8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
February 14, 2002

PROXYMED, INC.

(Exact name of registrant as specified in its charter)

Florida	0-22052	65-0202059
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2555 Davie Road, Suite 110, Ft. Lauderdale, Florida	33317-7424
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code         (954) 473-1001      

Item 5. Other Items.

     The Company's press release dated February 13, 2002 reporting financial results for the three months and year ended December 31, 2001 is attached.

Item 9. Regulation FD Disclosure.

     On February 14, 2002, the ProxyMed, Inc. (the “Company”) held a teleconference call to report its financial and operating results for the quarter and year ended December 31, 2001. A transcript of the call, excluding questions from participants and answers from management, is attached.

     FORWARD LOOKING STATEMENTS — This document, including the exhibits attached hereto, contains forward-looking statements that reflect the Company’s current assumptions and expectations regarding future events. While these statements reflect the Company’s current judgment, they are subject to risks and uncertainties. Actual results may differ significantly from projected results due to a number of factors, including, but not limited to the soundness of our business strategies relative to the perceived market opportunities; our ability to successfully develop, market, sell, cross-sell, install and upgrade our clinical and financial transaction services and applications to current and new physicians, payers, medical laboratories and pharmacies; our ability to consummate and integrate any acquisitions successfully; our ability to compete effectively on price and support services; our assessment of the healthcare industry’s need, desire and ability to become technology efficient; and our ability and that of our business associates to comply with various government rules regarding healthcare and patient privacy. These and other risk factors are more fully discussed in our filings with the Securities and Exchange Commission, which we strongly urge you to read. ProxyMed expressly disclaims any intent or obligation to update any forward-looking statements. When used, the words “believes,” “estimated,” “expects,” “anticipates,” “may” and similar expressions are intended to identify forward-looking statements.

Item 7. Financial Statements and Exhibits.

(c) The following exhibits are included herein:

Exhibit 99.1	—	Transcript of fourth quarter and year end 2001 financial results teleconference call held on February 14, 2002.
Exhibit 99.2	—	Press Release dated February 13, 2002 reporting financial results for the three months and year ended December 31, 2001.

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SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		ProxyMed, Inc.
Date:	February 20, 2002	/s/	Judson E. Schmid
		Judson E. Schmid, Executive Vice President and Chief Financial Officer

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INDEX TO EXHIBITS

EXHIBIT NUMBER	DESCRIPTION
99.1	Transcript of fourth quarter and year end 2001 financial results teleconference call held on February 14, 2002.
99.2	Press Release dated February 13, 2002 reporting financial results for the three month and year ended December 31, 2001.

