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):
April 24, 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 9. Regulation FD Disclosure.

     On April 24, 2002, the ProxyMed, Inc. (the “Company”) held a teleconference call to report its financial and operating results for the quarter ended March 31, 2002. A transcript of the call, excluding questions from participants and answers from management, is attached. Additionally, the Company’s press release dated April 24, 2002 reporting financial results for the three months ended March 31, 2002 is also attached.

     FORWARD LOOKING STATEMENTS — This document 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 identify and integrate acquisition candidates; 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 the Risk Factor disclosure in our Form 10-K for the year ended December 31, 2001 and our other 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 first quarter 2002 financial results teleconference call held on April 24, 2002.
Exhibit 99.2	Press Release dated April 24, 2002 reporting financial results for the three months ended March 31, 2002.

2

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: April 30, 2002	/s/ Judson E. Schmid
	Judson E. Schmid, Executive Vice President and Chief Financial Officer

3

INDEX TO EXHIBITS

Exhibit Number	Description
99.1	Transcript of first quarter 2002 financial results teleconference call held on April 24, 2002.
99.2	Press Release dated April 24, 2002 reporting financial results for the three months ended March 31, 2002.

4 EX-99.1 3 g75925ex99-1.txt TRANSCRIPT OF THE FIRST QUARTER 2002 EXHIBIT 99.1 PROXYMED, INC. FIRST QUARTER 2002 FINANCIAL RESULTS CONFERENCE CALL Moderator: Michael Hoover April 24, 2002 2:00 p.m. EDT Operator: Ladies and gentlemen, thank you for standing by. Welcome to the ProxyMed first quarter earnings 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 Wednesday, April 24, 2002. Your speakers for today are Nancy Ham, President and Chief Operating Officer, Judd Schmid Chief Financial Officer, and Michael Hoover, Chief Executive Officer. I would now like to turn the conference over to Judd Schmid. Please go ahead, sir. Judson Schmid: Thank you, Kim. Good afternoon, everyone. Thank you for joining us for ProxyMed's conference call to discuss the company's results for the first quarter of 2002. I'm Judd 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 on ProxyMed's interpretation and analysis of healthcare industry trends and management's ability to successfully develop, market, sell, cross-sell, and implement its clinical and financial transactions services and software to physicians, pharmacies, laboratories and payers, as well as its ability to identify and successfully integrate acquisition candidates. 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 CEO, and providing an operational summary will be Nancy Ham, our President and COO. Now I'd like to turn the call over to Mike. Go ahead please, Mike. Michael Hoover: Thank you, Judd. Good afternoon everyone, and welcome to ProxyMed's first quarter 2002 results conference call. Today we will discuss and review our first quarter results, and then we will review our strategies for the remainder of 2002 and beyond. As you probably know by now, ProxyMed differentiates itself from our competitors by being the only company offering a full suite of financial, clinical and administrative connectivity solutions focused on the 275,000 physicians practicing in a small group setting. We believe that this niche is greatly under-served by our competitors, yet represents the best opportunity for automating the 50 percent of claims that are still delivered on paper. Once we automate this core financial transaction, we then begin to cross-sell our other nine services. This focus and strategy is the lynchpin of all our efforts at ProxyMed, and it's really starting to pay off. Since our last conference call, we've made a lot of exciting progress. We completed the first quarter with strong momentum in all areas, and in the last 90 days, we closed on a $25 million investment from General Atlantic Partners. We saw W.R. Hambrecht initiate coverage of the company with a Strong Buy, and just this morning, we reported our first ever positive net income and earnings per share before dividend charges. This is a tremendous milestone in the history of the company. For the first time, our operating earnings have powered a positive bottom line. As you will hear from Judd in a moment, revenues and EBITDA are up substantially from last year, and exceeded our analyst numbers. We continue to gain momentum in our transaction-based business, and we are more positive than we've ever been about our prospects, both through core growth and through strategic deployment of our new capital. We will take the next few minutes to give you an update, and then we will open the lines for any questions that you may have. Let me turn it back over to Judd, who will take us through the financial results for the quarter. Judd. Judson Schmid: Thanks, Mike. To begin our discussion, let me say that we are pleased to report that we met our consensus revenue guidance of $11.5 million and handily beat our EBITDA expectations of $389,000. To dive into the details, ProxyMed is reporting quarterly revenues of $11.5 million, up a strong 37 percent over the same period a year ago. In addition, we are reporting EBITDA profits of $631,000, which represents our fourth straight quarter of positive EBITDA. Finally, our GAAP net loss per share is $0.11, beating the average street guidance of $0.14 per share. As just noted, our consolidated revenues were $11.5 million in the first quarter, compared to last year's first quarter revenues of $8.4 million. This increase was fueled by a 94 percent revenue increase in Healthcare Transaction Services, which rose for $2.7 million last year to $5.3 million this year. In addition, we saw a 10 percent revenue increase in the more mature Laboratory Communications Solution segment from $5.7 million last year to $6.2 million this year. As predicted, while revenue was down quarter-over-quarter, the mix of our revenue is shifting positively. For the quarter, approximately 46 percent of our revenues came from our transaction processing segment, whereas only 39 percent was from the segment for all of 2001. Our goal for 2002 is to achieve a 50-50 revenue split, as we emphasize growth in our transaction processing business, which offers us recurring revenue and substantially higher operating margins. In terms of transaction growth during the quarter, we processed 26.4 million clinical and financial transactions through ProxyNet, our secure national health care information network, representing a terrific 65 percent increase over the first quarter of 2001. Excluding encounters processed due to the variability associated with this type of transaction, our core transactions processed increased by five percent over the fourth quarter of 2001, and by 96 percent over the first quarter of 2001. We are on an annualized run rate of 106 million transactions for 2002, clearly making us the second largest medical claims transaction services company in the country. As Mike will discuss later, there are tremendous growth opportunities, both internally and externally, that will fuel the success of our transaction based businesses. Turning to expenses, on the SG&A side, starting in the first quarter, we began the hiring of associates in our transaction business sales and marketing teams to drive our core revenue growth. Although this increases our expenses in the quarter, it builds the transaction foundation for success later in the year. We've also added personnel in our technical and development areas as it relates to our HIPAA compliance efforts, representing incremental expenses over prior periods. Consolidated SG&A expenses were $5.5 million for the quarter, down from $5.6 million in the first quarter of last year, and up only 2.8 percent from the fourth quarter. 2 Focusing now on EBITDA, EBITDA dollars increased by a very strong $1.2 million from a loss of $549,000 in the first quarter of 2001 to a positive $631,000. As we've said in the past, in all areas of the company, we continuously strive for operational efficiencies as a way to improve our EBITDA margins on a trendline basis. Given that a relatively large portion of our cost structure is fixed or semi-fixed, it can be a challenge to make this trendline perfectly smooth one quarter to the next, but we are confident in achieving expanding EBITDA margins on an annual basis. For all of 2001, EBITDA margins were 3.6 percent, and we are very comfortable with the analyst guidance that we will achieve at least a consolidated EBITDA margin of 8.6 percent for 2002. As we noted in our year end call, starting January 1st, we adopted the new accounting rules regarding goodwill amortization. As a result, our depreciation and amortization has been reduced by roughly $800,000 per quarter from our year-end 2001 run rates. Additionally, while our offer to convert any outstanding Series C preferred stock was a complete success, with almost 99 percent converting, we did have to record $612,000 for a non-cash deemed dividend charge for those shareholders that waited until January 2002 to convert. The change in revenue mix, along with changes in goodwill amortization, allowed us to achieve our first ever positive net income and EPS of just under a penny per share -- a true milestone. Of course, this excludes the non-cash accounting charge recorded for the conversions, but we remain extremely confident that we will show reported positive EPS next quarter. For the three months of 2002, we spent $412,000 in capital expenditures and $138,000 in capitalized software projects related to HIPAA and the deployment of a private label platform for our web services. Our total capitalized software development is expected to be between 10 percent and 15 percent of our research and development costs for all of 2002. Our cap structure is finally simple: 6.7 million shares outstanding; 20,000 underlying common share for our preferred stock; 733,000 warrants; and 