Emerging Washington State Health Care Model Secures $7.5 Million in Venture Capital

Emerging Washington State Health Care Model Secures $7.5 Million in Venture
Capital
Qliance Medical Management Closes Financing Round from Second Avenue Partners,
New Atlantic Ventures, and Clear Fir Partners

SEATTLE, July 7 /PRNewswire/ -- Qliance Medical Management Inc., which
operates insurance-free direct primary care clinics -- also known as "direct
medical homes" -- in Washington State, today announced it has closed a $4
million funding round from three institutional venture capital firms, led by
Second Avenue Partners with participation by New Atlantic Ventures and Clear
Fir Partners, bringing its total capital raised to approximately $7.5 million.
The company plans to use the proceeds to add new clinics for its medical
practice partner, Qliance Medical Group of Washington PC., operating under the
Qliance(R) brand.

"We see the Qliance direct primary care model as an important transformational
option to health care reform that is easily scalable for other communities
across the U.S.," said Nick Hanauer, managing partner of Second Avenue
Partners, based in Seattle. "Their innovative health care model reduces costs
dramatically for individuals and businesses while delivering exceptional care
and access for patients."

In lieu of insurance and co-pays, Qliance patients pay monthly membership fees
covering all direct care, ranging between $39 and $79, depending on their age.
In exchange, Qliance patients get unrestricted primary and preventive care
for everyday things like vaccinations, checkups, pneumonia, minor fractures,
routine women's health exams, and ongoing care for chronic illnesses such as
diabetes, hypertension or obesity. Hospital in-patient rounds can also be
included for a slightly higher monthly membership fee. Other benefits of
Qliance direct primary care include:

-- No limits for pre-existing conditions
-- Unhurried 30- to 60-minute office visits
-- Same- or next-day appointments for urgent care needs
-- Open 7 days per week, with 24 hour cell phone and email access to a
physician
-- On-site x-ray, laboratory and "first-fill" prescription drug
dispensary

In those rare circumstances when outside specialist care or hospitalization is
required, Qliance physicians and nurse practitioners serve as a patient's
"medical home," operating as the central coordination point for all other care
and services. To cover the costs of any necessary outside care, most Qliance
members choose a low-premium insurance plan for unpredictable serious and
catastrophic illnesses, such as trauma sustained in a serious car accident or
cancer. Qliance direct primary care provides a comprehensive health care
coverage solution when bundled with a "wrap-around" insurance plan, and can
typically save patients between 40 and 50 percent and employers between 20 and
35 percent on health care costs.

"The Qliance direct primary care model begins to fix what is broken with
health care in America," said John Backus, managing partner of New Atlantic
Ventures, based in Reston, Virginia. "With direct primary care like Qliance,
it is possible to do what many in Congress think is impossible - to extend
quality health care to more Americans while actually reducing cost for all."

"Most people don't realize that insurance is simply not needed for 90 percent
of the reasons people go to a doctor today. By operating without the hassles
of insurance reimbursement overhead, Qliance providers can reduce costs for
patients and employers and focus on what we were trained to do - practice
medicine and heal," said Dr. Garrison Bliss, co-founder and chief medical
officer of Qliance Medical Management and a 30-year internal medicine
physician who left insurance behind in 1997 and created the first broadly
affordable direct primary care model in the nation. "We're gratified Second
Avenue Partners, New Atlantic Ventures and Clear Fir Partners share our vision
to transform health care and expand the direct primary care model to more
communities."

Qliance currently has one clinic in downtown Seattle and will be opening its
second in Kent, Wash. in August. A third is planned around the end of this
year. The company is currently in discussions with several large groups to
extend its model to other parts of the country.

Qliance Medical Management Inc. was founded in 2006, evolving from Dr. Bliss'
private practice, with seed investment from Second Avenue Partners, Clear Fir
Partners, and other private investors. In 2007, the Washington State
legislature recognized direct primary care as an innovative health care
delivery model not to be regulated as insurance, paving the way for all
Washingtonians to access and afford quality health care.

For more information about Qliance, visit www.Qliance.com.

About Qliance Medical Management
Qliance Medical Management was founded in 2006 and provides operating and
management services to Qliance Medical Group of Washington PC. Qliance direct
primary care offers people of all ages and incomes unrestricted access to all
types of primary, preventive and chronic illness care for one monthly
membership fee, ranging between $39 and $79, depending on age. Qliance does
not exclude anyone for pre-existing conditions and offers unhurried same- and
next-day appointments 7-days per week. Through Qliance, patients and
employers are getting exceptional care and saving between 20 and 50 percent on
comprehensive health care costs when bundled with wrap-around insurance.
Qliance and its direct primary care model, which was pioneered by co-founder
Dr. Garrison Bliss in 1997, is backed by Second Avenue Partners and Clear Fir
Partners LP in Seattle and New Atlantic Ventures in Reston, Va. and Cambridge,
Mass. For more information, visit www.Qliance.com.

About Second Avenue Partners
Second Avenue Partners is a Seattle-based provider of management, strategy,
and capital for early stage companies. Second Avenue Partners' investment
approach is to make early-stage investments in promising ventures which
exhibit transformative business models in their respective industries. It
builds long-term relationships, actively assisting its portfolio companies in
becoming market leaders. Second Avenue Partners has funded companies such as
aQuantive (acquired by Microsoft), HouseValues (NASDAQ: SOLD, now known as
Market Leader); Insitu (acquired by Boeing); Azaleos; Ice Energy, Qliance
Medical Management; Fantasy Moguls; Newsvine; Coolspotters; Realself; and
Rubicon. For more information, visit www.secondave.com.

About New Atlantic Ventures
New Atlantic Ventures is a leading early-stage venture capital firm targeting
investments in technology companies in emerging mass markets. Through its
offices in Cambridge, MA and Reston, VA, NAV targets companies in the Eastern
United States, while also pursuing select opportunities nationwide. The NAV
portfolio includes investments in Pontiflex, Stitcher, GateRocket,
Mpowerplayer, TVU Networks, Koofers, Secure Command, FashionPlaytes and
Qliance Medical Management. For more information, visit www.navfund.com

About Clear Fir Partners LP
Clear Fir Partners LP is a private, early-stage limited partnership, based in
Seattle, with a history of early-stage investments in small and growing
companies in emerging markets. Its portfolio includes InfoSpace (NASDAQ:
INSP), Audience Science (formerly Revenue Science), Insitu, MInfo, Qliance
Medical Management, Pet Holdings, Inc., and Lydian Trust, and Petra Growth
Funds I & II.

SOURCE Qliance Medical Management Inc.

Dawn Lyon, +1-415-846-4706, or Laura Lowery, +1-206-799-5604, both for Qliance
Medical Management Inc., Pr[at]qliance[dot]com