Exhibit 10.19(ii)

CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND

FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

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MEDecision

Amendment #1 to the Master Product Agreement

This Amendment #1 (“Amendment”) to the Master Product Agreement (“Agreement”)
#PHS-001 dated June 30, 2004 is between MEDecision, Inc. (“MEDecision”), and
PacifiCare Health Systems, Inc. (“Customer”), for itself and its Affiliates and
is effective as of April 16, 2007.

1.     THE REFERENCE TO UNITED HEALTH CARE IN APPENDIX C IS HEREBY DELETED.

2.     APPENDIX A TO THIS AMENDMENT IS ADDED TO THE AGREEMENT.

All other terms in the Agreement remain unchanged.

Intending to be legally bound, the Parties have had this Agreement executed by
their duly authorized officials.

MEDECISION, INC.

 

PACIFICARE HEALTH SYSTEMS, INC.

 

 

 

By:

/s/ John Capobianco

 

By:

/s/ Peter E. Cote

 

Name:

John Capobianco

 

Name:

Peter E. Cote

 

Title:

President and Chief Operating Officer

 

Title:

Director of IT Procurement

 

Date:

April 24, 2007

 

Date:

April 16, 2007

 

 

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MEDecision

Schedule 2

 

Number: UHC-002P

 

Customer:  United HealthCare Services, Inc.

This Schedule incorporates the Application Service Provider Agreement by and
between PacifiCare Health Systems, Inc. and MEDecision, Inc., effective June 14,
2003 (“ASP Agreement”) and the Master Product Agreement Number: PHS-001 between
MEDecision, Inc. (“MEDecision”) and PacifiCare Health Systems, Inc., effective
June 30, 2004 (“MPA Agreement”) (collectively the “Agreement”) PacifiCare Health
Systems is an Affiliate of United HealthCare Services, Inc. (“Customer”). 
Customer acquired PacifiCare Health Systems, Inc. in December 2005.

Customer Purchase Order Number (optional):  
               n/a                                 

Authorized Locations: MEDecision ASP

Effective Date of this Schedule: April 16, 2007

Expiration Date of this Schedule: January 15, 2008

The Initial Term is the period of time from the Effective Date of this Schedule
to the Expiration Date of this Schedule.

1.     LICENSE

A.     MEDECISION PRODUCTS.

Subject to the terms of the Agreement, MEDecision grants to Customer a
nonexclusive, nontransferable license to use the MEDecision Products listed in
Table One in the normal course of the Customer’s managed care business.

Table One: MEDecision Products

MEDecision
Product Code

 

MEDecision
Product Name

 

Number of
Members
Lives

 

Customer
Server or
MEDecisionServer

 

Line(s) of Business

 

License Fee

 

Collaborative Data Exchange consisting of:

 

[***]

 

[***]

 

[***]

 

[***]

[***]

 

[***]

 

 

 

 

 

 

 

 

[***]

 

[***]

 

 

 

 

 

 

 

 

 

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 *** Confidential material which has been omitted and filed separately with the
Securities and Exchange Commission.

2

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NOTES:

1.               THE LICENSE FEE INCLUDES PRODUCT LICENSES FOR THE [***] (SEE
NOTE 3 BELOW), [***], SUPPORT AND [***] TRANSACTIONS FOR UP TO [***].  THE
LICENSE FEE IS A FEE THAT COVERS EVERYTHING DESCRIBED IN THIS FOOTNOTE (1) FOR
THE INITIAL TERM.

The License Fee covers roll-out to:

[***] (“Pilot Scope”) to be selected by Customer.  The [***]may comprise more
than [***].

During the course of the term of this Schedule, Customer may increase the Pilot
Scope to include more than [***]by entering into an amendment to this Schedule
and by entering into a new Scope of Work, in which case additional Services Fees
may apply.  See the following footnotes for additional details.

(2)           During the Initial Term of this Schedule, should Customer add
additional Member/Lives over the [***], the parties will enter into an amendment
to this Schedule and the following additional License Fee will apply:

·              For each additional Member/Life added, an additional per
Member/Life per month (“PMPM”) License Fee of $[***]will be incurred.

(3)           During the Initial Term of this Schedule, should Customer add
additional [***] beyond the [***], additional Services Fees may apply and the
parties will enter into a separate Scope of Work.  No other License Fees will
apply.

·               Additional Services Fees would be incurred if:

I.              [***]

ii.             [***]

iii.            [***]

(4)           Customer may work with MEDecision to create a mutually agreeable
risk/reward pricing model for the continuation of the Product licenses for the
Patient Clinical Summary (PCS) and IEXCHANGE Web Products listed in Table One
above.  The model would be developed based upon historical data from Customer
(i.e., geographical data on physicians/hospitals/facilities and membership by
state), financial results achieved during the Pilot Scope, MEDecision’s
historical experience from a roll-out and adoption perspective.