777,000 stock options-- all totaling 8.2 million fully-diluted shares. The shares outstanding and the warrants include the 1.6 million shares and the 549,000 warrants issued to General Atlantic Partners. The General Atlantic Warrant was priced at market, cannot be exercised for a year, and when exercised will bring in another $8.8 million in cash. With $29 million of cash currently in the bank and no debt on our balance sheet since paying off our $7 million note in January, we are clearly in the best financial position ever, and poised to continue to drive shareholder value. Thank you very much. And I'll now turn it over to Nancy for her operational review. Nancy Ham: Thanks, Judd. We ended 2001 accomplishing most of the operational goals we established for ourselves at the beginning of last year. We entered 2002 well positioned as the nation's second largest medical claims transaction company, and the largest provider of both pharmacy and lab to physician connectivity solutions. Our operational challenges this year are to execute our cross-selling initiatives and to monetize the opportunity presented by HIPAA, while maintaining, of course, our industry leading customer service. So, let me start by discussing the successes in our Healthcare Transactions segment, which includes our payer services and prescription services divisions. Using our unique FOCUS methodology, which is our proven approach to acquiring and maximizing small physician practices of one to nine doctors, our sales team had a great 3 quarter, being once again over quota on both the number of new physicians and the number of services sold. In the first quarter, we added almost 1,500 new physicians to our network. But I'm even more pleased to report that the new physicians signed up for over 4,000 services, or 2.8 services per physician. This continues our accelerating trend in which new physicians signed up for 2.1 services for all of 2001, and 2.5 services per physician for the fourth quarter, clearly showing that our cross-selling plans are on track. In addition to this direct customer expansion, we added 10 new electronic commerce partners, representing almost 2,000 indirect physicians in multiple markets, and bringing our total of active partners to 141. As a result of these activities, we ended the quarter with direct relationships with almost 62,000 physicians, and indirect relationships with another 42,000. These positive results for the first quarter exemplify ProxyMed's ability to execute our FOCUS methodology by working closely with our direct payers to convert their physicians from submitting paper claims to submitting electronic transactions. The success of our FOCUS program differentiates us from our competitors and drives substantial value for our payer partners. Using this competitive edge, we were able in the first quarter to sign four more payers, bringing our total of direct payer relationships to 347. And we also signed up several of our existing payers to join the Focus program. This strong linkage from our 62,000 direct physicians to our 347 direct payers is the core of our strategy here at ProxyMed. Over 70 percent of our inbound volume comes from our direct physicians, and over 92 percent of our outbound volume goes to one of our direct payers. This clearly differentiates us from clearinghouses, which typically aggregate inbound and outbound volume to and from others while having few direct relationships themselves. In contrast, at ProxyMed, our direct relationships afford us stickier connections with lower attrition, slightly less than five percent, and this forms the foundation of the cross-sell opportunity. Because of these close physician and payer relationships, ProxyMed's HIPAA opportunity is different and more compelling than that of a clearinghouse. HIPAA will give ProxyMed wide access to transaction types that are offered today by really just a few payers. This new influx of available transactions will only accelerate our cross-selling efforts to our expansive physician client base. In addition, smaller physician offices, where we focus, will need new products and services to make their practices HIPAA compliant, and we're one of the few solution providers ready to meet those needs. We're making the appropriate investments now to be positioned to monetize this terrific revenue opportunity later this year and on into 2003. In addition to these HIPAA investments, we're strengthening our value-added network infrastructure to support this strong core growth. For example, payer services rolled out an expanded "Digital Dashboard" transaction management system in the quarter, which we call VISION. This customer intelligence system monitors our clients' daily transactions, volumes and trends and immediately flags for proactive response any significant changes or opportunities, including volume trends compared to historical results in client-specific projections, increased rejection rates, opportunities such as transaction mining, and cross-selling, and more. Our VISION system helps us to provide better service to our clients while maximizing the number of transaction they process each month. Shifting now to prescription services, we're laying the groundwork here for the profitable expansion for this line of business. We're currently executing on a direct to physician marketing campaign to expand the number of paying physician subscribers in 11 target MSAs where we have both a critical mass of online pharmacies and existing and referenceable physician user base. In this expansion, we're leading with a new web-based version of our popular PreScribe product, which was launched during the quarter. Although early in the campaign, I'm very encouraged by the initial results, and 75 percent of the implementations have been for the new web-based service. This is 4 obviously important because of the dramatic reduction in cost to remotely implement a web-based customer versus having to go on-site and install a Windows-based application. And I'm particularly pleased that out of all of our physician users, over two-thirds are paying a monthly subscription fee today, up from just a third a year ago, clearly demonstrating the value that physician offices receive in automating prescription refills and getting off the phone. Turning now to Lab Communication Solutions, we're pleased to report that revenues grew by 10 percent over Q1 of last year. However, revenues were below our record-setting peaks in Q3 and Q4. We executed on our plan to eliminate certain non-strategic and lower margin services. In addition to this expected impact, we did experience some delays in orders from a larger lab and printer partner, but soon we're finalizing negotiations for a new and expanded nationwide product and services contract. We were also somewhat affected by industry merger and acquisition activities, for example, the announcements by Quest Diagnostics of their purchases of AML and UniLab -- all three of whom were longstanding ProxyMed customers -- and this M&A activity has caused some of their collective purchases to be shifted until later in the year. Our experience over 25 years in this business has been that while orders can and do shift from quarter-to-quarter, they are usually delayed and not lost. So, while our quarters are not always perfectly smooth, year-over-year we're showing consistent growth of 10 percent. And as for the company overall, if we increase the percentage of our revenue coming from our higher margin and recurring revenue healthier transaction segment, we're creating a smoother overall revenue curve quarter-over-quarter. On the EBITDA side, while we were successful in eliminating certain low margin products, as I just mentioned, we did see a decline in EBITDA. One of our largest lease customers took advantage of low interest rates to buy out their lease base, which reduced EBITDA by almost $200,000. In addition, like many employers, we experienced significant health and business insurance premium increases in the first quarter. We absolutely remain committed to improving our EBITDA margins, and we took proactive steps to reduce our expenses by a pro forma $100,000 a quarter going forward. Looking ahead, we see strength and opportunity in core products in our contract manufacturing business. On the core products side, we're making progress in penetrating a new target market, anatomical pathology labs, who traditionally do not use remote intelligent devices to deliver lab results. With the price points for color printing becoming more economical, we're targeting this segment of the lab market for growth, and we're pleased that we sold our first units within the quarter. In addition, we began cross-selling new recurring revenue services, such as our FleetWatch monitoring service to our device customers. We officially introduced FleetWatch in the first quarter, and already have 800 physician office units under subscription. While this is a modest start, it does validate our ability to convert one-time sales to recurring revenue subscriptions. Another new service is our ProxyLab product for web-based order entry and results reporting, which was introduced late last year. With our direct sales force, and in conjunction with our first major distribution partner, ARUP Laboratories, we've rapidly built a very full pipeline of prospects, which will help us to improve revenue growth and margins later this year. And finally, on an operational note, we were very pleased to receive our ISO 9001 re-certification last week. ProxyMed is committed to quality throughout our business, and whenever possible, we seek external quality certifications, such as ISO 9001 for labs, and EHNAC for payer services. All in all, we had a great quarter from an operational front. And with that, I'll turn it back over to Mike. Michael Hoover: Thank you, Nancy. 