4 EX-99.1 3 g74342ex99-1.txt TRANSCRIPT OF FOURTH QUARTER AND YEAR END 2001 EXHIBIT 99.1 PROXYMED, INC. FOURTH QUARTER AND YEAR END 2001 FINANCIAL RESULTS CONFERENCE CALL MODERATOR: MICHAEL HOOVER FEBRUARY 14, 2002 10:00 A.M. ET Operator: Ladies and gentlemen, thank you for standing by. Welcome to the ProxyMed fourth quarter and year end 2001 conference call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. At that time if you have a question, please press the one, followed by the four on your telephone. As a reminder, this conference is being recorded Thursday, February 14th, 2002. I would now like to turn the conference over to Judd Schmid, Chief Financial Officer. Please go ahead, sir. Judson Schmid: Thank you, Stephanie. Good morning, everyone. Thank you for joining us for ProxyMed's conference call to discuss the company's results for the fourth quarter and year end of 2001. I'm Judson Schmid, ProxyMed's Chief Financial Officer. Before we begin our discussion, let me take a minute to reference the Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995. "This conference call may contain forward-looking statements that are subject to risks and uncertainties, including but not limited to, assumptions, beliefs and opinions related to ProxyMed's growth strategy based upon ProxyMed's interpretation and analysis of health care industry trends and management's ability to successfully develop, market, sell, cross-sell, and implement its clinical and financial transaction services and software applications to physicians, pharmacies, laboratories and payers as well as the successful integration of its acquisitions. Other risk factors are detailed in the company's filings with the Securities and Exchange Commission. ProxyMed expressly disclaims any intent or obligation to update any forward looking statements." Leading today's conference call is Mike Hoover, ProxyMed's Chairman and Chief Executive Officer, and providing an operational summary will by Nancy Ham , our President and Chief Operating Officer. I'd like to now turn the call over to Mike. Go ahead, please, Mike. Michael Hoover: Thank you, Judd. Good morning, everyone, and welcome to ProxyMed's year end 2001, results conference call. Today we will discuss and review our fourth quarter and year end results for 2001, and then we'll review our strategies for 2002. In our discussion today, we will be focusing on the successful completion of our turn around of the company and how ProxyMed's focus on the small physician practice differentiates us and drives our 2002 strategy. As is customary, at the end of our remarks, we will open up the lines for any questions that you may have. Let me begin by saying I will never get tired of repeating that once again we have good news to report. That ProxyMed has reported record revenue and EBITDA profits for the quarter and for the year. 2001 was certainly a busy year here for ProxyMed. In 12 short months we were able to get our growth on track, increasing revenue by almost 30 percent over 2000, and transaction volume by over 70 percent. We enter 2002 with a transaction run rate over 106 million transactions annually. On the margin side, we reduced SG&A expenses by 10 percent on a monthly run rate, while driving our EBITDA margins from years of losses to three consecutive quarters of record profits. As a result, we are pleased to report that we exceeded our original revenue guidance of $42.5 million and we have met comfortably our updated guidance for EBITDA, as adjusted. As if that weren't enough, we also completed our capital structure cleanup, raised $8 million in new capital, grew our institutional ownership significantly and restructured our board to a more efficient seven members. Beginning the year on track to deliver our first full quarter of EPS, which will be the second quarter of 2002. I wanted to thank the management team and all of our terrific associates for a job well done. Now to get to the details, let's turn it back over to Judd who will take us through the financial results for the quarter and for the year. Judd. Judson Schmid: Thank you, Mike, and good morning, everyone. As Mike said, we'll never get tired of saying that we have good news to report once again here at ProxyMed. 2001 was certainly a terrific year for us with record revenues and profits. To begin our discussion, we are reporting quarterly revenues of $12.8 million, up 8 percent over the third quarter and up 47 percent over the fourth quarter of 2000. In addition, we are reporting a record EBITDA profit of $930,000, an improvement of 23 percent over last quarter and our eighth consecutive quarter of EBITDA improvement. For the 2001 year, revenues were $43.2 million, a 29 percent increase over the 2000 year, and in excess of our guidance of $42.5 million. More importantly, we delivered EBITDA as adjusted of $2.46 million for the year, comfortably within our guidance range of $2.4 to $2.55 million. This record EBITDA is comprised of reported EBITDA of $1.6 million and approximately $900,000 in added back items, consisting of certain separation pay, software licensing contingency charges, and non-cash compensatory option expense incurred primarily in the early part of the year. Let's focus now on the quarter in more detail. The fourth quarter has traditionally been a slightly weaker revenue quarter for ProxyMed compared to our third quarter, but for this year we bucked that trend. As just noted, ProxyMed recorded revenues of $12.8 million for the fourth quarter, an increase of 47 percent over last year's fourth quarter revenues of $8.7 million, and in increase of 8 percent over our normally stronger third quarter. This performance was fueled by an 80 percent revenue increase in Healthcare Transaction Services, which rose from $3 million last year, to $5.4 million this year. In addition, we saw a 30 percent revenue increase in our Laboratory Communication Solutions segment, from $5.7 million last year to $7.4 million this year. In terms of transaction growth during the quarter, we processed 26.5 million clinical and financial transactions through ProxyNet, our secure national health care information network, representing a 72 percent increase over the fourth quarter of 2000. For the full year, we processed 88 million transactions, an increase of 48 percent over last year. And as Mike said, we end the year with an annualized run rate of 106 million transactions. Consistently improving our EBITDA margins is the main focus of ProxyMed, especially as we move forward. To accomplish this goal, we are pursuing three main tactics. First, we are seeking to improve our revenue mix by eliminating certain non-core and low margin activities. This may have a modestly negative effect on the first quarter of 2002 revenue, but over the course of 2002, it will allow us to drive higher quality core growth. Secondly, as we deliver this higher quality core growth, our incremental margins on new transactions are quite high. We are able to efficiently leverage investments that we have made in our technology and infrastructure to support our rapidly increasing transaction growth. And in all areas of the company we continuously strive for operational efficiencies as a way to improve our EBITDA margins. For example, with our recent payoff of our obligation to the former owner of MDP, we can now execute on additional integration efficiencies, thereby improving the margin on that book of business. 2 On the SG&A side, although we are very vigilant about keeping our expenses in check, we continue to make selective investments, such as growing our very successful Payer Services sales team to drive our revenue growth. Consolidated SG&A expenses were $5.3 million for the quarter, down from $6.2 million in the fourth quarter of last year. On an annual basis, SG&A expenses as a percentage of revenues, dropped from 81 percent to 49 percent as our business both matured and achieved economies of scale and operational synergies. As a result of these initiatives, reported EBITDA profits for the fourth quarter increased to $930,000, compared to a reported EBITDA loss of $624,000 for the fourth quarter of 2000. The improvement in EBITDA also represents an increase of 23 percent over last quarter's EBITDA performance which was a record of $754,000. Looking below the EBITDA line, as we have noted before, starting January 1st, 2002, we adopted the new FASB 142 rules regarding goodwill amortization. As a result, our depreciation and amortization will be reduced by roughly $800,000 per quarter to around $600,000. In addition to non-cash D&A charges, we had non-cash dividend charges of $4 million for the quarter. This resulted primarily from the charge associated with our Series C Conversion Offer, which officially ended on Monday. As you know in December, we commenced an offer to convert the outstanding 1.4 million shares of our Series C preferred stock into common stock as the final phase of cleaning up our capital structure. I'm very happy to report that we had almost 99 percent of those outstanding shares converted under the terms of the deal. The few remaining unconverted shares are basically reduced to the same rights as common shareholders: anti-dilution provisions have been waived and the Board will not declare any more dividends. And in 2001, the dividends totaled $1.6 million. While the conversion was a great success, the timing of all the conversions did have one negative result. Because we had only 83 percent converted through December 31st, we will have to take a $600,000 non-cash deemed dividend charge in the first quarter of 2002 for those shareholders that converted after year end. Given that we had very nominal interest charges and we'll not be a tax payer for many years due to our accumulated net operating losses of over $60 million, we expect to obtain positive EPS on a monthly basis in early 2002. While it is probable that the non-cash deemed dividend charge will prevent us from achieving positive EPS for the first full quarter of 2002, we are comfortable that we will deliver positive EPS for the second quarter. With the conversion behind us, the year long cleanup of our capital structure is complete and we start 2002 with the following capital structure as of today: - 5.1 million common shares outstanding; - 20,000 common shares underlying the remaining Series C preferred stock; - 842,400 stock options; and - 189,000 warrants. All totaling 6.2 million fully diluted shares. Remember that during the year, we had undertaken two successful warrant exchanges, a 1-for-15 reverse stock split, and a private placement of common stock in which we raised almost $8 million from nine U.S. and Canadian institutional investors. The bottom line is that we have an attractive capital structure starting out this new year. As of today, our S-3 that we filed for the registration of the shares sold in the December private placement, the premium shares paid in the Series C Conversion Offer and the shares issued as a result of our Series C warrant exchange completed last summer is now effective. On this point, we received several inquiries about the potential for increased selling pressure on the stock due 3 to the increased number of shares now fully registered and free from lockup tomorrow, February 15th. While we do not control the individual decisions of our shareholders, we do believe that most of our investors are in the stock with a long-term horizon as they realize ProxyMed's potential for future success. Additionally, one important item to note, is that since June 2001, any preferred holder was free to convert to common and sell without any restrictions or lockup, yet we haven't seen any significant selling of these shares. Again, leading us to believe that these investors are comfortable with the future of the company. Additionally, based upon the latest information available, insider and affiliate ownership is approximately 23 percent, and there are approximately 4 million shares of public float, although we continue to be thinly traded. Institutional ownership has grown nicely to over 19 percent from almost 5 percent a year ago, and we believe that this number is actually higher. Finally, to wrap up the financial discussion, at December 31st our cash position was over $12.6 million. Subsequent to year end, we did payoff our $7 million obligation to the former owner of MDP. Overall for 2001, we generated approximately $850,000 in operating cash flows. In 2001, we also spent $1.4 million on capital expenditures, primarily related to network and security upgrades and software to support new products and services. From a financial standpoint, we accomplished all of our goals that we established at the beginning of the year: achieved positive cash flow, achieved positive EBITDA, accelerate core growth, cleanup the capital structure, and deliver within our guidance. We end the year in the strongest financial position the company has ever been in. Having been with ProxyMed for almost six years now, I can clearly say that this was the most exciting year thus far. Thank you very much, and I'll now turn it over to Nancy for her operational review. Nancy Ham: Thank you, Judd. As we've just been discussing, we continue to make great progress in the fourth quarter with our operational plan. Let me start by discussing our Healthcare Transactions Segment, which includes our Payer Services and Prescription Services divisions. In this segment, we concentrated in the past quarter primarily on core growth, especially with our program for smaller physicians called FOCUS, and through our cross selling initiatives. As a result, we increased the breadth and depth of our network once again in the quarter. On the front-end, or physician side of the network, we've formalized our proven methodologies for targeting, acquiring, retaining and maximizing small physician practices into a program we call FOCUS. We believe that we're unique in our industry for both our targeting of small physician practices which are those with one-to-nine doctors, and our ability to convert these small practices to successful electronic transaction submitters. A few key statistics: We have today over 60,000 direct physician clients. With over 90 percent of our submitting sites fitting that small physician profile of one-to-nine doctors. And once we sign a small physician practice, we have 85 percent of them in active production within 30 days. With their satisfaction rating of the sales and implementation process being a very positive 94 out of 100. And, finally, and perhaps most importantly, once we have these small practices, we keep them, with our annual attrition rate being less than 5 percent. Using this proven FOCUS methodology, our sales team had another great quarter, being over quota on both the number of new physicians and the number of services sold. The sales team added almost 1,500 new physicians to our network in the quarter. In addition, we added 17 new strategic partners, who we call Electronic Commerce Partners, representing another 3,000 indirect physicians in multiple markets. This brings out total of active Electronic Commerce Partners to 131. And on the back-end of the network, we signed six new payers, bringing our total of direct payer connections to 343. 