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 *** Confidential material which has been omitted and filed separately with the
Securities and Exchange Commission.

3

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(5)           If Customer chooses to enter into a new Schedule, but Customer and
MEDecision cannot reach agreement on the risk/reward pricing model described in
Note #4 above, then the following fee structure will apply until [***]:

After the Initial Term of this Schedule, Customer may extend the term of the
Products licensed in Table One for up to [***] (each a “Renewal Term”) by
providing MEDecision with at least [***] days prior written notice of its intent
to renew and entering into a new Schedule to the Agreement by the end of each
Renewal Term.

The following additional License Fees will apply:

One Year Renewal
License Fee

 

Number of Member/Lives

 

Number of Included Annual
PCS and iEXCHANGE Web
Transactions

$[***]

 

[***]

 

[***]

$[***]

 

[***]

 

[***]

 

·             The One Year Renewal License Fee includes [***]

·             Once the number of Member/Lives exceeds [***], the parties will
enter into an amendment to this Schedule and Customer will pay an additional
[***].  Thereafter the Annual One Year Renewal License Fee will be $[***]and the
annual included transactions for PCS and iEXCHANGE Web [***].

·             Should Customer require additional transaction beyond those
included in the One Year Renewal License Fee as described in the above table,
Customer can purchase additional annual bundles of transactions at the
discounted fees as set forth below by entering into an amendment to the
applicable Schedule.

·                  [***]

·                  [***]

·                  [***]

2.     THE COLLABORATIVE DATA EXCHANGE PRODUCTS DESCRIBED IN TABLE ONE ARE
HOSTED AT MEDECISION’S ASP FACILITY AS FURTHER DESCRIBED IN THE ASP AGREEMENT.

3.     PAYMENT TERMS

MEDecision shall invoice Customer $[***] upon execution of this Schedule 2 and
the remaining $[***] upon the first day the above licensed products are put into
production and made available to at least one of Customer’s [***].  Payment
terms are net [***].

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 *** Confidential material which has been omitted and filed separately with the
Securities and Exchange Commission.

4

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Intending to be legally bound, each party has had this Schedule executed by its
duly authorized representative.

MEDECISION, INC.

 

UNITED HEALTHCARE SERVICES, INC.

 

 

 

By:

/s/ John Capobianco

 

By:

/s/ Dawn Bazarko

 

 

 

 

 

 

 

Name: John Capobianco

 

Name:

Dawn Bazarko

 

 

 

 

 

 

Title: President and COO

 

Title:

Senior Vice President, Clinical Advancement

 

 

 

 

 

 

Date:

April 20, 2007

 

Date:

April 12, 2007

 

 

5

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CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND

FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

Proprietary and Confidential

[g193381ko05i001.jpg]

MEDecision

601 Lee Rd.  –  Chesterbrook Corporate Center  –  Wayne, PA 19087  –  Phone:
610-540-0202  –  Fax: 610-540-5100

Statement of Work:  Patient Clinical Summary Implementation

 

Number:  UHC-SOW001

 

Customer:  United HealthCare Services, Inc. (UHC)

This Statement of Work incorporates into and is governed by the Master Services
Agreement (hereinafter referred to as “Agreement”) by and between PacifiCare
Health Systems, Inc. and MEDecision, Inc., dated June 30,2004 PacifiCare Health
Systems is an Affiliate of United HealthCare Services, Inc. (“Customer”). 
Customer acquired PacifiCare Health Systems, Inc. in December 2005.

Effective Date of this Statement of Work: April 16, 2007

1.                                       PROJECT COORDINATORS.

Customer:  TBD

MEDecision:  TBD

2.                                       LOCATION OF SERVICES.

Customer’s offices and MEDecision’s offices

3.                                       DESCRIPTION OF PROJECT AND SERVICES FOR
THIS STATEMENT OF WORK (SOW)

Background

UHC has licensed MEDecision’s Patient Clinical Summary (PCS) product.  The PCS
product takes raw claims, member and provider data provided by Customer (in a
MEDecision specified format) and creates a document of aggregated, summarized,
and analyzed information for use by facilities and healthcare providers at the
point of care for a designated member who is being treated at that specific
time.  The purpose of the PCS is to provide relevant actionable intelligence to
the caregiver so that better healthcare decisions are made to positively affect
the quality of care decisions and healthcare outcomes, reduce duplication of
services and to decrease costly and potentially harmful mistakes.  Access to the
Patient Clinical Summary is via iEXCHANGE Web, MEDecision’s secure web portal.

UHC plans to make PCS available to both providers, through the iEXCHANGE Web
provider pathway, and to their internal users through the iEXCHANGE Web Managed
Care Organization (MCO) pathway.