5 Let me first start out by saying that I continue to be extremely proud of the efforts of our associates and management team in achieving greater and greater success in the company. With net income of almost $50,000 before our non-cash dividend charges and positive EPS for the first time in ProxyMed's history, and now with our investment from General Atlantic Partners, ProxyMed is positioned as a formidable force in our industry. The $25 million investment from General Atlantic Partners is a strong endorsement by one of the country's premier investors. Over the past 20 years, GA has backed some of the biggest growth stories in our market. In healthcare, they are well know for being the early backer of Envoy during its growth years, and for being the current backer of Eclipsys Corporation. We view this investment as significant validation for ProxyMed and our efforts over the last 18 months. One of the reasons that General Atlantic is so well regarded is that they have a unique approach to investing. They are highly selective, targeting less than 15 investments each year in information technology and communication businesses around the world. This focus allows their professionals to dedicate most of their time to providing their portfolio companies with sustained strategic and operational assistance over each company's long-term investment horizon. The average length of a GA partnership is five to seven years. So, why did smart money like General Atlantic choose ProxyMed? In a word, "growth." To explain this growth potential, I'd like to spend the next few minutes sharing with you our opportunities for the rest of 2002 and beyond, and for an internal growth perspective from cross-selling and directly adding new physicians, and from an external growth perspective from strategic acquisitions. We recognize that our continued success depends upon penetrating a greater portion of the small physician office market place that consists of 275,000 physicians across the country, and driving incremental transactions through our network. This can first be achieved through the cross-selling of additional transaction services that we currently offer to our existing 100,000 direct and indirect physicians. Let me size the opportunity up this way...if over the next four to five years we can increase the current number of services utilized by each of these physicians, up from the current level of below two to over eight -- and we currently offer 10 different transaction services -- we believe that we will generate revenues of approximately $400 per physician per month. This represents an opportunity of close to $500 million in revenue per year, just from our existing customers. Therefore, you can understand that one of our key initiatives for 2002 is to monetize this cross-sell opportunity by telemarketing, innovative new pricing and packaging, and driving our customers to an integrated web offering. Don't get me wrong -- we are just as interested in adding new physicians directly through our proven Focus program methodology. Under FOCUS, we work closely with our insurance payer and pharmacy partners to target new physicians important to those partners. The power of FOCUS is that we are not randomly cold calling small physicians, which would be very expensive. We are being introduced at the practice level by our partners, and we have proven that we are experts at converting those introductions into successful transaction customers. In addition to adding physicians through the FOCUS program, we also have the opportunity to acquire them through strategic acquisitions - "strategic" in the sense that physicians required would be geographically desirable, or that additional services acquired from these businesses would be complementary to our current transaction sets. With $29 million in capital, and the acquisition opportunities that exist in today's marketplace, we believe that we may be able to acquire two to three businesses this year 6 that provides us access to additional physicians. Over the next few years, if we can acquire and/or sign up 100,000 new physicians this way, and we were able to have each one of them use eight of our transaction services, once again there's another $500 million market opportunity that awaits us. Now we realize, of course, that we will not achieve 100 percent of this $1 billion opportunity. But even achieving 40 to 50 percent represents a significant upside opportunity to today's revenues, and will help make ProxyMed a leader in the physician connectivity market. My two final notes -- we are delighted with our new partnership with General Atlantic, and look forward to the opportunities presented by their investment and their support. We would like to point out that our investment from General Atlantic is accretive to our shareholders for the remainder of 2002, so that we have ample time to deploy that capital internally or for acquisitions. As part of our relationship, we recently welcomed Braden Kelly, who heads the healthcare practice at General Atlantic Partners, to our board of directors, filling a current vacancy. Finally, our recent analyst guidance indicates that we will show positive net income and EPS for next quarter and the remainder of this year, and we are very comfortable with this guidance. That completes the formal presentation that we have today, and we'd like to now open it up for any questions that you have. [Questions from participants and answers from management omitted] M. Hoover: We thank you for your time an interest today. On a final administrative note, our Annual Meeting of the Shareholders is set for May 22, 2002, here in Fort Lauderdale and proxy materials are currently in the mail to those shareholders of record on March 27, 2002. So again, I want to thank you for your time today, and we look forward to your participation in our Q2 conference call. Have a good day. Good-bye. 7 EX-99.2 4 g75925ex99-2.txt PRESS RELEASE EXHIBIT 99.2 [ProxyMed Logo] FOR IMMEDIATE RELEASE IMPORTANT NOTE: ProxyMed's first quarter 2002 results live teleconference call is accessible by calling 1-800-633-8494 beginning at 2:00 p.m. Eastern Daylight Time on Wednesday, April 24, 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 4:00 p.m. EDT on April 24th. Contact: Judson E. Schmid Chief Financial Officer (954) 473-1001, ext. 353 investorrelations@proxymed.com PROXYMED ANNOUNCES FIRST QUARTER 2002 REVENUE INCREASE OF 37% AND EBITDA IMPROVEMENT OF $1.2 MILLION OVER SAME QUARTER IN 2001 FORT LAUDERDALE, FL (Business Wire) April 24, 2002 - ProxyMed, Inc. (Nasdaq: PILL), a leading provider of healthcare transaction processing services, today reported operating results for its first quarter of 2002. ProxyMed reported revenues for the first quarter of $11.5 million, an increase of 37% compared to revenues of $8.4 million for the same period of 2001. For the quarter, the Company's profit before interest, taxes, depreciation and amortization (EBITDA) was $0.6 million, compared to an EBITDA loss of $0.5 million a year ago. The Company also reported a positive net income (before deemed dividend and other charges) of $0.05 million compared to a net loss (before deemed dividend and other charges) of $3.5 million for the same quarter last year. Additionally, for the first quarter of 2002, net loss applicable to common shareholders and net loss per share were $0.6 million and $0.11, respectively, compared to a net loss of $5.9 million and net loss per share of $4.23 for the first quarter of 2001. Weighted average shares outstanding for the quarters ended March 31, 2002 and 2001 were 5,114,596 and 1,401,262, respectively. "In the first quarter, we achieved positive net income (before the non-cash deemed dividend charge related to conversions of our Series C preferred stock after year end) and EPS for the first time in the Company's history. This is a historic milestone for ProxyMed. With over $29 million of cash currently in the bank, no debt on our balance sheet, and a simplified capital structure, we are in our strongest financial position ever," said Judson E. Schmid, ProxyMed's chief financial officer. First quarter operating highlights include: CORPORATE o Completed the conversion of almost 99% of the outstanding Series C Preferred Stock into common shares pursuant to a Conversion Offer commencing in December 2001. (A non-cash, deemed dividend charge of $0.6 million for the shares converted in 2002 is reflected in the loss applicable to common shareholders for the first quarter of 2002.) o Repaid in full a $7.0 million promissory note related to the May 2001 acquisition of the assets of MDP Corporation. o Entered into an agreement to sell $25.0 million of common stock to four companies affiliated with General Atlantic Partners, LLC, a private equity investment fund, in a private placement transaction that closed on April 5, 2002. ELECTRONIC HEALTHCARE TRANSACTION PROCESSING o Processed 26.4 million financial and clinical transactions through ProxyNet(R), ProxyMed's secure, proprietary, national healthcare information network, representing an increase of 65% over the same quarter last year. o Formed a partnership with Hill Physicians Medical Group to provide connectivity services to one of the largest IPAs in the country. o Launched the web-based PreScribe(R) refill authorization service through PROXYMED.COM. o Added 4 new payers and 10 strategic partners. LABORATORY COMMUNICATION SOLUTIONS o Entered into a preferred partnership and joint marketing agreement with ARUP Laboratories to market our PROXYLAB(SM) order entry and results reporting system to over 1,000 hospitals. o Added 28 new accounts. o Enrolled 800 physician offices for our FleetWatch(SM) monitoring service. Michael K. Hoover, ProxyMed's chairman and chief executive officer said, "I am extremely pleased with our continued core growth. One of our strongest growth potentials is from cross-selling opportunities to our existing physician base. With the clean-up of our capital structure now complete, and with the addition of General Atlantic Partners as a new strategic investment partner, we can now make additional investments to accelerate core growth, while moving ahead with our strategic expansion plans to add new services and markets." 2 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 IDENTIFY AND INTEGRATE ACQUISITION CANDIDATES; 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. 3 PROXYMED, INC. AND SUBSIDIARIES Consolidated Statements of Operations (unaudited)

