LodgeNet Interactive Creates Healthcare Subsidiary to Foster Continued Growth of Healthcare Business

Wholly-owned subsidiary to build on success leveraging proven industry-leading interactive communication solutions to help hospitals achieve a new level of patient engagement

SIOUX FALLS, S.D., July 19, 2011 /PRNewswire/ -- LodgeNet Interactive Corporation (NASDAQ: LNET), the leading provider of media and connectivity solutions to the hospitality and healthcare industries, today announced that it has reorganized its LodgeNet Healthcare group as an independent, but wholly-owned subsidiary to better maximize the potential success of its healthcare business. LodgeNet Healthcare, Inc. will be led by President Gary Kolbeck, who was previously general manager of LodgeNet Healthcare.

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The reorganization is designed to accomplish the following objectives:

  • To foster the continued growth of LodgeNet's healthcare business, which currently serves 60  hospitals and health systems with sophisticated, but easy-to-deploy and affordable patient engagement solutions,
  • To better facilitate the development of new and innovative solutions that meet the unique needs of the healthcare market, leveraging the experience of LodgeNet as well as the strengths of third party partners,
  • To provide a vehicle through which thought leaders in the healthcare industry and strategic partners can converge to help meet the evolving needs of hospitals and healthcare providers, and
  • To assist hospitals and healthcare providers in complying with the extensive and constantly evolving federal mandates related to patient engagement, the meaningful use of electronic medical records and improvement of patient outcomes, each of which can have a significant impact on Medicare reimbursements and the availability of other government incentives.

"After conducting a strategic review, we determined that the best way to enhance shareholder value and the success of the Healthcare group was not only to enable it to leverage synergies, but to develop and execute independently focused strategies based on the unique needs of the healthcare market," explained Scott C. Petersen, Chairman and CEO of LodgeNet Interactive. "This move demonstrates our strong commitment to proactively respond to the substantial demand for interactive patient engagement and accelerate decision-making to capitalize on the significant opportunities that demand represents. These solutions can help hospitals transform typically passive patients into more informed, involved, and active participants in managing their health before, during and after their hospital stay."

Looming health reforms, such as the implementation of value-based purchasing and the preventable hospital readmission program, focus on empowering patients and placing them at the center of healthcare decisions. The goals of these programs are to improve quality, safety, coordination and cost effectiveness of care by tying reimbursement and a hospital's profit or loss to clinical performance.

LodgeNet Healthcare's eSUITE™ interacts with patients throughout the entire care continuum. eXPRESS™ helps patients prepare for a hospital stay or procedure by providing relevant videos, timely reminders and more. eNGAGE™, an inpatient solution, prescribes and delivers education content to patients through in-room televisions based on an individual's specific diagnosis, age and language. He or she can also access information about their care team, condition, treatment, procedure, test, medication, daily schedule, and post-discharge instructions while still in the hospital, when they are able to interact with care providers. Patients can even use the interactive technology to order approved food and control their room's temperature and lighting. The system tracks viewership, measures patient understanding through a series of interactive questions on the TV, generates follow-up prompts for clinicians, makes it easy for hospitals to identify when additional patient counseling and intervention are necessary, and dynamically records all actions in the patient's electronic health record (EHR). Once patients leave the hospital, providers can use eXTEND™ to deliver personalized information via the patient's preferred bi-directional communication devices including mobile phones, home PCs and Web-enabled TVs.

According to Petersen, "Facilities that deliver high-quality and cost effective clinical outcomes will thrive while others will experience adverse effects to their bottom line because of reduced Medicare reimbursements. The more informed and involved patients are in their care, the better they, their hospital and the overall healthcare system will be, meaning that providers must fundamentally change how they interact with and treat patients inside and outside their four walls."

"Patient engagement is now a business necessity for all providers, and LodgeNet Healthcare is rapidly becoming a top resource for hospitals moving in this direction," added Gary Kolbeck, President of LodgeNet Healthcare, Inc. "This reorganization will enhance LodgeNet Healthcare's market responsiveness during a period of unprecedented change, opportunities and challenges."  

About LodgeNet Interactive Corp

LodgeNet Interactive Corporation is the leading provider of media and connectivity solutions designed to meet the unique needs of hospitality, healthcare and other guest-based businesses. LodgeNet Interactive serves approximately 1.8 million hotel rooms worldwide in addition to healthcare facilities throughout the United States. The Company's services include: Interactive Television Solutions, Broadband Internet Solutions, Content Solutions, Professional Solutions and Advertising Media Solutions. LodgeNet Interactive Corporation owns and operates businesses under the industry leading brands: LodgeNet, LodgeNetRX, and The Hotel Networks. LodgeNet Interactive is listed on NASDAQ and trades under the symbol LNET. For more information, please visit www.lodgenet.com.

LodgeNet, the LodgeNet logo, eSUITE, eXPRESS, eNGAGE and eXTEND are trademarks or registered trademarks of LodgeNet Interactive Corporation. All other trademarks are the property of their respective owners.

About LodgeNet Healthcare

LodgeNet Healthcare, Inc., a wholly-owned subsidiary of LodgeNet Interactive Corporation (NASDAQ: LNET), is the leading provider of patient engagement solutions designed to entertain, educate and empower patients. The company's interactive technology provides a cost-effective foundation to help hospitals comply with health reform mandates for patient-centered, collaborative care such as meaningful use, unnecessary readmissions, accountable care organizations (ACOs) and more. LodgeNet Healthcare offers eSUITE™, a shared decision-making tool that interacts with patients throughout the entire continuum of care using evidence-based engagement tools proven to improve clinical outcomes. Hospitals also benefit from LodgeNet Healthcare's professional services and consulting, patient-focused integrations and content solutions that are supported by the industry's only nationwide field service team. For more information, visit the LodgeNet Healthcare Website www.lodgenethealthcare.com.

SOURCE LodgeNet Interactive Corporation