4 In addition to this internal growth, we also effectively grew the breadth of our network through strategic opportunities. In late Q3 and early Q4, we had a very successful implementation of our EDS partnership, which enabled us to offer our financial transaction services to clients at the EDS operated Maryland Health Information Network. In just 60 pretty hectic days we added almost 500 offices with over 1,500 physicians. Truly a great job by the whole team. As a result of these activities, we ended the year with direct relationships with almost 60,000 physicians and indirect relationships with another 40,000. While adding additional physicians certainly remains a core part of our growth strategy, we are perhaps even more focused on accelerating our cross-selling initiatives. Today we have ten separate financial administrative and clinical value added services for a physician office. But the majority of our customers today are using only one or two of these services. Obviously, this represents tremendous untapped potential with our existing physician base. We could more than triple our revenue, driving very nice incremental margins along the way, if we could just move our customer base from doing on average a little over one service with us to doing even just three. As a sign that we are getting more effective at improving these services, in the fourth quarter we had our best quarter ever here with new physicians signing up on average for 2.4 services. Shifting now to Prescription Services. Although 2001 was a challenging year, we remain enthusiastic about the longer term prospects of electronic prescribing. And in fact, the fourth quarter was our best quarter in well over a year in terms of increasing the depth of our network. With our new relationship with eRx Network, we can reach an additional 9,000 pharmacies, which now for the first time ever can participate in electronic prescribing. The first eRx customer, Publix, went into production in the fourth quarter and looking ahead in 2002 we expect to see a steady stream of eRx pharmacies turning on their new electronic prescribing capabilities. With this new partnership, our network can now reach pharmacies to fill one in three prescriptions in the United States. And we ended 2001 with active physician customers in 27 states, up from 15 at the end of the second quarter. Turning now to our Lab Communication Solutions business, we had a very good quarter. Revenues grew by 3 percent over the third quarter. While this sounds like modest growth, as Judd mentioned earlier, we normally experience actually a small fall off in revenue from Q3 to Q4 as labs begin their traditional year-end freeze on many expenditures. We were quite pleased with these results. And when compared to the same period a year ago, revenue was up a strong 30 percent demonstrating the progress that we've made with new products and stronger customer relationships. We do continue to see strength and opportunity in our core products and contract manufacturing business. We're getting better cross-selling here too, selling new recurring revenue services such as our Fleetwatch monitoring service to our device customers. In addition, the HIPAA privacy rules will create a significant opportunity to sell one-time upgrades to the over 150,000 intelligent devices manufactured by ProxyMed and in service at our lab customers today. We also believe that HIPAA will help to drive more rapid adoption of Internet technologies. And to take advantage of this opportunity, in the fourth quarter we brought to market a new product, ProxyLab which offers a flexible thick or thin implementation for both order entry and results reporting. We've already announced our first major distribution partnership for ProxyLab with ARUP Laboratories, a leading specialty testing company, with over 1,000 hospital lab clients. All in all, we had a terrific quarter here at ProxyMed, both financially and operationally. And with that, I'll turn it back over to Mike. Michael Hoover: Thank you, Nancy. Once again, I must reiterate that in 2001, we truly turned the corner. As a result of the dedication and focus of our management team and associates, we have made this company a leading force in the healthcare connectivity marketplace. We met our revenue and EBITDA goals and we are poised to continue that success in the years to come. By focusing on 5 the small physician practice, a niche that virtually no one else is going after, our business plan for 2002 and beyond can be realized. As Nancy discussed, over 250,000 physicians are in this small group practice setting that fall within our target demographic of one-to-nine physicians. This is an under-served market, and yet is precisely the market our payer and clinical partners are most interested in reaching. We believe that by focusing on the following growth drivers, we will continue to gain penetration into this most important segment. We will continue to grow our direct provider base through our proven physician FOCUS program. We plan to cross-sell our financial and clinical services to our existing physicians and partners and we believe that if we could modestly increase the number of services used by our 60,000 direct physicians, we could double or even triple our current transaction revenues. We will leverage our unique clinical and financial transaction sets to deepen our partnership with payers and to execute one to two significant strategic partnerships each year. Payers represent an excellent partner for gaining penetration to the physicians. By offering private-label solutions that offer multiple services, ProxyMed can sell a one-stop solution to the physician. And we will continue to pursue strategic and accretive acquisitions. We have identified several potential candidates that will complement our current product and service offerings. I am confident that with the approach just described, ProxyMed can meet our published goals of 25 to 35 percent revenue growth and 80 to 100 percent EBITDA growth, which for 2002 translates into revenue of $50 to $55 million and EBITDA of $6 to $7 million. We are clearly positioned to deliver the company's first ever positive EPS year. Beginning in February and with Q2 being the first full quarter of positive EPS. Let me conclude by quoting our new mission statement here at ProxyMed. "ProxyMed solves the business problems of physician offices everyday by automating their financial, administrative and clinical transactions with their healthcare institution partners. We exceed customer expectations through our expertise, our proven methodologies and our dedication to service excellence." Today we here at ProxyMed firmly believe that we are the premier physician connectivity in our industry. We deliver a full suite of transactions to physicians' offices that no one else offers. And we provide our customers with unsurpassed customer service. With these attributes behind us, we are committed to becoming one of the only truly profitable companies in the industry. That concludes our formal presentation and we would now like to open it up for any questions that you may have. [Questions from participants and answers from management omitted] Michael Hoover: I want to thank you for everyone's time today. I do have one final point of interest, that we are setting our annual shareholders' meeting for May 22nd, 2002, here in Fort Lauderdale and we'd like to invite everyone. 6 EX-99.2 4 g74342ex99-2.txt PRESS RELEASE DATED 2-13-2002 EXHIBIT 99.2 COMPANY NEWS RELEASE FOR IMMEDIATE RELEASE IMPORTANT NOTE: ProxyMed's fourth quarter 2001 results live teleconference call is accessible by calling 1-800-530-8983 beginning at 10:00 a.m. Eastern Standard Time on Thursday, February 14, 2002 and will be simultaneously broadcast on the Internet at www.proxymed.com. Replays of the teleconference call will be available at www.proxymed.com after 1:00 p.m. EST on February 14th. CONTACT: JUDSON E. SCHMID CHIEF FINANCIAL OFFICER (954) 473-1001, EXT. 353 INVESTORRELATIONS@PROXYMED.COM PROXYMED ANNOUNCES FINANCIAL RESULTS FOR FOURTH QUARTER AND YEAR END 2001 - RECORD ANNUAL REVENUE OF $43.2 MILLION AND EBITDA, AS ADJUSTED, OF $2.46 MILLION - FT. LAUDERDALE, FL (Business Wire) February 13, 2002 - ProxyMed, Inc. (Nasdaq: PILL), a leading provider of healthcare transaction processing services, today reported operating results for its fourth quarter and year ended December 31, 2001. ProxyMed reported record revenues for the fourth quarter of 2001 of $12.8 million, an increase of 47%, compared to revenues of $8.7 million for the same period of 2000. For the year ended December 31, 2001, revenues were $43.2 million, an increase of 29%, over revenues of $33.4 million for the prior year. For the quarter, the Company's profit before interest, taxes, depreciation and amortization, excluding impairment and restructuring charges, (EBITDA) was $0.9 million, compared to an EBITDA loss of ($0.6 million) for the fourth quarter of 2000. For the year ended December 31, 2001, the Company reported an EBITDA profit of $1.6 million compared to an EBITDA loss of ($5.9 million) for the prior year. Additionally, for the 2001 year, the Company is reporting $2.46 million in EBITDA profit, as adjusted, after adding back to reported EBITDA approximately $0.9 million in certain separation pay, software licensing charges, and non-cash compensatory option expenses incurred primarily in the early part of the year. For the fourth quarter of 2001, net loss applicable to common shareholders and net loss per share from continuing operations were $4.7 million and $1.44, compared to a net loss of $12.4 million and net loss per share of $9.05 for the fourth quarter of 2000. Weighted average shares outstanding for the quarters ended December 31, 2001 and 2000 were 3,286,149 and 1,371,635 respectively. For the year ended December 31, 2001, net loss applicable to common shareholders and net loss per share from continuing operations were $19.1 million and $8.81, respectively, compared to a net loss of $48.1 million and net loss per share of $36.84 for the year ended December 31, 2000. Weighted average shares outstanding for the year ended December 31, 2001 and 2000 were 2,162,352 and 1,304,342, respectively. "We are extremely pleased with our record revenues and EBITDA for the year as evidence of a true turnaround. With these accomplishments and the completion of our multi-stage capital structure clean-up, we start 2002 in our best financial position ever. We can now focus on accelerating our core growth and on delivering quality earnings to our shareholders through expanding EBITDA margins," said Judson E. Schmid, ProxyMed's chief financial officer. Fourth quarter operating highlights include: CORPORATE - CAPITAL STRUCTURE IMPROVEMENTS - Converted almost 99% of the outstanding Series C Preferred Stock into common shares (83% was converted through December 31, 2001) pursuant to a Conversion Offer. A non-cash, deemed dividend charge of $3.4 million for the 83% of shares converted in 2001 is reflected in the loss applicable to common shareholders. - Raised $8 million through the private placement of 483,414 shares of common stock to nine U.S. and Canadian institutional and accredited investors. - Created a simplified capital structure after completion of Conversion Offer (as of February 11, 2002):