Three Months Ended March 31, --------------------------------- 2002 2001 ------------ ------------ Revenues $ 11,503,100 $ 8,402,900 ------------ ------------ Costs and expenses: Cost of sales 5,379,500 3,326,500 Selling, general and administrative expenses 5,492,900 5,625,000 Operating depreciation and amortization (1) 469,000 437,500 ------------ ------------ Total operating costs and expenses (1) 11,341,400 9,389,000 ------------ ------------ Operating income (loss), as adjusted (1) 161,700 (986,100) Acquisition-related amortization charges (99,500) (2,582,300) Interest income (expense), net (13,400) 101,200 ------------ ------------ Net income (loss) 48,800 (3,467,200) Deemed dividends and other charges 611,700 2,461,100 ------------ ------------ Net loss applicable to common shareholders $ (562,900) $ (5,928,300) ============ ============ Basic and diluted loss per share: $ (0.11) $ (4.23) ============ ============ Basic and diluted weighted average shares outstanding 5,114,596 1,401,262 ============ ============ EBITDA $ 630,700 $ (548,600) ============ ============

(1) Excludes acquisition-related amortization charges related to other intangibles PROXYMED, INC. AND SUBSIDIARIES Segment Information (unaudited)

Three Months Ended March 31, --------------------------------- 2002 2001 ------------ ------------ Revenues: Electronic healthcare transaction processing $ 5,278,000 $ 2,721,600 Laboratory communication solutions 6,225,100 5,681,300 ------------ ------------ $ 11,503,100 $ 8,402,900 ============ ============ EBITDA: Electronic healthcare transaction processing $ 516,300 $ (468,700) Laboratory communication solutions 747,600 1,120,200 Corporate and consolidating (633,200) (1,200,100) ------------ ------------ $ 630,700 $ (548,600) ============ ============

4 PROXYMED, INC. AND SUBSIDIARIES Consolidated Balance Sheet (unaudited)

March 31, December 31, 2002 2001 ------------- ------------- Assets Current assets: Cash and cash equivalents $ 5,168,000 $ 12,601,000 Accounts receivable - trade, net 5,642,400 5,588,800 Other receivables 146,600 88,800 Inventory 3,454,700 3,351,100 Other current assets 672,000 330,600 ------------- ------------- Total current assets 15,083,700 21,960,300 Property and equipment, net 3,857,700 3,831,700 Goodwill, net 7,960,400 7,960,400 Purchased technology, capitalized software and other intangibles, net 2,065,000 2,075,800 Other assets 53,300 53,300 ------------- ------------- Total assets $ 29,020,100 $ 35,881,500 ============= ============= Liabilities and Stockholders' Equity Current liabilities: Note payable $ -- $ 7,000,000 Accounts payable and accrued expenses 5,117,000 5,344,600 Deferred revenue and other current liabilities 601,000 222,300 ------------- ------------- Total current liabilities 5,718,000 12,566,900 Long-term deferred revenue and other long-term liabilities 381,000 442,100 ------------- ------------- Total liabilities 6,099,000 13,009,000 ------------- ------------- Stockholders' equity: Series C 7% Convertible preferred stock -- 300 Common stock 5,100 4,900 Additional paid-in capital 120,276,400 120,276,500 Accumulated deficit (97,174,500) (97,223,300) Note receivable from stockholder (185,900) (185,900) ------------- ------------- Total stockholders' equity 22,921,100 22,872,500 ------------- ------------- Total liabilities and stockholders' equity $ 29,020,100 $ 35,881,500 ============= =============

5 PROXYMED, INC. AND SUBSIDIARIES Consolidated Statement of Cash Flows (unaudited)

Three Months Ended March 31, --------------------------------- 2002 2001 ------------ ------------ Cash flows from operating activities: Net income (loss) $ 48,800 $ (3,467,200) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 568,500 3,019,800 Provision for (recovery of) doubtful accounts (34,300) 30,400 Provision for obsolete inventory 60,000 48,600 Compensatory stock options and warrants -- 325,000 Changes in assets and liabilities, net of effect of acquisitions and dispositions: Accounts and other receivables (90,800) (461,600) Inventory (163,600) (171,800) Prepaid expenses (340,800) (224,900) Accounts payable and accrued expenses 11,900 (285,000) Deferred revenue 94,100 52,200 Other, net (20,800) 3,100 ------------ ------------ Net cash provided (used in) operating activities 133,000 (1,131,400) ------------ ------------ Cash flows from investing activities: Acquisition of business, net of cash acquired -- (3,000,000) Capital expenditures (412,400) (240,100) Capitalized software (138,100) -- Payments for acquisition-related costs -- (3,800) ------------ ------------ Net cash used in investing activities (550,500) (3,243,900) ------------ ------------ Cash flows from financing activities: Payment of note payable related to acquisition of business (7,000,000) -- Dividends on preferred stock -- (1,600) Collections on notes receivable 13,700 8,400 Preferred stock conversion offer costs (200) -- Payment of capital leases (29,000) (25,600) ------------ ------------ Net cash used in financing activities (7,015,500) (18,800) ------------ ------------ Net decrease in cash and cash equivalents (7,433,000) (4,394,100) Cash and cash equivalents at beginning of period 12,601,000 8,841,100 ------------ ------------ Cash and cash equivalents at end of period $ 5,168,000 $ 4,447,000 ============ ============

6 -----END PRIVACY-ENHANCED MESSAGE-----

EX-99.1

                                                                    EXHIBIT 99.1

                                 PROXYMED, INC.
              FIRST QUARTER 2002 FINANCIAL RESULTS CONFERENCE CALL

                            Moderator: Michael Hoover
                                 April 24, 2002
                                  2:00 p.m. EDT

Operator:         Ladies and gentlemen, thank you for standing by. Welcome to
                  the ProxyMed first quarter earnings 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 Wednesday, April 24, 2002.

                  Your speakers for today are Nancy Ham, President and Chief
                  Operating Officer, Judd Schmid Chief Financial Officer, and
                  Michael Hoover, Chief Executive Officer. I would now like to
                  turn the conference over to Judd Schmid. Please go ahead, sir.

Judson Schmid:    Thank you, Kim. Good afternoon, everyone. Thank you for
                  joining us for ProxyMed's conference call to discuss the
                  company's results for the first quarter of 2002. I'm Judd
                  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 on ProxyMed's interpretation and analysis of
                  healthcare industry trends and management's ability to
                  successfully develop, market, sell, cross-sell, and implement
                  its clinical and financial transactions services and software
                  to physicians, pharmacies, laboratories and payers, as well as
                  its ability to identify and successfully integrate acquisition
                  candidates. 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 CEO, and providing an operational summary will be
                  Nancy Ham, our President and COO. Now I'd like to turn the
                  call over to Mike. Go ahead please, Mike.

Michael Hoover:   Thank you, Judd. Good afternoon everyone, and welcome to
                  ProxyMed's first quarter 2002 results conference call. Today
                  we will discuss and review our first quarter results, and then
                  we will review our strategies for the remainder of 2002 and
                  beyond.

