MIAMI, FL -- August 14, 2017 -- InvestorsHub NewsWire --
Progressive Care Inc. (OTC
PINK: RXMD), through its subsidiaries Smart Medical Alliance,
Inc. and PharmCo, LLC, is a South Florida health services
organization and provider of prescription pharmaceuticals,
compounded medications, the sale of anti-retroviral medications,
medication therapy management (MTM), and the supply of prescription
medications to long term care facilities, administration and
practice management, utilization management, quality assurance, EHR
Implementation, billing and coding, health practice risk
management, announces approximately 5.2 million in revenues during
the Second Quarter 2017, a 15% increase over the same quarter in
2016.
The company dispensed a total of 108,000 prescriptions during
the six months ended June 30, 2017, an increase of 5%. Growth
trends were due to expanded marketing efforts, directed
advertising, and increased visibility of PharmCos performance
rating. The Company provides services to nearly 12,000 patients of
diverse demographics across South Florida.
Operating income decreased by $246,000 in 2017 as compared to
2016. Second quarter operating income was negatively impacted by a
variety of factors, such as increases in DIR fees. DIR stands for
direct and indirect remuneration and was initially a term coined by
the Centers for Medicare and Medicaid Services (CMS) related to the
Medicare Part D benefit to address price concessions that would
ultimately impact the gross prescription drug costs of Medicare
Part D plans that were not captured at the point of sale. Today,
DIR fees are effectively PBM clawbacks of reimbursements based on
factors that vary from plan to plan. These fees lack transparency
and are extremely difficult to predict and accrue. DIR fees are
often applied retroactively, which has caused the cost of DIR fees
to be nearly 300% higher than in the first quarter of the year.
Some PBMs may reduce or return DIR Fees based on the performance of
the pharmacy within their network. As of May 2017, the Companys
performance ranks in the 90th percentile based on a 6 month average
between comparative rankings in all PBM networks.
Operating income in the second quarter was also impacted by the
hiring of additional operations personnel associated with the
continued growth and development of the company as well as costs
totaling approximately $145,000 associated with the settlement of a
non-recurring legal action and increased auditing/accounting
fees.
The company is committed to providing shareholders with results
and value driven by continued expansion into new market
territories, concentrated efforts towards developing our adherence
services to medical providers, and enhancement of technological
opportunities, stated S. Parikh Mars, CEO. Progressive Care is
determined to push forward with unmatched capabilities coupled with
innovation as the company continues to evolve across our
enterprise.
About Progressive Care
Progressive Care, Inc. (OTC PINK: RXMD), through its subsidiary
PharmCo, LLC, is a South Florida health services organization and
provider of prescription pharmaceuticals specializing in health
practice risk management, compounded medications, the sale of
anti-retroviral medications and related medication therapy
management, and the supply of prescription medications to long term
care facilities.
Cautionary Statement Regarding Forward Looking Statements
Statements contained herein that are not based upon current or
historical fact are forward-looking in nature and constitute
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Such forward-looking statements reflect the Companys
expectations about its future operating results, performance and
opportunities that involve substantial risks and uncertainties.
These statements include but are not limited to statements
regarding the intended terms of the offering, closing of the
offering and use of any proceeds from the offering. When used
herein, the words anticipate, believe, estimate, upcoming, plan,
target, intend and expect and similar expressions, as they relate
to Progressive Care Inc., its subsidiaries, or its management, are
intended to identify such forward-looking statements. These
forward-looking statements are based on information currently
available to the Company and are subject to a number of risks,
uncertainties, and other factors that could cause the Company's
actual results, performance, prospects, and opportunities to differ
materially from those expressed in, or implied by, these
forward-looking statements.
Contact
Armen Karapetyan
Senior Advisor Business Development
Progressive Care (QB) (USOTC:RXMD)
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