Number of Common Shares --------- Common shares outstanding 5,141,200 Preferred stock 20,000 Stock options 842,400 Warrants 189,000 --------- Total 6,192,600 =========

ELECTRONIC HEALTHCARE TRANSACTION PROCESSING - Processed a record setting 26.5 million financial and clinical transactions through ProxyNet(R), ProxyMed's secure, proprietary, national healthcare information network, representing an increase of 72% over the same quarter last year. For all of 2001, ProxyMed processed 88.0 million transactions, representing a 48% increase over 2000. - Signed over 500 physician offices in less than 60 days in connection with our EDS partnership. - Added 6 new payers and 17 strategic partners. - Expanded ProxyNet's pharmacy connectivity through an alliance with eRx Network. ProxyNet now has the ability to reach pharmacies that dispense one-third of all prescriptions being filled annually in this country. LABORATORY COMMUNICATION SOLUTIONS - Grew sales of laboratory results reporting devices 32% over the same quarter last year. - Began marketing a next generation clinical lab product, ProxyLab, which enables physician offices to send lab orders and receive lab results through a flexible thick or thin architecture . - Introduced a new service offering, FleetWatch, for our lab customers. Michael K. Hoover, ProxyMed's chairman and chief executive officer said, "I want to thank our dedicated associates and management team for delivering these outstanding results throughout 2001. Looking ahead, I believe that ProxyMed will become the leading provider of physician connectivity through the introduction of new transaction services, our focused efforts on cross-selling our existing physicians, and the completion of key strategic acquisitions." ABOUT PROXYMED - WHERE HEALTHCARE CONNECTS(TM) ProxyMed solves the business problems of physician offices every day by automating their financial, administrative and clinical transactions with healthcare institutions. To facilitate these services, ProxyMed operates ProxyNet(R), its secure, proprietary national electronic information network, which provides physicians and other healthcare providers with direct connectivity to one of the industry's largest list of payers, the largest list of chain and independent pharmacies and the largest list of clinical laboratories. ProxyMed exceeds customer expectations through our expertise, proven methodologies and dedication to service excellence. Note: This press release contains forward-looking statements that reflect our current assumptions and expectations regarding future events. While these statements reflect our current judgment, they are subject to risks and uncertainties. Actual results may differ significantly from projected results due to a number of factors, including, but not limited to the soundness of our business strategies relative to the perceived market opportunities; our ability to successfully develop, market, sell, cross-sell, install and upgrade our clinical and financial transaction services and applications to current and new physicians, payers, medical laboratories and pharmacies; our ability to compete effectively on price and support services; our assessment of the healthcare industry's need, desire and ability to become technology efficient; and our ability and that of our business associates to comply with various government rules regarding healthcare and patient privacy. These and other risk factors are more fully discussed in our filings with the Securities and Exchange Commission, which we strongly urge you to read. We expressly disclaim any intent or obligation to update any forward-looking statements. When used, the words "believes," "estimated," "expects," "anticipates," "may" and similar expressions are intended to identify forward-looking statements. More information on ProxyMed is available on its home page at http://www.proxymed.com. PROXYMED, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended December 31, Year Ended Ended December 31, ------------------------------- ------------------------------- 2001 2000 2001 2000 ------------ ------------ ------------ ------------ Revenues $ 12,773,200 $ 8,665,600 $ 43,230,300 $ 33,441,100 ------------ ------------ ------------ ------------ Costs and expenses: Cost of sales 6,497,300 3,104,600 20,408,000 12,249,000 Selling, general and administrative expenses 5,345,800 6,185,400 21,266,900 27,097,200 Restructuring charge -- (85,000) -- 1,330,000 Write-off of impared assets 91,100 2,850,100 91,100 2,850,100 Operating depreciation and amortization (1) 462,500 842,100 1,766,700 2,991,100 ------------ ------------ ------------ ------------ Total operating costs and expenses (1) 12,396,700 12,897,200 43,532,700 46,517,400 ------------ ------------ ------------ ------------ Operating income (loss), as adjusted (1) 376,500 (4,231,600) (302,400) (13,076,300) Acquisition-related amortization charges (991,900) (2,582,300) (6,409,700) (10,383,800) Litigation settlement and other, net 39,800 (22,000) 39,800 666,600 Interest income (expense), net (105,300) 132,600 (125,600) (4,133,000) ------------ ------------ ------------ ------------ Net loss from continuing operations (680,900) (6,703,300) (6,797,900) (26,926,500) Discontinued operations: Loss from discontinued operations -- -- -- (303,900) Gain on sales of discontinued operations -- 34,200 -- 545,300 ------------ ------------ ------------ ------------ -- 34,200 -- 241,400 ------------ ------------ ------------ ------------ Net loss (680,900) (6,669,100) (6,797,900) (26,685,100) Deemed dividends and other charges 4,042,600 5,738,400 12,262,000 21,366,600 ------------ ------------ ------------ ------------ Net loss applicable to common shareholders $ (4,723,500) $(12,407,500) $(19,059,900) $(48,051,700) ============ ============ ============ ============ Basic and diluted income (loss) per share: From continuing operations $ (1.44) $ (9.07) $ (8.81) $ (37.03) From discontinued operations -- 0.02 -- 0.19 ------------ ------------ ------------ ------------ $ (1.44) $ (9.05) $ (8.81) $ (36.84) ============ ============ ============ ============ Basic and diluted weighted average shares outstanding 3,286,149 1,371,635 2,162,352 1,304,342 ============ ============ ============ ============ EBITDA (2) $ 930,100 $ (624,400) $ 1,555,400 $ (5,905,100) ============ ============ ============ ============

(1) Excludes acquisition-related amortization charges (2) Excludes restructuring and impairment charges PROXYMED, INC. AND SUBSIDIARIES SEGMENT INFORMATION (UNAUDITED)

Three Months Ended December 31, Year Ended December 31, ------------------------------- ------------------------------- 2001 2000 2001 2000 ------------ ------------ ------------ ------------ Revenues: Electronic healthcare transaction processing $ 5,404,800 $ 3,007,700 $ 16,938,400 $ 10,103,400 Laboratory communication solutions 7,368,400 5,658,000 26,291,900 23,337,700 ------------ ------------ ------------ ------------ $ 12,773,200 $ 8,665,700 $ 43,230,300 $ 33,441,100 ============ ============ ============ ============ Operating income (loss):(1) Electronic healthcare transaction processing $ (650,300) $ (6,246,200) $ (6,858,700) $(18,949,800) Laboratory communication solutions 785,600 843,100 3,685,900 3,724,200 Corporate and consolidating (750,700) (1,495,800) (3,539,300) (6,904,500) Restructuring charges -- 85,000 -- (1,330,000) ------------ ------------ ------------ ------------ $ (615,400) $ (6,813,900) $ (6,712,100) $(23,460,100) ============ ============ ============ ============

(1) Includes impairment and acquisition-related amortization charges PROXYMED, INC. AND SUBSIDIARIES BALANCE SHEET HIGHLIGHTS DECEMBER 31, 2001 (UNAUDITED) Cash and cash equivalents $12,601,000 Total assets $35,881,500 Total liabilities $13,009,000 Total stockholders' equity $22,872,500 -----END PRIVACY-ENHANCED MESSAGE-----

EX-99.1

                                                                   EXHIBIT 99.1


                                 PROXYMED, INC.
       FOURTH QUARTER AND YEAR END 2001 FINANCIAL RESULTS CONFERENCE CALL

                           MODERATOR: MICHAEL HOOVER
                               FEBRUARY 14, 2002
                                 10:00 A.M. ET


Operator:         Ladies and gentlemen, thank you for standing by. Welcome to
                  the ProxyMed fourth quarter and year end 2001 conference
                  call. During the presentation, all participants will be in a
                  listen-only mode. Afterwards, we will conduct a question and
                  answer session. At that time if you have a question, please
                  press the one, followed by the four on your telephone. As a
                  reminder, this conference is being recorded Thursday,
                  February 14th, 2002.

                  I would now like to turn the conference over to Judd Schmid,
                  Chief Financial Officer. Please go ahead, sir.