UHC wishes to test MEDecision’s PCS in a pilot setting in order to validate the
estimated return on investment and determine if continued and/or wider
deployment is justified.  UHC may use MEDecision’s iEXCHANGE notification
process during the pilot (“pilot

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project”) to [***].  At a minimum, UHC will use the [***].  At the time that UHC
chooses to implement the [***], MEDecision would estimate the level of effort
needed to configure the [***] and UHC and MEDecision will enter into a new SOW.

Project Description

This SOW will describe the tasks and services required for MEDecision to partner
with UHC to successfully implement the Patient Clinical Summary at each of its
[***] and be accessible by both providers and internal staff.

Scope

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

Project Management

This Statement of Work provides for a MEDecision project manager to manage the
project throughout the implementation.

This is based on project duration of no longer than [***] beginning with the
project kickoff.  If additional time is required for the project due to issues
related to the Customer, additional costs will be estimated and presented for
approval, dependent upon the reason for the delay and additional time required.

Project Management includes:

·                  [***]

·                  [***]

·                  [***]

·                  [***]

The project manager is also responsible for providing all relevant, updated
customer documentation available for iEXCHANGE Web and the PCS.

Technical Implementation Services

Technical Implementation Services includes:

Review with the Customer the security and failover measures in place as further
described in the Application Service Provider Agreement dated June 14, 2003
between MEDecision, Inc. and PacifCare Health Systems, Inc..
Hardware setup and software implementation at the MEDecision ASP site.
Delivery of the following software components:

·                  [***]

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*** Confidential material which has been omitted and filed separately with the
Securities and Exchange Commission.

2

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·                  [***]

Configuration and Analysis

This phase involves the discussions and decisions that are required in order to
facilitate the implementation and rollout of the PCS.  This phase includes
completion of the following tasks:

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

This phase also includes standard batch member interface implementation which
includes:

·                  [***]

·                  [***]

·                  [***]

Data Provided by UHC

·                  Data files will be formatted by UHC according to the record
layout specifications in the MEDecision Data Prep Guide (ver. 1.0), with the
following exceptions:

·                  Data fields populated by UHC will consist of those fields
identified as required in the Data Prep Guide, and any optional items mutually
agreed upon by UHC and MEDecision

·                  UHC will fill any claim cost fields with dummy default values

·                  Group/Plan data will NOT be provided even though it is listed
as a required file in the MEDecision Data Prep Guide document

·                  Member data will include all UHC health plan members
(fully-insured and ASO) residing in the [***] as defined by UHC, currently
active at the time the data is extracted from the UHC database.

·                  Monthly claims data will include all claims with service
dates in the previous month for any UHC members included in that month’s member
extract.

·                  At least [***] prior to activation of a [***] in a service
area not already covered by another pilot hospital, UHC will provide:

·                  [***]

·                  [***]

·                  [***]

Service Bureau Tasks

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*** Confidential material which has been omitted and filed separately with the
Securities and Exchange Commission.

3

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This project phase involves the tasks for running the data and creation of the
PCS.

Tasks required of Customer before the work in this project phase can take place:

·                  Creation of the data files in the specified layout.

·                  Testing that the following FTP capabilities are working:

·                  UHC provide data extracts to MEDecision

·                  MEDecision provide audit logs to UHC

MEDecision tasks in order to complete this project phase

·                  Identify space required and acquire servers

·                  Receive data

·                  Data Quality review

·                  Implement filters, configuration decisions, and disclaimer
wording

·                  Process data

·                  Load PCS data to PCS server at MEDecision ASP

Training

Project Team Training:

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

·                  [***]

Hospital Staff Training:
MEDecision will be responsible for [***]

iEXCHANGE Web Application System Training:

·                  [***]

Back Office Maintenance Training:

·                  [***]

PCS Train the Trainer:

·                  [***]

·                  [***]

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*** Confidential material which has been omitted and filed separately with the
Securities and Exchange Commission.

4

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Project Assumptions

·                  Software will be operational per provided documentation using
standard table and configuration values.

·                  Software will be installed and supported within one (1)
production and one (1) test environment

·                  Prior to applying any software change to UHC’s production
environment, MEDecision will make a test environment available to UHC with a
copy (or a reasonable subset) of its then-current production database and the
proposed software change(s).  MEDecision will provide UHC with documentation of
the software change(s) including test scripts that UHC can use for acceptance
testing.  MEDecision will not promote any software upgrade to UHC’s production
environment until it has been tested and approved by UHC.

·                  Customer will complete documentation describing workflow
decisions.

·                  Customer resources assigned to the project will have the
requisite knowledge of the customer’s medical management practices and project
goals, with respect to the implementation of the PCS.

·                  Customer trainees will make every reasonable effort to be
fully available for uninterrupted meetings during described training sessions.

