combines voice recognition software, based upon the phonetic model, with the database format used in electronic claims editing. Immediate and accurate digital records of medical dictation are stored safely in a secure database, complete with the required coding data to assure error-free processing of medical insurance claims. The Vox2Data System eliminates transcription, minimizes human error, and allows physicians to use state-of-the-art technology to increase discretionary time. A printed report of the information is immediately available for e-mail or fax transmission to referring physicians, for printing and filing in the patient's medical record and for the patient.

Voice recognition technology fits nicely with the tradition of oral dictation and transcription in creating healthcare records. Management believes that the Vox2Data System is especially useful because it creates not simply electronic text but an electronic record linked to coding and billing procedures. Thus, patient information will not need to be transcribed, plus it also will not need to be re-entered for billing purposes, which management believes will result in substantial savings.

The Vox2Data System includes a hand held microphone, integrated with a computer mouse, that provides instantaneous recording of the physician's voice and conversion to data. Portable tape recorders may also be utilized and played directly into any computer equipped with Vox2Data. During dictation the physician is guided with compliance and required information entries through the use of programmable and automated forms.

The Vox2Data voice recognition system recognizes an individual physician's phonetic patterns. The system is combined with "Best Match Technology" (initially developed by Dragon Systems, Inc.), to maximize accuracy and speed during dictation. The Vox2Data System allows for the setup of unique specialty-specific electronic dictionaries or industry-standard language models that work effectively in multiple medical specialties and provide security for each physician's voice file and patient records.

The Vox2Data System is based on the use of structured/codified input. This means that the Vox2Data System first predetermines the full set of data items that will be utilized to document specific procedures and departmental standards of a patient's health and healthcare. These automated forms are customized to meet each hospital's specific requirements and are designed to be Medicare compliant. The physician uses her natural voice to select and enter relevant patient data directly into the computer system.

The Vox2Data System is a phonetic based system. It is not vocabulary based, but relies on acoustical data and phonetic patterns to accomplish completed physician dictation utilizing automated forms, software control of dictation and a simultaneous database application. When a physician speaks into the Vox2Data microphone, the system doesn't actually hear words or phrases. The computer picks out common sound patterns, known as phonemes. The Vox2Data System allows the physician to customize his response, based on past dictation, dialect, and specialty. A hand held recorder microphone or headset combined with a computer workstation provides for instantaneous recording of the physician's voice to data, rather than to text enabling the printing of information from the database in the format of traditional medical transcription. The same dictation information is then used in a database format to extract medical coding words for both procedures (CPT codes) and diagnosis (ICD-9 codes). This process then provides for the transfer of the coding information directly into a claims database utilized by electronic claims editing software for both the in-patient UB-92 form and the outpatient HCFA-1500 form. The creation of an insurance form can be simultaneous with dictation, or the database information can be transferred as a file to a different computer for creation of the insurance form internally or externally. Only fully edited claims with a high probability of payment on first submission are submitted through an electronic claims system.

System Features. The Vox2Data System offers the following unique features: (1) multiple physicians can utilize the same workstation, (2) each physician has her own secure voice file on one or more workstations, (3) workstations can be networked to provide for multiple locations for dictation, (4) with each dictation, if the System detects anything new in either the voice or phonetic language model, an individual physician's voice file and vocabulary file are updated automatically, (5) the System's automated recognition of new words is continuous during dictation, (6) and demographic information from the hospital, skilled nursing facility, or physician's practice management system may interface, but is not required.

System Implementation. The Company's management has developed the following approach for implementing the Vox2Data System at hospitals:

Preparation for Vox2Data Implementation. The Company plans to assign an on site customer service representative to each customer. Prior to orientation, the customer service representative will obtain a copy of previous dictation for each physician identified for the first phase of orientation. Previous dictation for each physician will be added to the Company's general medical vocabulary to increase the number of words and key phrases recognized by anticipating physician "phonemes patterns." Phrases used by each physician will be identified for immediate voice recognition. Hardware requirements will be determined and all hardware will be installed. The Company anticipates that no capital expenditure required by the hospital.

Initial Training for Physicians. The Company plans to capture individual physician's voice files during orientation. The Company anticipates having physicians read into the dictation microphone for five to ten minutes for voice orientation and phonemes patterns recording. The Company plans to present physicians with specialty specific pre-programmed automated forms for immediate elimination of transcription.

Department Implementation. The Company anticipates providing implementation workshops and conducting installation and orientation one department at a time. The Company plans to demonstrate the use of automated forms and to emphasize the use of fully automated forms with underlying software controls for programmed individual responses for each line of dictation. The Company also plans to make free form dictation available for physicians to use without automated forms where appropriate.

Continuous Monitoring After Implementation. The Company intends to have its customer service representatives periodically update Vox2Data software at each customer location. The Company plans to monitor physician utilization and to make individual recommendations to increase speed. The Company plans to provide periodic reports to each customer describing physician usage and other key data.

Continuous Development of Automated Forms. The Company anticipates that its customer service representatives will be able to develop automated forms based on hospital physicians' current dictation patterns and requirements. The Company anticipates a gradual transition by its customers to very precise, accurate, controlled, and fully automated forms. The Company plans to make all forms from the Company's master library of automated forms available to each customer.

Potential Market for the Vox2Data System. The Company believes that its Vox2Data System will appeal to several areas of the health care industry.

Hospital Management. Management believes that the Vox2Data System will appeal to hospital management because the System may assist hospital management to reduce its number of employees, lower capital expenditures, decrease outsourced transcriptions expenses and errors, and convert current work areas to new functions. Management believes that the Vox2Data System will dramatically affect three areas of hospital administrative overhead: transcription, coding, and billing.

Physicians. The Company anticipates that the Vox2Data System will give physicians immediate feedback on Medicare compliance during dictation and provide automatic completion and electronic signing of patient records. Physicians will be able to return to patient care quickly, minimizing time spent dictating and eliminating time spent reviewing hundreds of faulty transcribed reports.

Other Healthcare Providers. Two other market segments of the healthcare industry could become new markets for Vox2Data: Nursing and Residential Care Facilities and Social Assistance Service Providers. Together, these markets represent industries currently worth $150 billion a year. Nursing and Residential Care Facilities provide residential care combined with either nursing, supervisory, or other types of care as required by the residents. The facilities are a significant part of the production process and the care provided is a mix of health and social services. Social Assistance Service Providers provide a wide variety of social assistance services directly to their clients. These services do not include residential or accommodation services, except on a short stay basis.

Presbyterian Intercommunity Hospital. The Company recently entered into a Service and Software License Agreement with Presbyterian Intercommunity Hospital, a California nonprofit public benefit corporation ("PIH"), pursuant to which PIH will license the Vox2Data System from July 1, 2001 to December 31, 2005. In consideration for a license to use the Vox2Data System, PIH will pay the Company an installation fee of $19,400, a monthly service fee of $460 per moth for each workstation on which the Vox2Data System is installed and utilized, and an additional monthly service fee of $400 per physician who utilizes the Vox2Data System through PIH. After July 31, 2001, PIH has the right to terminate the Service and Software License Agreement at any time during the term of the Agreement upon 90 days prior written notice to the Company.