Judson Schmid:    Thank you, Stephanie. Good morning, everyone. Thank you for
                  joining us for ProxyMed's conference call to discuss the
                  company's results for the fourth quarter and year end of
                  2001. I'm Judson Schmid, ProxyMed's Chief Financial Officer.

                  Before we begin our discussion, let me take a minute to
                  reference the Safe Harbor Statement under the Private
                  Securities Litigation Reform Act of 1995. "This conference
                  call may contain forward-looking statements that are subject
                  to risks and uncertainties, including but not limited to,
                  assumptions, beliefs and opinions related to ProxyMed's
                  growth strategy based upon ProxyMed's interpretation and
                  analysis of health care industry trends and management's
                  ability to successfully develop, market, sell, cross-sell,
                  and implement its clinical and financial transaction services
                  and software applications to physicians, pharmacies,
                  laboratories and payers as well as the successful integration
                  of its acquisitions. Other risk factors are detailed in the
                  company's filings with the Securities and Exchange
                  Commission. ProxyMed expressly disclaims any intent or
                  obligation to update any forward looking statements."

                  Leading today's conference call is Mike Hoover, ProxyMed's
                  Chairman and Chief Executive Officer, and providing an
                  operational summary will by Nancy Ham , our President and
                  Chief Operating Officer.

                  I'd like to now turn the call over to Mike. Go ahead, please,
                  Mike.

Michael Hoover:   Thank you, Judd. Good morning, everyone, and welcome to
                  ProxyMed's year end 2001, results conference call. Today we
                  will discuss and review our fourth quarter and year end
                  results for 2001, and then we'll review our strategies for
                  2002. In our discussion today, we will be focusing on the
                  successful completion of our turn around of the company and
                  how ProxyMed's focus on the small physician practice
                  differentiates us and drives our 2002 strategy. As is
                  customary, at the end of our remarks, we will open up the
                  lines for any questions that you may have.

                  Let me begin by saying I will never get tired of repeating
                  that once again we have good news to report. That ProxyMed
                  has reported record revenue and EBITDA profits for the
                  quarter and for the year. 2001 was certainly a busy year here
                  for ProxyMed. In 12 short months we were able to get our
                  growth on track, increasing revenue by almost 30 percent over
                  2000, and transaction volume by over 70 percent. We enter
                  2002 with a transaction run rate over 106 million
                  transactions annually. On the margin side, we reduced SG&A
                  expenses by 10 percent on a monthly run rate, while driving
                  our EBITDA margins from years of losses to three consecutive
                  quarters of record profits. As a result, we are pleased to
                  report that we exceeded our original revenue guidance of
                  $42.5 million and we have met comfortably our updated
                  guidance for EBITDA, as adjusted.





                  As if that weren't enough, we also completed our capital
                  structure cleanup, raised $8 million in new capital, grew our
                  institutional ownership significantly and restructured our
                  board to a more efficient seven members. Beginning the year
                  on track to deliver our first full quarter of EPS, which will
                  be the second quarter of 2002. I wanted to thank the
                  management team and all of our terrific associates for a job
                  well done.

                  Now to get to the details, let's turn it back over to Judd
                  who will take us through the financial results for the
                  quarter and for the year. Judd.

Judson Schmid:    Thank you, Mike, and good morning, everyone. As Mike said,
                  we'll never get tired of saying that we have good news to
                  report once again here at ProxyMed. 2001 was certainly a
                  terrific year for us with record revenues and profits. To
                  begin our discussion, we are reporting quarterly revenues of
                  $12.8 million, up 8 percent over the third quarter and up 47
                  percent over the fourth quarter of 2000. In addition, we are
                  reporting a record EBITDA profit of $930,000, an improvement
                  of 23 percent over last quarter and our eighth consecutive
                  quarter of EBITDA improvement.

                  For the 2001 year, revenues were $43.2 million, a 29 percent
                  increase over the 2000 year, and in excess of our guidance of
                  $42.5 million. More importantly, we delivered EBITDA as
                  adjusted of $2.46 million for the year, comfortably within
                  our guidance range of $2.4 to $2.55 million. This record
                  EBITDA is comprised of reported EBITDA of $1.6 million and
                  approximately $900,000 in added back items, consisting of
                  certain separation pay, software licensing contingency
                  charges, and non-cash compensatory option expense incurred
                  primarily in the early part of the year.

                  Let's focus now on the quarter in more detail. The fourth
                  quarter has traditionally been a slightly weaker revenue
                  quarter for ProxyMed compared to our third quarter, but for
                  this year we bucked that trend. As just noted, ProxyMed
                  recorded revenues of $12.8 million for the fourth quarter, an
                  increase of 47 percent over last year's fourth quarter
                  revenues of $8.7 million, and in increase of 8 percent over
                  our normally stronger third quarter.

                  This performance was fueled by an 80 percent revenue increase
                  in Healthcare Transaction Services, which rose from $3
                  million last year, to $5.4 million this year. In addition, we
                  saw a 30 percent revenue increase in our Laboratory
                  Communication Solutions segment, from $5.7 million last year
                  to $7.4 million this year.

                  In terms of transaction growth during the quarter, we
                  processed 26.5 million clinical and financial transactions
                  through ProxyNet, our secure national health care information
                  network, representing a 72 percent increase over the fourth
                  quarter of 2000. For the full year, we processed 88 million
                  transactions, an increase of 48 percent over last year. And
                  as Mike said, we end the year with an annualized run rate of
                  106 million transactions.

                  Consistently improving our EBITDA margins is the main focus
                  of ProxyMed, especially as we move forward. To accomplish
                  this goal, we are pursuing three main tactics. First, we are
                  seeking to improve our revenue mix by eliminating certain
                  non-core and low margin activities. This may have a modestly
                  negative effect on the first quarter of 2002 revenue, but
                  over the course of 2002, it will allow us to drive higher
                  quality core growth. Secondly, as we deliver this higher
                  quality core growth, our incremental margins on new
                  transactions are quite high. We are able to efficiently
                  leverage investments that we have made in our technology and
                  infrastructure to support our rapidly increasing transaction
                  growth. And in all areas of the company we continuously
                  strive for operational efficiencies as a way to improve our
                  EBITDA margins. For example, with our recent payoff of our
                  obligation to the former owner of MDP, we can now execute on
                  additional integration efficiencies, thereby improving the
                  margin on that book of business.


                                       2



                  On the SG&A side, although we are very vigilant about keeping
                  our expenses in check, we continue to make selective
                  investments, such as growing our very successful Payer
                  Services sales team to drive our revenue growth. Consolidated
                  SG&A expenses were $5.3 million for the quarter, down from
                  $6.2 million in the fourth quarter of last year. On an annual
                  basis, SG&A expenses as a percentage of revenues, dropped
                  from 81 percent to 49 percent as our business both matured
                  and achieved economies of scale and operational synergies.

                  As a result of these initiatives, reported EBITDA profits for
                  the fourth quarter increased to $930,000, compared to a
                  reported EBITDA loss of $624,000 for the fourth quarter of
                  2000. The improvement in EBITDA also represents an increase
                  of 23 percent over last quarter's EBITDA performance which
                  was a record of $754,000.

                  Looking below the EBITDA line, as we have noted before,
                  starting January 1st, 2002, we adopted the new FASB 142 rules
                  regarding goodwill amortization. As a result, our
                  depreciation and amortization will be reduced by roughly
                  $800,000 per quarter to around $600,000. In addition to
                  non-cash D&A charges, we had non-cash dividend charges of $4
                  million for the quarter. This resulted primarily from the
                  charge associated with our Series C Conversion Offer, which
                  officially ended on Monday.

                  As you know in December, we commenced an offer to convert the
                  outstanding 1.4 million shares of our Series C preferred
                  stock into common stock as the final phase of cleaning up our
                  capital structure. I'm very happy to report that we had
                  almost 99 percent of those outstanding shares converted under
                  the terms of the deal. The few remaining unconverted shares
                  are basically reduced to the same rights as common
                  shareholders: anti-dilution provisions have been waived and
                  the Board will not declare any more dividends. And in 2001,
                  the dividends totaled $1.6 million.