·                  Customer training rooms will have internet and telephonic
access (only applicable if training on client site).

·                  The described MEDecision and customer resources will be
assigned to other accounts and projects within the duration of this SOW, so
scheduling of their time must be agreeable to both parties.

·                  MEDecision and Customer reserve the right to determine the
appropriate personnel for this SOW.  This right includes the possibility of
personnel changes during the timeframe outlined within this SOW.  In the event
MEDecision determines that a personnel change must occur, the Customer will be
notified, in writing, thirty (30) days prior to making the change.  MEDecision
will work with the Customer to ensure a smooth transition of personnel.

·                  Prior to the start of the engagement, the Customer will
designate a project manager that will act as a single point of contact for
Customer resource planning, scheduling, status and issue resolution with the
MEDecision project manager.

·                  This SOW does not include any effort, other than estimation
involving the analysis, programming or delivery of custom code.

·                  The Patient Clinical Summaries will only be available through
the Production environment.

Project Completion Criteria

This Project will be deemed complete when:

1)                                      [***]

2)                                      [***]

3)                                      [***]

Out of Scope

·                  Project management tasks, training or support beyond those
described within this SOW.

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*** Confidential material which has been omitted and filed separately with the
Securities and Exchange Commission.

5

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·                  Creation of any custom modules identified during the GAP
Analysis effort.

·                  Creation of any member file translation customizations, if
needed.

·                  Implementation of release updates that occur after the
products are moved into production and customer is live’ on the product.

·                  Onsite testing of implemented code or configurations.

·                  Deliverable of documentation describing customer workflow
decisions other than the configuration documentation described above.

·                  Travel, living or communication expenses (other than for
pilot recruitment purposes).

4.                                       SCHEDULE OF SERVICES

Start Date:  Date this SOW is approved  End Date: When the project completion
criteria are met

MEDecision assumes that the total timeframe of this project will be no longer
than nine (9) months in duration, beginning with the Project Kickoff.  If
additional time is required of the project due to issues related to the
Customer, additional costs will be estimated and presented for approval,
dependent upon the reason for the delay and additional time required.

5.                                       EQUIPMENT, RESOURCES AND PROGRAMMING
PROVIDED BY CUSTOMER

Customer provides required resources to complete the efforts described. 
Includes but not limited to:

·                                          Dedicated project manager to manage
customer tasks as defined,

·                                          Access to legal, provider relations,
and marketing/communications contacts as appropriate.

·                                          Workflow decision makers who can be
dedicated to the project, as the implementation requires,

·                                          Resources to document any new
workflow decisions and/or changes to current workflows,

·                                          Customer understanding that the
ability to do this work concurrently or sequentially directly impacts the
project timeline.

6.                                       PRICING

MEDecision will complete this project for a Fixed Fee of $[***].  This price
includes project management, analysis, configuration, testing, packaging,
documentation and installation.

If the scope of this project changes, a new estimate will be calculated.

In addition, other than [***] recruitment, per the MSA Agreement Customer will
pay actual and reasonable travel and living expenses incurred by MEDecision
personnel in providing the Services described herein.

7.                                       PAYMENT TERMS

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*** Confidential material which has been omitted and filed separately with the
Securities and Exchange Commission.

6

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Fixed Fee Project Invoice Schedule:
[***] of the Total Fixed Fee Project price, which is $[***] shall be invoiced to
Customer upon receiving its signature for this Statement of Work.

[***] of the Total Fixed Fee Project price, which is $[***] shall be invoiced to
Customer when the Project Completion criteria has been met.

In addition, MEDecision will invoice Customer monthly in arrears for expenses
incurred by MEDecision personnel in providing the Services.

Invoices are due on the date of invoice and payable within forty (40) days from
date of invoice receipt by UHC.

Intending to be legally bound, the parties have had this SOW executed by their
duly authorized representatives.

MEDECISION, INC.

 

UNITED HEALTHCARE SERVICES, INC.

 

 

 

By:

/s/ Mary Jo Timlin-Hoag

 

By:

/s/ Dawn Bazarko

 

 

 

Name: Mary Jo Timlin-Hoag

 

Name:

Dawn Bazarko

 

 

 

Title: Senior Vice President, Client Operations

 

Title:

Senior Vice President, Clinical Advancement

 

 

 

Date:

April 16, 2007

 

Date:

April 16, 2007

 

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*** Confidential material which has been omitted and filed separately with the
Securities and Exchange Commission.

7

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Addendum 1
MEDecision Data Extract Specifications v6.xls

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MEDecision Data Extract

Included Members:
[***]

Included claims:
[***]

Included Providers:
[***]

Roll-out plan:
[***]

Extract file structure:
[***]

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*** Confidential material which has been omitted and filed separately with the
Securities and Exchange Commission.

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