Regence Rx and Catalyst Health Solutions Announce Pharmacy Benefit Management Agreement Through 2017
March 19 2012 - 8:42PM
Business Wire
Regence Rx, Inc. and Catalyst Health Solutions, Inc., (NASDAQ:
CHSI) today announced an agreement that establishes Catalyst Rx as
the exclusive provider of pharmacy benefit management (PBM)
services for Regence Rx. The agreement is expected to be effective
May 1, 2012 and the initial term runs through December 31, 2017
with a four-year optional extension. Through this agreement,
Regence Rx will carve out its operational functions, and transfer
related people, technology, and internal client service assets to
Catalyst for them to manage and operate. Regence Rx will continue
to provide clinical and contracting support to its customers.
Catalyst Rx is a full-service PBM that serves more than 18
million lives in the United States and Puerto Rico. This agreement
will allow Regence Rx to leverage the scale and expertise of
Catalyst Rx, one of the country’s fastest growing PBMs, and its
national provider network as the two organizations partner to
deliver more efficient pharmacy benefit programs and better
clinical outcomes for clients and individuals throughout the
Pacific Northwest and Intermountain State Regions. Regence Rx
currently provides PBM services for more than 1.2 million members
of Regence Health Plans and provides related services to over 7.7
million members from other Blue Cross and Blue Shield and Medicaid
plans.
“We are excited about the opportunity to partner with Regence Rx
to deliver PBM services to their clients and members,” said
Catalyst Health Solutions President and Chief Operating Officer
Rick Bates. “Through this collaboration, Catalyst will work with
Regence Rx to establish a pharmacy Center of Excellence in the
Northwest that will help us serve an even greater number of
employers, individuals and communities throughout the region.”
“By joining forces, our companies will be able to fulfill our
mutual goal of supporting an economically sustainable health care
system,” said President of Direct Health Solutions for Cambia
Health Solutions, Inc., John W. Morgan. “Additionally, as we
leverage Catalyst’s national provider network and contracting
capabilities, investments in product development, and expanded
sales and marketing resources, Regence Rx will be in a position to
improve our efficiency, deliver enhanced service to our clients and
leverage new opportunities to grow our business.”
Under the terms of the agreement, Catalyst will retain Regence
Rx staff and provide Regence Rx with a full complement of PBM
services, including: claims adjudication, member services, network
administration, rebate contracting, mail and specialty drug
management, data reporting and analytics, as well as client service
and sales support.
Christopher Price of Broad Creek Partners, LLC was the strategic
advisor to Regence Rx.
About Catalyst Health Solutions, Inc.
(www.chsi.com):
Catalyst Health Solutions, Inc., the fastest growing national
PBM in the U.S., is built on strong, innovative principles in the
management of prescription drug benefits and provides an unbiased,
client-centered philosophy resulting in industry-leading client
retention rates. The Company's subsidiaries include Catalyst Rx, a
full-service pharmacy benefit manager (PBM) serving more than 18
million lives in the United States and Puerto Rico; HospiScript
Services, LLC, one of the largest providers of PBM services to the
hospice industry; FutureScripts, LLC, a full-service PBM serving
approximately one million lives in the mid-Atlantic region; and a
fully integrated prescription mail service facility. The Company's
clients include self-insured employers, including state and local
governments, managed care organizations, unions, hospices,
third-party administrators and individuals.
About Regence Rx, Inc.
The mission of Regence Rx is to ensure that members have
affordable coverage for prescription medications. The company is
distinguished by its focus on clinical evidence to build its
formulary, and its focus on lowest net costs has helped reduce the
cost of prescription medications for Regence Rx and their members.
Regence Rx currently provides PBM services for more than 1.2
million members of Regence Health Plans. In addition, over 7.7
million members from other Blue Cross and Blue Shield and Medicaid
plans trust Regence Rx to provide clinical and contracting support.
Regence Rx, Inc. is part of the Cambia Health Solutions family of
companies.
Forward-Looking Statements
This press release may contain "forward-looking statements" as
defined in the Private Securities Litigation Reform Act of 1995.
These statements involve a number of risks and uncertainties that
might materially affect our results, particularly those risks
referred to in our Annual Report on Form 10-K for the year ended
December 31, 2011, under "Item 1A. Risk Factors." Readers are urged
to carefully review and consider the various disclosures made in
our Annual Report on Form 10-K, our Forms 10-Q, and our other
filings with the Securities and Exchange Commission that attempt to
advise interested parties of the risks and uncertainties that may
affect our business. Catalyst Health Solutions, Inc. does not
undertake any obligation to update forward-looking statements,
whether as a result of new information, future events, or other
developments.
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