                  While the conversion was a great success, the timing of all
                  the conversions did have one negative result. Because we had
                  only 83 percent converted through December 31st, we will have
                  to take a $600,000 non-cash deemed dividend charge in the
                  first quarter of 2002 for those shareholders that converted
                  after year end. Given that we had very nominal interest
                  charges and we'll not be a tax payer for many years due to
                  our accumulated net operating losses of over $60 million, we
                  expect to obtain positive EPS on a monthly basis in early
                  2002. While it is probable that the non-cash deemed dividend
                  charge will prevent us from achieving positive EPS for the
                  first full quarter of 2002, we are comfortable that we will
                  deliver positive EPS for the second quarter.

                  With the conversion behind us, the year long cleanup of our
                  capital structure is complete and we start 2002 with the
                  following capital structure as of today:

                           -        5.1 million common shares outstanding;

                           -        20,000 common shares underlying the
                                    remaining Series C preferred stock;

                           -        842,400 stock options; and

                           -        189,000 warrants.

                  All totaling 6.2 million fully diluted shares. Remember that
                  during the year, we had undertaken two successful warrant
                  exchanges, a 1-for-15 reverse stock split, and a private
                  placement of common stock in which we raised almost $8
                  million from nine U.S. and Canadian institutional investors.
                  The bottom line is that we have an attractive capital
                  structure starting out this new year.

                  As of today, our S-3 that we filed for the registration of
                  the shares sold in the December private placement, the
                  premium shares paid in the Series C Conversion Offer and the
                  shares issued as a result of our Series C warrant exchange
                  completed last summer is now effective. On this point, we
                  received several inquiries about the potential for increased
                  selling pressure on the stock due


                                       3



                  to the increased number of shares now fully registered and
                  free from lockup tomorrow, February 15th. While we do not
                  control the individual decisions of our shareholders, we do
                  believe that most of our investors are in the stock with a
                  long-term horizon as they realize ProxyMed's potential for
                  future success.

                  Additionally, one important item to note, is that since June
                  2001, any preferred holder was free to convert to common and
                  sell without any restrictions or lockup, yet we haven't seen
                  any significant selling of these shares. Again, leading us to
                  believe that these investors are comfortable with the future
                  of the company. Additionally, based upon the latest
                  information available, insider and affiliate ownership is
                  approximately 23 percent, and there are approximately 4
                  million shares of public float, although we continue to be
                  thinly traded. Institutional ownership has grown nicely to
                  over 19 percent from almost 5 percent a year ago, and we
                  believe that this number is actually higher.

                  Finally, to wrap up the financial discussion, at December
                  31st our cash position was over $12.6 million. Subsequent to
                  year end, we did payoff our $7 million obligation to the
                  former owner of MDP. Overall for 2001, we generated
                  approximately $850,000 in operating cash flows. In 2001, we
                  also spent $1.4 million on capital expenditures, primarily
                  related to network and security upgrades and software to
                  support new products and services.

                  From a financial standpoint, we accomplished all of our goals
                  that we established at the beginning of the year: achieved
                  positive cash flow, achieved positive EBITDA, accelerate core
                  growth, cleanup the capital structure, and deliver within our
                  guidance. We end the year in the strongest financial position
                  the company has ever been in. Having been with ProxyMed for
                  almost six years now, I can clearly say that this was the
                  most exciting year thus far.

                  Thank you very much, and I'll now turn it over to Nancy for
                  her operational review.

Nancy Ham:        Thank you, Judd. As we've just been discussing, we continue
                  to make great progress in the fourth quarter with our
                  operational plan. Let me start by discussing our Healthcare
                  Transactions Segment, which includes our Payer Services and
                  Prescription Services divisions.

                  In this segment, we concentrated in the past quarter
                  primarily on core growth, especially with our program for
                  smaller physicians called FOCUS, and through our cross
                  selling initiatives. As a result, we increased the breadth
                  and depth of our network once again in the quarter. On the
                  front-end, or physician side of the network, we've formalized
                  our proven methodologies for targeting, acquiring, retaining
                  and maximizing small physician practices into a program we
                  call FOCUS. We believe that we're unique in our industry for
                  both our targeting of small physician practices which are
                  those with one-to-nine doctors, and our ability to convert
                  these small practices to successful electronic transaction
                  submitters.

                  A few key statistics: We have today over 60,000 direct
                  physician clients. With over 90 percent of our submitting
                  sites fitting that small physician profile of one-to-nine
                  doctors. And once we sign a small physician practice, we have
                  85 percent of them in active production within 30 days. With
                  their satisfaction rating of the sales and implementation
                  process being a very positive 94 out of 100. And, finally,
                  and perhaps most importantly, once we have these small
                  practices, we keep them, with our annual attrition rate being
                  less than 5 percent.

                  Using this proven FOCUS methodology, our sales team had
                  another great quarter, being over quota on both the number of
                  new physicians and the number of services sold. The sales
                  team added almost 1,500 new physicians to our network in the
                  quarter. In addition, we added 17 new strategic partners, who
                  we call Electronic Commerce Partners, representing another
                  3,000 indirect physicians in multiple markets. This brings
                  out total of active Electronic Commerce Partners to 131. And
                  on the back-end of the network, we signed six new payers,
                  bringing our total of direct payer connections to 343.


                                       4



                  In addition to this internal growth, we also effectively grew
                  the breadth of our network through strategic opportunities.
                  In late Q3 and early Q4, we had a very successful
                  implementation of our EDS partnership, which enabled us to
                  offer our financial transaction services to clients at the
                  EDS operated Maryland Health Information Network. In just 60
                  pretty hectic days we added almost 500 offices with over
                  1,500 physicians. Truly a great job by the whole team. As a
                  result of these activities, we ended the year with direct
                  relationships with almost 60,000 physicians and indirect
                  relationships with another 40,000.

                  While adding additional physicians certainly remains a core
                  part of our growth strategy, we are perhaps even more focused
                  on accelerating our cross-selling initiatives. Today we have
                  ten separate financial administrative and clinical value
                  added services for a physician office. But the majority of
                  our customers today are using only one or two of these
                  services. Obviously, this represents tremendous untapped
                  potential with our existing physician base. We could more
                  than triple our revenue, driving very nice incremental
                  margins along the way, if we could just move our customer
                  base from doing on average a little over one service with us
                  to doing even just three. As a sign that we are getting more
                  effective at improving these services, in the fourth quarter
                  we had our best quarter ever here with new physicians signing
                  up on average for 2.4 services.

                  Shifting now to Prescription Services. Although 2001 was a
                  challenging year, we remain enthusiastic about the longer
                  term prospects of electronic prescribing. And in fact, the
                  fourth quarter was our best quarter in well over a year in
                  terms of increasing the depth of our network. With our new
                  relationship with eRx Network, we can reach an additional
                  9,000 pharmacies, which now for the first time ever can
                  participate in electronic prescribing. The first eRx
                  customer, Publix, went into production in the fourth quarter
                  and looking ahead in 2002 we expect to see a steady stream of
                  eRx pharmacies turning on their new electronic prescribing
                  capabilities. With this new partnership, our network can now
                  reach pharmacies to fill one in three prescriptions in the
                  United States. And we ended 2001 with active physician
                  customers in 27 states, up from 15 at the end of the second
                  quarter.

                  Turning now to our Lab Communication Solutions business, we
                  had a very good quarter. Revenues grew by 3 percent over the
                  third quarter. While this sounds like modest growth, as Judd
                  mentioned earlier, we normally experience actually a small
                  fall off in revenue from Q3 to Q4 as labs begin their
                  traditional year-end freeze on many expenditures. We were
                  quite pleased with these results. And when compared to the
                  same period a year ago, revenue was up a strong 30 percent
                  demonstrating the progress that we've made with new products
                  and stronger customer relationships.