                  As you probably know by now, ProxyMed differentiates itself
                  from our competitors by being the only company offering a full
                  suite of financial, clinical and administrative connectivity
                  solutions focused on the 275,000 physicians practicing in a
                  small group setting. We believe that this niche is greatly
                  under-served by our competitors, yet represents the best
                  opportunity for automating the 50 percent of claims that are
                  still delivered on paper. Once we automate this core financial
                  transaction, we then begin to cross-sell our other nine
                  services. This focus and strategy is the lynchpin of all our
                  efforts at ProxyMed, and it's really starting to pay off.

                  Since our last conference call, we've made a lot of exciting
                  progress. We completed the first quarter with strong momentum
                  in all areas, and in the last 90 days, we closed on a $25
                  million investment from General Atlantic Partners. We saw W.R.
                  Hambrecht initiate coverage of the company with a Strong Buy,
                  and just this morning, we reported our first ever positive net
                  income and earnings per share before dividend charges. This is
                  a tremendous milestone in the history of the company. For the
                  first time, our operating earnings have powered a positive
                  bottom line.




                  As you will hear from Judd in a moment, revenues and EBITDA
                  are up substantially from last year, and exceeded our analyst
                  numbers. We continue to gain momentum in our transaction-based
                  business, and we are more positive than we've ever been about
                  our prospects, both through core growth and through strategic
                  deployment of our new capital.

                  We will take the next few minutes to give you an update, and
                  then we will open the lines for any questions that you may
                  have.

                  Let me turn it back over to Judd, who will take us through the
                  financial results for the quarter. Judd.

Judson Schmid:    Thanks, Mike.

                  To begin our discussion, let me say that we are pleased to
                  report that we met our consensus revenue guidance of $11.5
                  million and handily beat our EBITDA expectations of $389,000.
                  To dive into the details, ProxyMed is reporting quarterly
                  revenues of $11.5 million, up a strong 37 percent over the
                  same period a year ago. In addition, we are reporting EBITDA
                  profits of $631,000, which represents our fourth straight
                  quarter of positive EBITDA. Finally, our GAAP net loss per
                  share is $0.11, beating the average street guidance of $0.14
                  per share.

                  As just noted, our consolidated revenues were $11.5 million in
                  the first quarter, compared to last year's first quarter
                  revenues of $8.4 million. This increase was fueled by a 94
                  percent revenue increase in Healthcare Transaction Services,
                  which rose for $2.7 million last year to $5.3 million this
                  year. In addition, we saw a 10 percent revenue increase in the
                  more mature Laboratory Communications Solution segment from
                  $5.7 million last year to $6.2 million this year.

                  As predicted, while revenue was down quarter-over-quarter, the
                  mix of our revenue is shifting positively. For the quarter,
                  approximately 46 percent of our revenues came from our
                  transaction processing segment, whereas only 39 percent was
                  from the segment for all of 2001. Our goal for 2002 is to
                  achieve a 50-50 revenue split, as we emphasize growth in our
                  transaction processing business, which offers us recurring
                  revenue and substantially higher operating margins.

                  In terms of transaction growth during the quarter, we
                  processed 26.4 million clinical and financial transactions
                  through ProxyNet, our secure national health care information
                  network, representing a terrific 65 percent increase over the
                  first quarter of 2001. Excluding encounters processed due to
                  the variability associated with this type of transaction, our
                  core transactions processed increased by five percent over the
                  fourth quarter of 2001, and by 96 percent over the first
                  quarter of 2001. We are on an annualized run rate of 106
                  million transactions for 2002, clearly making us the second
                  largest medical claims transaction services company in the
                  country. As Mike will discuss later, there are tremendous
                  growth opportunities, both internally and externally, that
                  will fuel the success of our transaction based businesses.

                  Turning to expenses, on the SG&A side, starting in the first
                  quarter, we began the hiring of associates in our transaction
                  business sales and marketing teams to drive our core revenue
                  growth. Although this increases our expenses in the quarter,
                  it builds the transaction foundation for success later in the
                  year. We've also added personnel in our technical and
                  development areas as it relates to our HIPAA compliance
                  efforts, representing incremental expenses over prior periods.
                  Consolidated SG&A expenses were $5.5 million for the quarter,
                  down from $5.6 million in the first quarter of last year, and
                  up only 2.8 percent from the fourth quarter.




                                       2


                  Focusing now on EBITDA, EBITDA dollars increased by a very
                  strong $1.2 million from a loss of $549,000 in the first
                  quarter of 2001 to a positive $631,000. As we've said in the
                  past, in all areas of the company, we continuously strive for
                  operational efficiencies as a way to improve our EBITDA
                  margins on a trendline basis. Given that a relatively large
                  portion of our cost structure is fixed or semi-fixed, it can
                  be a challenge to make this trendline perfectly smooth one
                  quarter to the next, but we are confident in achieving
                  expanding EBITDA margins on an annual basis. For all of 2001,
                  EBITDA margins were 3.6 percent, and we are very comfortable
                  with the analyst guidance that we will achieve at least a
                  consolidated EBITDA margin of 8.6 percent for 2002.

                  As we noted in our year end call, starting January 1st, we
                  adopted the new accounting rules regarding goodwill
                  amortization. As a result, our depreciation and amortization
                  has been reduced by roughly $800,000 per quarter from our
                  year-end 2001 run rates. Additionally, while our offer to
                  convert any outstanding Series C preferred stock was a
                  complete success, with almost 99 percent converting, we did
                  have to record $612,000 for a non-cash deemed dividend charge
                  for those shareholders that waited until January 2002 to
                  convert.

                  The change in revenue mix, along with changes in goodwill
                  amortization, allowed us to achieve our first ever positive
                  net income and EPS of just under a penny per share -- a true
                  milestone. Of course, this excludes the non-cash accounting
                  charge recorded for the conversions, but we remain extremely
                  confident that we will show reported positive EPS next
                  quarter.

                  For the three months of 2002, we spent $412,000 in capital
                  expenditures and $138,000 in capitalized software projects
                  related to HIPAA and the deployment of a private label
                  platform for our web services. Our total capitalized software
                  development is expected to be between 10 percent and 15
                  percent of our research and development costs for all of 2002.

                  Our cap structure is finally simple: 6.7 million shares
                  outstanding; 20,000 underlying common share for our preferred
                  stock; 733,000 warrants; and 777,000 stock options-- all
                  totaling 8.2 million fully-diluted shares. The shares
                  outstanding and the warrants include the 1.6 million shares
                  and the 549,000 warrants issued to General Atlantic Partners.
                  The General Atlantic Warrant was priced at market, cannot be
                  exercised for a year, and when exercised will bring in another
                  $8.8 million in cash. With $29 million of cash currently in
                  the bank and no debt on our balance sheet since paying off our
                  $7 million note in January, we are clearly in the best
                  financial position ever, and poised to continue to drive
                  shareholder value.

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

Nancy Ham:        Thanks, Judd.

                  We ended 2001 accomplishing most of the operational goals we
                  established for ourselves at the beginning of last year. We
                  entered 2002 well positioned as the nation's second largest
                  medical claims transaction company, and the largest provider
                  of both pharmacy and lab to physician connectivity solutions.
                  Our operational challenges this year are to execute our
                  cross-selling initiatives and to monetize the opportunity
                  presented by HIPAA, while maintaining, of course, our industry
                  leading customer service. So, let me start by discussing the
                  successes in our Healthcare Transactions segment, which
                  includes our payer services and prescription services
                  divisions.

