| | March 202019UTLOOK Healthcare Tech On the formulary management side, SRX helps clients to not only choose the right mix of recommended drugs, but it also works to establish rules that hold pharmacies accountable for the drugs they are able to dispense (and thereby the associated costs). By establishing rules such as limits on dosage, defining when to use over-the-counter alternatives, or sticking to the determined formulary, SRX is able to not only improve the bottom line for clients, it also adds transparency to their pharmacy relationships. An example of how SRX works with clients involved a nursing home operator that wanted SRX’s assistance in defining their formulary to reduce pharmacy spend. SRX integrated its platform with the operator’s existing electronic health records (EHR) system, PointClickCare, and worked with the operator’s pharmacy partners to properly adjudicate records on a daily basis. By utilizing SRX’s tools for automating and analysing data, the nursing home operator has reduced their net pharmacy costs by about 12 percent. Last year, the operator received over $950,000 in manufacturer rebates as a result of working with SRX. “In total, from all the components of our program, they are looking at an improved net effect between 15 and 20 percent,” extols Taylor.The next key area that the technology addresses is reconciliation and reporting. The SRX platform integrates facility electronic health records with comprehensive drug databases, and combines powerful analytics to generate reports that offer insight into pharmacy bills, including identification of duplicate orders, and opportunities for split billing, returns, and credits. Automation also allows technology to sift through what are often thousands of line items to ensure that all eligible rebates are identified and submitted. This third pillar – rebates – is often the most visibly appealing for operators who can receive tens, if not hundreds of thousands of dollars in rebate checks each year. SRX also prides itself on guaranteeing quarterly rebate checks to customers. Taylor explains, “Just knowing they can count on those checks showing up each quarter means they can more accurately budget resources to other areas of operations that improve customer satisfaction and increase revenue.” Looking ForwardFor Taylor and his fellow founders, the impact SRX has made for their clients in the market has inspired the company to look for other ways to create efficiencies and add value for operators by applying SRX’s collective experience and insight into the industry. “Few operators have access to the resources and expertise we have been able to gather and organize under the SRX umbrella. Our deep knowledge of industry best practices, challenges, and obstacles uniquely positions us to innovate improvements within the industry,” Taylor added. When asked what opportunities stand out most, Taylor commented, “In an industry this large, there will always be areas where economies of scale can be applied to realizing additional cost efficiencies. Employee benefits and mail-order pharmacy solutions are two areas we are working on that stand to benefit our clients and the market. By leveraging the connections we have made through our technology platform, along with our expertise and network of partners in post-acute care, we are confident we will be able to continue adding to the services we offer.”With a broad network of care providers and growing customer base at SRX’s disposal, pooling resources to offer group pricing for employee benefits or developing other operational processes seems like a logical next step. They are currently working on implementing their first employee benefits PBM to a 5,000+ life group, with launch anticipated in Q2 of 2020. The solution has effectively guaranteed a $1 million savings in connection with the health plan. Regardless of where this new venture takes them, SRX has already made great strides in improving the bottom line for industry operators. “We are committed to being the leader who asks, ‘what’s next’, and then having the resources, expertise, and will to make it happen” concludes Taylor. HT$388,000$685,440$1,088,6409 Large Home Operator42 Home Operator17 Home Operator /Large Medicare Part A MixRebate ReturnsActual examples of SRXclient annual rebates:
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