American HomePatient First to Implement e-CMNs

NASHVILLE, TN

Nov. 11, 2002

American HomePatient (OTC: AHOM - News; AHOM), the nation's fourth largest provider of home medical equipment, announced today that it is the first to implement electronic Certificates of Medical Necessity (CMNs) for its network of 280+ branches. AHOM has been using Trac Medical's CareCert e-CMN system since August 21 with Pulmonary Specialties, a physician practice located in Lincoln, Nebraska. Trac Medical is a majority owned subsidiary of Authentidate Holding Corp.(Nasdaq: ADAT - News).

e-CMNs offer many benefits to physicians, including reduced paperwork and improved productivity. "The real benefit to doctors is that it saves them money by making the process faster," said Joe Furlong, CEO, American HomePatient. "Increased office productivity lets doctors spend more time with their patients, which is really what they want to do."

In the e-CMN process, AHOM initiates a CMN on the TracMed server, which sends the physician's office an email informing them of a CMN to be completed. An authorized staff member goes to Trac Medical's secure server, retrieves the document, completes the fields requested, and sends it on to the physician. The physician then accesses the document using a different code, reviews it and makes any changes, signs it electronically and sends it back to the vendor. The system meets or exceeds all security, HIPAA and Medicare guidelines.

The paper CMN process is extremely time-intensive for the physician--over one-half of paper CMNs include some completion error and must be sent back by the supplier for correction. With its use of prompts to indicate needed information, the e-CMN technology dramatically improves accuracy in completing CMNs. The prompting system leaves no room for unauthorized individuals to add or change data. And because the entire process is electronic, the latest, most accurate version is always the one in play. Other versions are archived for auditing purposes.

One of the key issues in implementing e-CMNs is physician acceptance. With the CareCert system's seamless integration process, American HomePatient hopes to achieve significant physician participation in the first two years of deployment. AHOM logs approximately 30,000 Medicare CMNs and Physician's Orders per month.

"Physician's staff love the e-CMN ... it makes their lives easier by saving them time and paperwork," said Doug Gouy, AHOM's VP of Reimbursement. "And it makes our lives easier, too, by reducing the cycle time from delivery of the service to billing, thereby improving our cash flow."

About Authentidate Holding Corp.
Authentidate Holding Corp. (AHC) is the holding company of five business units; DocStar, Authentidate International AG, Authentidate, DJS Marketing Group/Computer Professionals International and Trac Medical Solutions, Inc. DocStar sells a complete line of proprietary document imaging products. Authentidate and Authentidate AG provide the authentication of digital data through its proprietary and patent pending technology. Authentidate intends to establish itself as the authority on "content security" as it is a growing sector of the electronic network security infrastructure market. DJS delivers professional services centered around technology systems integration projects, staff augmentation, out-tasking, outsourcing services and resells computer related products. Trac Medical uses the Authentidate service in the medical supply business.

About American HomePatient, Inc.
Founded in 1983, American HomePatient, Inc. is one of the nation's largest diversified home health care providers, supplying home medical products and services through more than 280 centers located across the United States. Its extensive offerings include respiratory therapies; enteral and parental nutrition services; mobility equipment and related medical supplies; infusion services; respiratory diagnostic equipment; and disease intervention programs for patients in the home environment. American HomePatient's common stock is currently traded over-the-counter under the symbol AHOM.

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