                  Using our unique FOCUS methodology, which is our proven
                  approach to acquiring and maximizing small physician practices
                  of one to nine doctors, our sales team had a great




                                       3


                  quarter, being once again over quota on both the number of new
                  physicians and the number of services sold. In the first
                  quarter, we added almost 1,500 new physicians to our network.
                  But I'm even more pleased to report that the new physicians
                  signed up for over 4,000 services, or 2.8 services per
                  physician. This continues our accelerating trend in which new
                  physicians signed up for 2.1 services for all of 2001, and 2.5
                  services per physician for the fourth quarter, clearly showing
                  that our cross-selling plans are on track. In addition to this
                  direct customer expansion, we added 10 new electronic commerce
                  partners, representing almost 2,000 indirect physicians in
                  multiple markets, and bringing our total of active partners to
                  141.

                  As a result of these activities, we ended the quarter with
                  direct relationships with almost 62,000 physicians, and
                  indirect relationships with another 42,000. These positive
                  results for the first quarter exemplify ProxyMed's ability to
                  execute our FOCUS methodology by working closely with our
                  direct payers to convert their physicians from submitting
                  paper claims to submitting electronic transactions. The
                  success of our FOCUS program differentiates us from our
                  competitors and drives substantial value for our payer
                  partners. Using this competitive edge, we were able in the
                  first quarter to sign four more payers, bringing our total of
                  direct payer relationships to 347. And we also signed up
                  several of our existing payers to join the Focus program. This
                  strong linkage from our 62,000 direct physicians to our 347
                  direct payers is the core of our strategy here at ProxyMed.
                  Over 70 percent of our inbound volume comes from our direct
                  physicians, and over 92 percent of our outbound volume goes to
                  one of our direct payers. This clearly differentiates us from
                  clearinghouses, which typically aggregate inbound and outbound
                  volume to and from others while having few direct
                  relationships themselves. In contrast, at ProxyMed, our direct
                  relationships afford us stickier connections with lower
                  attrition, slightly less than five percent, and this forms the
                  foundation of the cross-sell opportunity.

                  Because of these close physician and payer relationships,
                  ProxyMed's HIPAA opportunity is different and more compelling
                  than that of a clearinghouse. HIPAA will give ProxyMed wide
                  access to transaction types that are offered today by really
                  just a few payers. This new influx of available transactions
                  will only accelerate our cross-selling efforts to our
                  expansive physician client base. In addition, smaller
                  physician offices, where we focus, will need new products and
                  services to make their practices HIPAA compliant, and we're
                  one of the few solution providers ready to meet those needs.
                  We're making the appropriate investments now to be positioned
                  to monetize this terrific revenue opportunity later this year
                  and on into 2003.

                  In addition to these HIPAA investments, we're strengthening
                  our value-added network infrastructure to support this strong
                  core growth. For example, payer services rolled out an
                  expanded "Digital Dashboard" transaction management system in
                  the quarter, which we call VISION. This customer intelligence
                  system monitors our clients' daily transactions, volumes and
                  trends and immediately flags for proactive response any
                  significant changes or opportunities, including volume trends
                  compared to historical results in client-specific projections,
                  increased rejection rates, opportunities such as transaction
                  mining, and cross-selling, and more. Our VISION system helps
                  us to provide better service to our clients while maximizing
                  the number of transaction they process each month.

                  Shifting now to prescription services, we're laying the
                  groundwork here for the profitable expansion for this line of
                  business. We're currently executing on a direct to physician
                  marketing campaign to expand the number of paying physician
                  subscribers in 11 target MSAs where we have both a critical
                  mass of online pharmacies and existing and referenceable
                  physician user base. In this expansion, we're leading with a
                  new web-based version of our popular PreScribe product, which
                  was launched during the quarter. Although early in the
                  campaign, I'm very encouraged by the initial results, and 75
                  percent of the implementations have been for the new web-based
                  service. This is




                                       4


                  obviously important because of the dramatic reduction in cost
                  to remotely implement a web-based customer versus having to go
                  on-site and install a Windows-based application. And I'm
                  particularly pleased that out of all of our physician users,
                  over two-thirds are paying a monthly subscription fee today,
                  up from just a third a year ago, clearly demonstrating the
                  value that physician offices receive in automating
                  prescription refills and getting off the phone.

                  Turning now to Lab Communication Solutions, we're pleased to
                  report that revenues grew by 10 percent over Q1 of last year.
                  However, revenues were below our record-setting peaks in Q3
                  and Q4. We executed on our plan to eliminate certain
                  non-strategic and lower margin services. In addition to this
                  expected impact, we did experience some delays in orders from
                  a larger lab and printer partner, but soon we're finalizing
                  negotiations for a new and expanded nationwide product and
                  services contract. We were also somewhat affected by industry
                  merger and acquisition activities, for example, the
                  announcements by Quest Diagnostics of their purchases of AML
                  and UniLab -- all three of whom were longstanding ProxyMed
                  customers -- and this M&A activity has caused some of their
                  collective purchases to be shifted until later in the year.
                  Our experience over 25 years in this business has been that
                  while orders can and do shift from quarter-to-quarter, they
                  are usually delayed and not lost. So, while our quarters are
                  not always perfectly smooth, year-over-year we're showing
                  consistent growth of 10 percent.

                  And as for the company overall, if we increase the percentage
                  of our revenue coming from our higher margin and recurring
                  revenue healthier transaction segment, we're creating a
                  smoother overall revenue curve quarter-over-quarter.

                  On the EBITDA side, while we were successful in eliminating
                  certain low margin products, as I just mentioned, we did see a
                  decline in EBITDA. One of our largest lease customers took
                  advantage of low interest rates to buy out their lease base,
                  which reduced EBITDA by almost $200,000. In addition, like
                  many employers, we experienced significant health and business
                  insurance premium increases in the first quarter. We
                  absolutely remain committed to improving our EBITDA margins,
                  and we took proactive steps to reduce our expenses by a pro
                  forma $100,000 a quarter going forward.

                  Looking ahead, we see strength and opportunity in core
                  products in our contract manufacturing business. On the core
                  products side, we're making progress in penetrating a new
                  target market, anatomical pathology labs, who traditionally do
                  not use remote intelligent devices to deliver lab results.
                  With the price points for color printing becoming more
                  economical, we're targeting this segment of the lab market for
                  growth, and we're pleased that we sold our first units within
                  the quarter. In addition, we began cross-selling new recurring
                  revenue services, such as our FleetWatch monitoring service to
                  our device customers. We officially introduced FleetWatch in
                  the first quarter, and already have 800 physician office units
                  under subscription. While this is a modest start, it does
                  validate our ability to convert one-time sales to recurring
                  revenue subscriptions. Another new service is our ProxyLab
                  product for web-based order entry and results reporting, which
                  was introduced late last year. With our direct sales force,
                  and in conjunction with our first major distribution partner,
                  ARUP Laboratories, we've rapidly built a very full pipeline of
                  prospects, which will help us to improve revenue growth and
                  margins later this year. And finally, on an operational note,
                  we were very pleased to receive our ISO 9001 re-certification
                  last week. ProxyMed is committed to quality throughout our
                  business, and whenever possible, we seek external quality
                  certifications, such as ISO 9001 for labs, and EHNAC for payer
                  services.

                  All in all, we had a great quarter from an operational front.
                  And with that, I'll turn it back over to Mike.

Michael Hoover:   Thank you, Nancy.





                                       5


                  Let me first start out by saying that I continue to be
                  extremely proud of the efforts of our associates and
                  management team in achieving greater and greater success in
                  the company. With net income of almost $50,000 before our
                  non-cash dividend charges and positive EPS for the first time
                  in ProxyMed's history, and now with our investment from
                  General Atlantic Partners, ProxyMed is positioned as a
                  formidable force in our industry.

                  The $25 million investment from General Atlantic Partners is a
                  strong endorsement by one of the country's premier investors.
                  Over the past 20 years, GA has backed some of the biggest
                  growth stories in our market. In healthcare, they are well
                  know for being the early backer of Envoy during its growth
                  years, and for being the current backer of Eclipsys
                  Corporation. We view this investment as significant validation
                  for ProxyMed and our efforts over the last 18 months.

