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Systems Xcellence wins $2.8-million (U.S.) contract
2005-06-08 08:17 ET - News Release
Mr. Irwin Studen reports
SYSTEMS XCELLENCE ANNOUNCES THREE-YEAR USD$2.8 MILLION INFORMEDRX CONTRACT
Systems Xcellence Inc. (SXC) has obtained a three-year contract with a leading regional health care provider (the Health Plan) for its InformedRx pharmacy benefit administration services. All figures are in United States dollars.
Under the terms of the agreement, the Health Plan will outsource the management of its prescription drug claims processing to SXC. The company will be compensated on a per-transaction basis, helping to contribute to the growth of its transaction-processing business and its related base of recurring revenue. The contract has a value of approximately $2.8-million, and is expected to go live during the third quarter of 2005.
"This is an important contract for SXC, one that delivers some geographical diversification, but more importantly will continue to accelerate the growth of activity in our transaction-processing business," said Gordon Glenn, president and chief executive officer of SXC. "InformedRx is now recognized as a leading alternative for health care organizations looking to outsource the management of their prescription drug benefit programs. The number of prescriptions written and processed in the U.S. continues to climb and is expected to increase further beginning in 2006 when the Medicare Part D program is launched. This program is expected to provide prescription drug coverage for more than 20 million Americans who currently have none, and we look to leverage our capabilities with InformedRx in order to drive some of this additional business through our processing centre."
SXC will be responsible for processing prescription drug claims initiated by the Health Plan's members, warehousing collected data for informational analysis, managing the Health Plan's rebate agreements with pharmaceutical manufacturers, establishing a Web portal to extend its point-of-contact with its members and providing the pharmacy network for the Health Plan to extend its coverage nationally.