LISLE, IL, July 7 /PRNewswire-FirstCall/ - SXC Health Solutions Corp. ("SXC" or the "Company") (NASDAQ: SXCI, TSX: SXC), a leading provider of technology and pharmacy benefit management (PBM) services, announces that its informedRx PBM unit has been awarded an 18-month contract, with an option for one additional year, to provide PBM services to Presbyterian Health Plan, a health maintenance organization (HMO) based in Albuquerque, NM with an annual drug spend of approximately $150 million. The start date of the new agreement is July 1, 2009.
Presbyterian is currently an ASP client of SXC's, utilizing the Company's RxCLAIM adjudication technology. Under terms of the new agreement, Presbyterian will receive a custom portfolio of informedRx's PBM services including network management, formulary management using Zynchros formulary services, and advanced clinical tools and services, all backed by SXC's industry-leading PBM technology.
"We are pleased to add to the momentum of our growing informedRx unit and to expand our relationship with a premier client such as Presbyterian," said Mark Thierer, President and CEO of SXC. "As a long-standing ASP client, Presbyterian's conversion to informedRx is a major endorsement of the flexibility in our business model and highlights our evolution as the technology-enabled PBM. We were able to offer Presbyterian a custom solution that will enable them to enhance their member service and cost effectiveness while still providing them with direct control over certain components of their pharmacy benefits program. We believe our ability to do this is unique in our industry."
"Prescription drugs represent an ever increasing percentage of the overall expenses within our health plans," said Larry Georgopoulos, Director of Pharmacy Services at Presbyterian Health Plan. "We wanted to leverage informedRx's pharmacy network management, benefit administration, and clinical tool capabilities so that we could increase the focus of internal resources on utilization management and quality initiatives. InformedRx gives us maximum flexibility by allowing us to design and control unique drug benefit programs under our own banner, while outsourcing the administrative, operational, and financial functions to SXC. This will save us money and allow us to focus our resources on achieving our primary goal - the continuous enhancement of patient care within our health plans."
About Presbyterian Health Plan
Presbyterian Health Plan serves more than 450,000 New Mexicans, and is part of the Presbyterian Healthcare Services family. Presbyterian Healthcare Services was founded in New Mexico in 1908, and is the state's only private, not-for-profit healthcare system. As New Mexico's largest provider of healthcare, Presbyterian includes seven hospitals, the state's largest health plan, a strong and growing medical group. Presbyterian employs more than 9,000 people throughout New Mexico who serve to improve the health of individuals, families and communities.
About SXC Health Solutions Corp.
SXC Health Solutions Corp. is a leading provider of pharmacy benefit management (PBM) services and Healthcare Information Technology (HCIT) solutions to the healthcare benefits management industry. The Company's product offerings and solutions combine a wide range of advanced PBM services, software applications, application service provider (ASP) processing services, and professional services. SXC serves many of the largest organizations in the pharmaceutical supply chain, such as health plans; employers; Federal, provincial, and state governments; pharmacy benefit managers; and retail pharmacy chains. SXC is headquartered in Lisle, Illinois with multiple locations in North America. Learn more at www.sxc.com.
Certain statements included herein, including those that express management's expectations or estimates of our future performance, constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. We caution that such forward-looking statements involve known and unknown risks, uncertainties and other risks that may cause our actual financial results, performance, or achievements to be materially different from our estimated future results, performance or achievements expressed or implied by those forward-looking statements. Numerous factors could cause actual results to differ materially from those in the forward-looking statements, including without limitation, our ability to achieve increased market acceptance for our product offerings and penetrate new markets; consolidation in the healthcare industry; the existence of undetected errors or similar problems in our software products; our ability to identify and complete acquisitions, manage our growth and integrate acquisitions; our ability to compete successfully; potential liability for the use of incorrect or incomplete data; the length of the sales cycle for our healthcare software solutions; interruption of our operations due to outside sources; our dependence on key customers; maintaining our intellectual property rights and litigation involving intellectual property rights; our ability to obtain, use or successfully integrate third-party licensed technology; compliance with existing laws, regulations and industry initiatives and future change in laws or regulations in the healthcare industry; breach of our security by third parties; our dependence on the expertise of our key personnel; our access to sufficient capital to fund our future requirements; and potential write-offs of goodwill or other intangible assets. This list is not exhaustive of the factors that may affect any of our forward-looking statements. Other factors that should be considered are discussed from time to time in SXC's filings with the U.S. Securities and Exchange Commission, including the risks and uncertainties discussed under that captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2008 Annual Report on Form 10-K and subsequent Form 10-Qs, which are available at www.sec.gov. Investors are cautioned not to put undue reliance on forward-looking statements. All subsequent written and oral forward-looking statements attributable to SXC or persons acting on our behalf are expressly qualified in their entirety by this notice. We disclaim any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.
Certain of the assumptions made in preparing forward-looking information and management's expectations include: maintenance of our existing customers and contracts, our ability to market our products successfully to anticipated customers, the impact of increasing competition, the growth of prescription drug utilization rates at predicted levels, the retention of our key personnel, our customers continuing to process transactions at historical levels, that our systems will not be interrupted for any significant period of time, that our products will perform free of major errors, our ability to obtain financing on acceptable terms and that there will be no significant changes in the regulation of our business.
|SOURCE SXC Health Solutions Corp.|
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