                  One of the reasons that General Atlantic is so well regarded
                  is that they have a unique approach to investing. They are
                  highly selective, targeting less than 15 investments each year
                  in information technology and communication businesses around
                  the world. This focus allows their professionals to dedicate
                  most of their time to providing their portfolio companies with
                  sustained strategic and operational assistance over each
                  company's long-term investment horizon. The average length of
                  a GA partnership is five to seven years.

                  So, why did smart money like General Atlantic choose ProxyMed?
                  In a word, "growth." To explain this growth potential, I'd
                  like to spend the next few minutes sharing with you our
                  opportunities for the rest of 2002 and beyond, and for an
                  internal growth perspective from cross-selling and directly
                  adding new physicians, and from an external growth perspective
                  from strategic acquisitions.

                  We recognize that our continued success depends upon
                  penetrating a greater portion of the small physician office
                  market place that consists of 275,000 physicians across the
                  country, and driving incremental transactions through our
                  network. This can first be achieved through the cross-selling
                  of additional transaction services that we currently offer to
                  our existing 100,000 direct and indirect physicians. Let me
                  size the opportunity up this way...if over the next four to
                  five years we can increase the current number of services
                  utilized by each of these physicians, up from the current
                  level of below two to over eight -- and we currently offer 10
                  different transaction services -- we believe that we will
                  generate revenues of approximately $400 per physician per
                  month. This represents an opportunity of close to $500 million
                  in revenue per year, just from our existing customers.
                  Therefore, you can understand that one of our key initiatives
                  for 2002 is to monetize this cross-sell opportunity by
                  telemarketing, innovative new pricing and packaging, and
                  driving our customers to an integrated web offering.

                  Don't get me wrong -- we are just as interested in adding new
                  physicians directly through our proven Focus program
                  methodology. Under FOCUS, we work closely with our insurance
                  payer and pharmacy partners to target new physicians important
                  to those partners. The power of FOCUS is that we are not
                  randomly cold calling small physicians, which would be very
                  expensive. We are being introduced at the practice level by
                  our partners, and we have proven that we are experts at
                  converting those introductions into successful transaction
                  customers.

                  In addition to adding physicians through the FOCUS program, we
                  also have the opportunity to acquire them through strategic
                  acquisitions - "strategic" in the sense that physicians
                  required would be geographically desirable, or that additional
                  services acquired from these businesses would be complementary
                  to our current transaction sets. With $29 million in capital,
                  and the acquisition opportunities that exist in today's
                  marketplace, we believe that we may be able to acquire two to
                  three businesses this year




                                       6


                  that provides us access to additional physicians. Over the
                  next few years, if we can acquire and/or sign up 100,000 new
                  physicians this way, and we were able to have each one of them
                  use eight of our transaction services, once again there's
                  another $500 million market opportunity that awaits us.

                  Now we realize, of course, that we will not achieve 100
                  percent of this $1 billion opportunity. But even achieving 40
                  to 50 percent represents a significant upside opportunity to
                  today's revenues, and will help make ProxyMed a leader in the
                  physician connectivity market.

                  My two final notes -- we are delighted with our new
                  partnership with General Atlantic, and look forward to the
                  opportunities presented by their investment and their support.
                  We would like to point out that our investment from General
                  Atlantic is accretive to our shareholders for the remainder of
                  2002, so that we have ample time to deploy that capital
                  internally or for acquisitions. As part of our relationship,
                  we recently welcomed Braden Kelly, who heads the healthcare
                  practice at General Atlantic Partners, to our board of
                  directors, filling a current vacancy. Finally, our recent
                  analyst guidance indicates that we will show positive net
                  income and EPS for next quarter and the remainder of this
                  year, and we are very comfortable with this guidance.

                  That completes the formal presentation that we have today, and
                  we'd like to now open it up for any questions that you have.

        [Questions from participants and answers from management omitted]


M. Hoover:        We thank you for your time an interest today. On a final
                  administrative note, our Annual Meeting of the Shareholders is
                  set for May 22, 2002, here in Fort Lauderdale and proxy
                  materials are currently in the mail to those shareholders of
                  record on March 27, 2002.

                  So again, I want to thank you for your time today, and we look
                  forward to your participation in our Q2 conference call. Have
                  a good day. Good-bye.






                                       7

EX-99.2

                                                                    EXHIBIT 99.2

[ProxyMed Logo]

                              FOR IMMEDIATE RELEASE


IMPORTANT NOTE: ProxyMed's first quarter 2002 results live teleconference call
is accessible by calling 1-800-633-8494 beginning at 2:00 p.m. Eastern Daylight
Time on Wednesday, April 24, 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 4:00 p.m. EDT on April 24th.

Contact:
Judson E. Schmid
Chief Financial Officer
(954) 473-1001, ext. 353
investorrelations@proxymed.com


          PROXYMED ANNOUNCES FIRST QUARTER 2002 REVENUE INCREASE OF 37%
        AND EBITDA IMPROVEMENT OF $1.2 MILLION OVER SAME QUARTER IN 2001

         FORT LAUDERDALE, FL (Business Wire) April 24, 2002 - ProxyMed, Inc.
(Nasdaq: PILL), a leading provider of healthcare transaction processing
services, today reported operating results for its first quarter of 2002.

         ProxyMed reported revenues for the first quarter of $11.5 million, an
increase of 37% compared to revenues of $8.4 million for the same period of
2001. For the quarter, the Company's profit before interest, taxes, depreciation
and amortization (EBITDA) was $0.6 million, compared to an EBITDA loss of $0.5
million a year ago.

         The Company also reported a positive net income (before deemed dividend
and other charges) of $0.05 million compared to a net loss (before deemed
dividend and other charges) of $3.5 million for the same quarter last year.

         Additionally, for the first quarter of 2002, net loss applicable to
common shareholders and net loss per share were $0.6 million and $0.11,
respectively, compared to a net loss of $5.9 million and net loss per share of
$4.23 for the first quarter of 2001. Weighted average shares outstanding for the
quarters ended March 31, 2002 and 2001 were 5,114,596 and 1,401,262,
respectively.





         "In the first quarter, we achieved positive net income (before the
non-cash deemed dividend charge related to conversions of our Series C preferred
stock after year end) and EPS for the first time in the Company's history. This
is a historic milestone for ProxyMed. With over $29 million of cash currently in
the bank, no debt on our balance sheet, and a simplified capital structure, we
are in our strongest financial position ever," said Judson E. Schmid, ProxyMed's
chief financial officer.

         First quarter operating highlights include:

         CORPORATE

         o        Completed the conversion of almost 99% of the outstanding
                  Series C Preferred Stock into common shares pursuant to a
                  Conversion Offer commencing in December 2001. (A non-cash,
                  deemed dividend charge of $0.6 million for the shares
                  converted in 2002 is reflected in the loss applicable to
                  common shareholders for the first quarter of 2002.)

         o        Repaid in full a $7.0 million promissory note related to the
                  May 2001 acquisition of the assets of MDP Corporation.

         o        Entered into an agreement to sell $25.0 million of common
                  stock to four companies affiliated with General Atlantic
                  Partners, LLC, a private equity investment fund, in a private
                  placement transaction that closed on April 5, 2002.

         ELECTRONIC HEALTHCARE TRANSACTION PROCESSING

         o        Processed 26.4 million financial and clinical transactions
                  through ProxyNet(R), ProxyMed's secure, proprietary, national
                  healthcare information network, representing an increase of
                  65% over the same quarter last year.

         o        Formed a partnership with Hill Physicians Medical Group to
                  provide connectivity services to one of the largest IPAs in
                  the country.

         o        Launched the web-based PreScribe(R) refill authorization
                  service through PROXYMED.COM.

         o        Added 4 new payers and 10 strategic partners.