                  We do continue to see strength and opportunity in our core
                  products and contract manufacturing business. We're getting
                  better cross-selling here too, selling new recurring revenue
                  services such as our Fleetwatch monitoring service to our
                  device customers. In addition, the HIPAA privacy rules will
                  create a significant opportunity to sell one-time upgrades to
                  the over 150,000 intelligent devices manufactured by ProxyMed
                  and in service at our lab customers today. We also believe
                  that HIPAA will help to drive more rapid adoption of Internet
                  technologies. And to take advantage of this opportunity, in
                  the fourth quarter we brought to market a new product,
                  ProxyLab which offers a flexible thick or thin implementation
                  for both order entry and results reporting. We've already
                  announced our first major distribution partnership for
                  ProxyLab with ARUP Laboratories, a leading specialty testing
                  company, with over 1,000 hospital lab clients.

                  All in all, we had a terrific quarter here at ProxyMed, both
                  financially and operationally. And with that, I'll turn it
                  back over to Mike.

Michael Hoover:   Thank you, Nancy. Once again, I must reiterate that in 2001,
                  we truly turned the corner. As a result of the dedication and
                  focus of our management team and associates, we have made
                  this company a leading force in the healthcare connectivity
                  marketplace. We met our revenue and EBITDA goals and we are
                  poised to continue that success in the years to come. By
                  focusing on


                                       5



                  the small physician practice, a niche that virtually no one
                  else is going after, our business plan for 2002 and beyond
                  can be realized. As Nancy discussed, over 250,000 physicians
                  are in this small group practice setting that fall within our
                  target demographic of one-to-nine physicians. This is an
                  under-served market, and yet is precisely the market our
                  payer and clinical partners are most interested in reaching.

                  We believe that by focusing on the following growth drivers,
                  we will continue to gain penetration into this most important
                  segment. We will continue to grow our direct provider base
                  through our proven physician FOCUS program. We plan to
                  cross-sell our financial and clinical services to our
                  existing physicians and partners and we believe that if we
                  could modestly increase the number of services used by our
                  60,000 direct physicians, we could double or even triple our
                  current transaction revenues. We will leverage our unique
                  clinical and financial transaction sets to deepen our
                  partnership with payers and to execute one to two significant
                  strategic partnerships each year. Payers represent an
                  excellent partner for gaining penetration to the physicians.
                  By offering private-label solutions that offer multiple
                  services, ProxyMed can sell a one-stop solution to the
                  physician. And we will continue to pursue strategic and
                  accretive acquisitions. We have identified several potential
                  candidates that will complement our current product and
                  service offerings.

                  I am confident that with the approach just described,
                  ProxyMed can meet our published goals of 25 to 35 percent
                  revenue growth and 80 to 100 percent EBITDA growth, which for
                  2002 translates into revenue of $50 to $55 million and EBITDA
                  of $6 to $7 million. We are clearly positioned to deliver the
                  company's first ever positive EPS year. Beginning in February
                  and with Q2 being the first full quarter of positive EPS.

                  Let me conclude by quoting our new mission statement here at
                  ProxyMed. "ProxyMed solves the business problems of physician
                  offices everyday by automating their financial,
                  administrative and clinical transactions with their
                  healthcare institution partners. We exceed customer
                  expectations through our expertise, our proven methodologies
                  and our dedication to service excellence." Today we here at
                  ProxyMed firmly believe that we are the premier physician
                  connectivity in our industry. We deliver a full suite of
                  transactions to physicians' offices that no one else offers.
                  And we provide our customers with unsurpassed customer
                  service. With these attributes behind us, we are committed to
                  becoming one of the only truly profitable companies in the
                  industry.

                  That concludes our formal presentation and we would now like
                  to open it up for any questions that you may have.

                  [Questions from participants and answers from management
                  omitted]

Michael Hoover:   I want to thank you for everyone's time today. I do have one
                  final point of interest, that we are setting our annual
                  shareholders' meeting for May 22nd, 2002, here in Fort
                  Lauderdale and we'd like to invite everyone.


                                       6

EX-99.2

                                                                   EXHIBIT 99.2


                              COMPANY NEWS RELEASE


                             FOR IMMEDIATE RELEASE


IMPORTANT NOTE: ProxyMed's fourth quarter 2001 results live teleconference call
is accessible by calling 1-800-530-8983 beginning at 10:00 a.m. Eastern
Standard Time on Thursday, February 14, 2002 and will be simultaneously
broadcast on the Internet at www.proxymed.com. Replays of the teleconference
call will be available at www.proxymed.com after 1:00 p.m. EST on February
14th.


CONTACT:
JUDSON E. SCHMID
CHIEF FINANCIAL OFFICER
(954) 473-1001, EXT. 353
INVESTORRELATIONS@PROXYMED.COM



                      PROXYMED ANNOUNCES FINANCIAL RESULTS
                      FOR FOURTH QUARTER AND YEAR END 2001
             - RECORD ANNUAL REVENUE OF $43.2 MILLION AND EBITDA,
                        AS ADJUSTED, OF $2.46 MILLION -


         FT. LAUDERDALE, FL (Business Wire) February 13, 2002 - ProxyMed, Inc.
(Nasdaq: PILL), a leading provider of healthcare transaction processing
services, today reported operating results for its fourth quarter and year
ended December 31, 2001.

         ProxyMed reported record revenues for the fourth quarter of 2001 of
$12.8 million, an increase of 47%, compared to revenues of $8.7 million for the
same period of 2000. For the year ended December 31, 2001, revenues were $43.2
million, an increase of 29%, over revenues of $33.4 million for the prior year.

         For the quarter, the Company's profit before interest, taxes,
depreciation and amortization, excluding impairment and restructuring charges,
(EBITDA) was $0.9 million, compared to an EBITDA loss of ($0.6 million) for the
fourth quarter of 2000. For the year ended December 31, 2001, the Company
reported an EBITDA profit of $1.6 million compared to an EBITDA loss of ($5.9
million) for the prior year.

         Additionally, for the 2001 year, the Company is reporting $2.46
million in EBITDA profit, as adjusted, after adding back to reported EBITDA
approximately $0.9 million in certain separation pay, software licensing
charges, and non-cash compensatory option expenses incurred primarily in the
early part of the year.





         For the fourth quarter of 2001, net loss applicable to common
shareholders and net loss per share from continuing operations were $4.7
million and $1.44, compared to a net loss of $12.4 million and net loss per
share of $9.05 for the fourth quarter of 2000. Weighted average shares
outstanding for the quarters ended December 31, 2001 and 2000 were 3,286,149
and 1,371,635 respectively.

         For the year ended December 31, 2001, net loss applicable to common
shareholders and net loss per share from continuing operations were $19.1
million and $8.81, respectively, compared to a net loss of $48.1 million and
net loss per share of $36.84 for the year ended December 31, 2000. Weighted
average shares outstanding for the year ended December 31, 2001 and 2000 were
2,162,352 and 1,304,342, respectively.

         "We are extremely pleased with our record revenues and EBITDA for the
year as evidence of a true turnaround. With these accomplishments and the
completion of our multi-stage capital structure clean-up, we start 2002 in our
best financial position ever. We can now focus on accelerating our core growth
and on delivering quality earnings to our shareholders through expanding EBITDA
margins," said Judson E. Schmid, ProxyMed's chief financial officer.

         Fourth quarter operating highlights include:

         CORPORATE  - CAPITAL STRUCTURE IMPROVEMENTS

         -        Converted almost 99% of the outstanding Series C Preferred
                  Stock into common shares (83% was converted through December
                  31, 2001) pursuant to a Conversion Offer. A non-cash, deemed
                  dividend charge of $3.4 million for the 83% of shares
                  converted in 2001 is reflected in the loss applicable to
                  common shareholders.

         -        Raised $8 million through the private placement of 483,414
                  shares of common stock to nine U.S. and Canadian
                  institutional and accredited investors.

