TriLon Information Services
Executive Summary
www.trilonis.com

Company Profile

TriLon Information Services, owned and founded by William Long, has designed, developed, maintained and customized mission-critical applications in a variety of industries with an emphasis on managed health care. TriLon is now in the process of updating a comprehensive health care benefits administration system to be released as open source to the health care community. This system will replace the fragmented, expensive and often inadequate applications now being used. The vision is better and less expensive health care through effective provider-patient-payee information management.

Products and Services

The benefits administration system was originally developed for a health maintenance organization (HMO), and then redesigned and rewritten to give it the flexibility required by a third party administrator. The system has handled membership processing, eligibility determination, claims processing, billing, provider contract administration, provider capitation, utilization review, authorizations, referrals and Medicare. To comply with the Federal Health Insurance Portability & Accountability Act (HIPAA) of 1996, the system is being designed and coded for secure Internet communications and data transmission. Once TriLon completes the update, it will offer installation, conversion, training and custom development services on a fee-for-service basis.

Market Information and Strategies

There is a crisis in health care costs. According to health care leaders, eliminating the fragmentation of the current health care information infrastructure would save the health care industry up to $80 billion per year while improving the quality of care and decreasing the vulnerability of health care professionals to expensive litigation. An excellent benefits administration system, designed with the total infrastructure in mind, is a vital component. By developing and releasing the system under the open source General Public License (GPL), TriLon will be able to draw on the design, development and implementation expertise of the health care and open source communities without the limits that would normally be imposed by the necessity of keeping secret its intellectual property. The result will be a higher quality benefits administration system and ultimately a higher quality health care information infrastructure.

The benefits system will be released to a broad range of managed care and claims administration companies, including third party administrators, health maintenance organizations, preferred provider organizations, self-insured employers and group health insurance carriers. Because open source is released with no limit on its distribution, service becomes the only saleable product. Due to high software development costs and dependence on "vendor lock-in" to secure control of customer service, proprietary software companies will have difficulty competing solely on the basis of service quality and price. Additional competitive advantage for TriLon will be gained from being the owner of the brand identity and creator of the customer-subscriber committee controlling ongoing support.

Operations

Member-users will have open access to software changes and enhancements whether made by TriLon, by members of the open source community or by customers who have modified the system for their own use and then released the enhancements back to the main distribution of the system. By thus collaborating and distributing the costs of the development effort, the cost for each customer is minimized. Where necessary, custom coding by TriLon or by the customer will maintain closeness of fit to the distinctive information needs of each member company.

Seed Stage - remaining

Startup

Management Team

William Long – Mr. Long first developed the managed care system for PacifiCare, Inc., an HMO. The system's sophistication and ease of use gave PacifiCare a strong competitive advantage, contributing to its growth from a startup company to a $12 billion a year multi-state corporation. He then licensed it to a third party administrator (TPA). Because the application, although excellent for the HMO model, lacked the flexibility needed to easily handle the full range and combination of potential benefits required by a TPA, he redesigned and rewrote it. The owner of the TPA was very pleased with the accuracy, comprehensiveness, ease of use and "remarkable" flexibility.

Advisory Team

An advisory team exists on a consultant basis. Current advisors are:

Investors

Current investment has been from self, family and friends.

Financial Highlights (in thousands)

Capital Needs

TriLon is seeking $25,000 in seed-stage loan or equity funding to complete market research and to develop eligibility and employer modules to use for demonstration. The application will cost less than $200,000 to complete. First year staffing, servicing, marketing, and administrative costs are estimated to be $1.45 million.