         LABORATORY COMMUNICATION SOLUTIONS

         o        Entered into a preferred partnership and joint marketing
                  agreement with ARUP Laboratories to market our PROXYLAB(SM)
                  order entry and results reporting system to over 1,000
                  hospitals.

         o        Added 28 new accounts.

         o        Enrolled 800 physician offices for our FleetWatch(SM)
                  monitoring service.

         Michael K. Hoover, ProxyMed's chairman and chief executive officer
said, "I am extremely pleased with our continued core growth. One of our
strongest growth potentials is from cross-selling opportunities to our existing
physician base. With the clean-up of our capital structure now complete, and
with the addition of General Atlantic Partners as a new strategic investment
partner, we can now make additional investments to accelerate core growth, while
moving ahead with our strategic expansion plans to add new services and
markets."



                                       2


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 IDENTIFY AND INTEGRATE ACQUISITION CANDIDATES; 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.




                                       3


                         PROXYMED, INC. AND SUBSIDIARIES
                Consolidated Statements of Operations (unaudited)






                                                           Three Months Ended March 31,
                                                         ---------------------------------
                                                             2002                 2001
                                                         ------------         ------------
                                                                        
Revenues                                                 $ 11,503,100         $  8,402,900
                                                         ------------         ------------
Costs and expenses:
     Cost of sales                                          5,379,500            3,326,500
     Selling, general and administrative expenses           5,492,900            5,625,000
     Operating depreciation and amortization (1)              469,000              437,500
                                                         ------------         ------------
        Total operating costs and expenses (1)             11,341,400            9,389,000
                                                         ------------         ------------

        Operating income (loss), as adjusted (1)              161,700             (986,100)

Acquisition-related amortization charges                      (99,500)          (2,582,300)
Interest income (expense), net                                (13,400)             101,200
                                                         ------------         ------------
        Net income (loss)                                      48,800           (3,467,200)

Deemed dividends and other charges                            611,700            2,461,100
                                                         ------------         ------------

        Net loss applicable to common shareholders       $   (562,900)        $ (5,928,300)
                                                         ============         ============

Basic and diluted loss per share:                        $      (0.11)        $      (4.23)
                                                         ============         ============

Basic and diluted weighted average shares outstanding       5,114,596            1,401,262
                                                         ============         ============

EBITDA                                                   $    630,700         $   (548,600)
                                                         ============         ============



(1)      Excludes acquisition-related amortization charges related to other
         intangibles


                         PROXYMED, INC. AND SUBSIDIARIES
                         Segment Information (unaudited)





                                                            Three Months Ended March 31,
                                                         ---------------------------------
                                                             2002                2001
                                                         ------------         ------------
                                                                        
Revenues:
     Electronic healthcare transaction processing        $  5,278,000         $  2,721,600
     Laboratory communication solutions                     6,225,100            5,681,300
                                                         ------------         ------------
                                                         $ 11,503,100         $  8,402,900
                                                         ============         ============

EBITDA:
     Electronic healthcare transaction processing        $    516,300         $   (468,700)
     Laboratory communication solutions                       747,600            1,120,200
     Corporate and consolidating                             (633,200)          (1,200,100)
                                                         ------------         ------------
                                                         $    630,700         $   (548,600)
                                                         ============         ============





                                       4

                         PROXYMED, INC. AND SUBSIDIARIES
                     Consolidated Balance Sheet (unaudited)





                                                                               March 31,           December 31,
                                                                                 2002                  2001
                                                                             -------------         -------------
                                                                                             
                                   Assets
Current assets:
     Cash and cash equivalents                                               $   5,168,000         $  12,601,000
     Accounts receivable - trade, net                                            5,642,400             5,588,800
     Other receivables                                                             146,600                88,800
     Inventory                                                                   3,454,700             3,351,100
     Other current assets                                                          672,000               330,600
                                                                             -------------         -------------
        Total current assets                                                    15,083,700            21,960,300
Property and equipment, net                                                      3,857,700             3,831,700
Goodwill, net                                                                    7,960,400             7,960,400
Purchased technology, capitalized software and other intangibles, net            2,065,000             2,075,800
Other assets                                                                        53,300                53,300
                                                                             -------------         -------------
        Total assets                                                         $  29,020,100         $  35,881,500
                                                                             =============         =============

                    Liabilities and Stockholders' Equity

Current liabilities:
     Note payable                                                            $          --         $   7,000,000
     Accounts payable and accrued expenses                                       5,117,000             5,344,600
     Deferred revenue and other current liabilities                                601,000               222,300
                                                                             -------------         -------------
        Total current liabilities                                                5,718,000            12,566,900
Long-term deferred revenue and other long-term liabilities                         381,000               442,100
                                                                             -------------         -------------
        Total liabilities                                                        6,099,000            13,009,000
                                                                             -------------         -------------
Stockholders' equity:
     Series C 7% Convertible preferred stock                                            --                   300
     Common stock                                                                    5,100                 4,900
     Additional paid-in capital                                                120,276,400           120,276,500
     Accumulated deficit                                                       (97,174,500)          (97,223,300)
     Note receivable from stockholder                                             (185,900)             (185,900)
                                                                             -------------         -------------
        Total stockholders' equity                                              22,921,100            22,872,500
                                                                             -------------         -------------

        Total liabilities and stockholders' equity                           $  29,020,100         $  35,881,500
                                                                             =============         =============










                                       5

                         PROXYMED, INC. AND SUBSIDIARIES
                Consolidated Statement of Cash Flows (unaudited)





                                                                         Three Months Ended March 31,
                                                                       ---------------------------------
                                                                           2002                 2001
                                                                       ------------         ------------
                                                                                      
Cash flows from operating activities:
     Net income (loss)                                                 $     48,800         $ (3,467,200)
     Adjustments to reconcile net income (loss) to net cash
         used in operating activities:
            Depreciation and amortization                                   568,500            3,019,800
            Provision for (recovery of) doubtful accounts                   (34,300)              30,400
            Provision for obsolete inventory                                 60,000               48,600
            Compensatory stock options and warrants                              --              325,000
            Changes in assets and liabilities, net of
               effect of acquisitions and dispositions:
                Accounts and other receivables                              (90,800)            (461,600)
                Inventory                                                  (163,600)            (171,800)
                Prepaid expenses                                           (340,800)            (224,900)
                Accounts payable and accrued expenses                        11,900             (285,000)
                Deferred revenue                                             94,100               52,200
                Other, net                                                  (20,800)               3,100
                                                                       ------------         ------------
         Net cash provided (used in) operating activities                   133,000           (1,131,400)
                                                                       ------------         ------------

Cash flows from investing activities:
     Acquisition of business, net of cash acquired                               --           (3,000,000)
     Capital expenditures                                                  (412,400)            (240,100)
     Capitalized software                                                  (138,100)                  --
     Payments for acquisition-related costs                                      --               (3,800)
                                                                       ------------         ------------
         Net cash used in investing activities                             (550,500)          (3,243,900)
                                                                       ------------         ------------

Cash flows from financing activities:
     Payment of note payable related to acquisition of business          (7,000,000)                  --
     Dividends on preferred stock                                                --               (1,600)
     Collections on notes receivable                                         13,700                8,400
     Preferred stock conversion offer costs                                    (200)                  --
     Payment of capital leases                                              (29,000)             (25,600)
                                                                       ------------         ------------
         Net cash used in financing activities                           (7,015,500)             (18,800)
                                                                       ------------         ------------

Net decrease in cash and cash equivalents                                (7,433,000)          (4,394,100)
Cash and cash equivalents at beginning of period                         12,601,000            8,841,100
                                                                       ------------         ------------
Cash and cash equivalents at end of period                             $  5,168,000         $  4,447,000
                                                                       ============         ============










                                       6