         -        Created a simplified capital structure after completion of
                  Conversion Offer (as of February 11, 2002):




                                                                Number of
                                                                  Common
                                                                  Shares
                                                                ---------

                                                             
         Common shares outstanding                               5,141,200
         Preferred stock                                            20,000
         Stock options                                             842,400
         Warrants                                                  189,000
                                                                 ---------
              Total                                              6,192,600
                                                                 =========



         ELECTRONIC HEALTHCARE TRANSACTION PROCESSING

         -        Processed a record setting 26.5 million financial and
                  clinical transactions through ProxyNet(R), ProxyMed's secure,
                  proprietary, national healthcare information network,
                  representing an increase of 72% over the same quarter last
                  year. For all of 2001, ProxyMed processed 88.0 million
                  transactions, representing a 48% increase over 2000.





         -        Signed over 500 physician offices in less than 60 days in
                  connection with our EDS partnership.

         -        Added 6 new payers and 17 strategic partners.

         -        Expanded ProxyNet's pharmacy connectivity through an alliance
                  with eRx Network. ProxyNet now has the ability to reach
                  pharmacies that dispense one-third of all prescriptions being
                  filled annually in this country.

         LABORATORY COMMUNICATION SOLUTIONS

         -        Grew sales of laboratory results reporting devices 32% over
                  the same quarter last year.

         -        Began marketing a next generation clinical lab product,
                  ProxyLab, which enables physician offices to send lab orders
                  and receive lab results through a flexible thick or thin
                  architecture .

         -        Introduced a new service offering, FleetWatch, for our lab
                  customers.

         Michael K. Hoover, ProxyMed's chairman and chief executive officer
said, "I want to thank our dedicated associates and management team for
delivering these outstanding results throughout 2001. Looking ahead, I believe
that ProxyMed will become the leading provider of physician connectivity
through the introduction of new transaction services, our focused efforts on
cross-selling our existing physicians, and the completion of key strategic
acquisitions."

ABOUT PROXYMED - WHERE HEALTHCARE CONNECTS(TM)

ProxyMed solves the business problems of physician offices every day by
automating their financial, administrative and clinical transactions with
healthcare institutions. To facilitate these services, ProxyMed operates
ProxyNet(R), its secure, proprietary national electronic information network,
which provides physicians and other healthcare providers with direct
connectivity to one of the industry's largest list of payers, the largest list
of chain and independent pharmacies and the largest list of clinical
laboratories. ProxyMed exceeds customer expectations through our expertise,
proven methodologies and dedication to service excellence.

Note: This press release contains forward-looking statements that reflect our
current assumptions and expectations regarding future events. While these
statements reflect our current judgment, they are subject to risks and
uncertainties. Actual results may differ significantly from projected results
due to a number of factors, including, but not limited to the soundness of our
business strategies relative to the perceived market opportunities; our ability
to successfully develop, market, sell, cross-sell, install and upgrade our
clinical and financial transaction services and applications to current and new
physicians, payers, medical laboratories and pharmacies; our ability to compete
effectively on price and support services; our assessment of the healthcare
industry's need, desire and ability to become technology efficient; and our
ability and that of our business associates to comply with various government
rules regarding healthcare and patient privacy. These and other risk factors
are more fully discussed in our filings with the Securities and Exchange
Commission, which we strongly urge you to read. We expressly disclaim any
intent or obligation to update any forward-looking statements. When used, the
words "believes," "estimated," "expects," "anticipates," "may" and similar
expressions are intended to identify forward-looking statements.

More information on ProxyMed is available on its home page at
http://www.proxymed.com.





                        PROXYMED, INC. AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)




                                                           Three Months Ended December 31,        Year Ended Ended December 31,
                                                           -------------------------------       -------------------------------
                                                              2001               2000                2001               2000
                                                           ------------       ------------       ------------       ------------

                                                                                                        
Revenues                                                   $ 12,773,200       $  8,665,600       $ 43,230,300       $ 33,441,100
                                                           ------------       ------------       ------------       ------------

Costs and expenses:
     Cost of sales                                            6,497,300          3,104,600         20,408,000         12,249,000
     Selling, general and administrative expenses             5,345,800          6,185,400         21,266,900         27,097,200
     Restructuring charge                                            --            (85,000)                --          1,330,000
     Write-off of impared assets                                 91,100          2,850,100             91,100          2,850,100
     Operating depreciation and amortization (1)                462,500            842,100          1,766,700          2,991,100
                                                           ------------       ------------       ------------       ------------
        Total operating costs and expenses (1)               12,396,700         12,897,200         43,532,700         46,517,400
                                                           ------------       ------------       ------------       ------------

        Operating income (loss), as adjusted (1)                376,500         (4,231,600)          (302,400)       (13,076,300)

Acquisition-related amortization charges                       (991,900)        (2,582,300)        (6,409,700)       (10,383,800)
Litigation settlement and other, net                             39,800            (22,000)            39,800            666,600
Interest income (expense), net                                 (105,300)           132,600           (125,600)        (4,133,000)
                                                           ------------       ------------       ------------       ------------

        Net loss from continuing operations                    (680,900)        (6,703,300)        (6,797,900)       (26,926,500)

Discontinued operations:
     Loss from discontinued operations                               --                 --                 --           (303,900)
     Gain on sales of discontinued operations                        --             34,200                 --            545,300
                                                           ------------       ------------       ------------       ------------
                                                                     --             34,200                 --            241,400
                                                           ------------       ------------       ------------       ------------

        Net loss                                               (680,900)        (6,669,100)        (6,797,900)       (26,685,100)

Deemed dividends and other charges                            4,042,600          5,738,400         12,262,000         21,366,600
                                                           ------------       ------------       ------------       ------------

        Net loss applicable to common shareholders         $ (4,723,500)      $(12,407,500)      $(19,059,900)      $(48,051,700)
                                                           ============       ============       ============       ============

Basic and diluted income (loss) per share:
        From continuing operations                         $      (1.44)      $      (9.07)      $      (8.81)      $     (37.03)
        From discontinued operations                                 --               0.02                 --               0.19
                                                           ------------       ------------       ------------       ------------
                                                           $      (1.44)      $      (9.05)      $      (8.81)      $     (36.84)
                                                           ============       ============       ============       ============

Basic and diluted weighted average shares outstanding         3,286,149          1,371,635          2,162,352          1,304,342
                                                           ============       ============       ============       ============

EBITDA (2)                                                 $    930,100       $   (624,400)      $  1,555,400       $ (5,905,100)
                                                           ============       ============       ============       ============


(1)      Excludes acquisition-related amortization charges

(2)      Excludes restructuring and impairment charges





                        PROXYMED, INC. AND SUBSIDIARIES
                        SEGMENT INFORMATION (UNAUDITED)




                                                       Three Months Ended December 31,            Year Ended December 31,
                                                       -------------------------------       -------------------------------
                                                           2001               2000               2001               2000
                                                       ------------       ------------       ------------       ------------

                                                                                                    
Revenues:
     Electronic healthcare transaction processing      $  5,404,800       $  3,007,700       $ 16,938,400       $ 10,103,400
     Laboratory communication solutions                   7,368,400          5,658,000         26,291,900         23,337,700
                                                       ------------       ------------       ------------       ------------
                                                       $ 12,773,200       $  8,665,700       $ 43,230,300       $ 33,441,100
                                                       ============       ============       ============       ============

Operating income (loss):(1)
     Electronic healthcare transaction processing      $   (650,300)      $ (6,246,200)      $ (6,858,700)      $(18,949,800)
     Laboratory communication solutions                     785,600            843,100          3,685,900          3,724,200
     Corporate and consolidating                           (750,700)        (1,495,800)        (3,539,300)        (6,904,500)
     Restructuring charges                                       --             85,000                 --         (1,330,000)
                                                       ------------       ------------       ------------       ------------
                                                       $   (615,400)      $ (6,813,900)      $ (6,712,100)      $(23,460,100)
                                                       ============       ============       ============       ============


(1)      Includes impairment and acquisition-related amortization charges


                        PROXYMED, INC. AND SUBSIDIARIES
                            BALANCE SHEET HIGHLIGHTS
                         DECEMBER 31, 2001 (UNAUDITED)


                                                
                 Cash and cash equivalents                  $12,601,000
                 Total assets                               $35,881,500
                 Total liabilities                          $13,009,000
                 Total stockholders' equity                 $22,872,500