MILTON, ON, June 8 /PRNewswire-FirstCall/ - Systems Xcellence Inc., ("SXC" or the "Company") a leading provider of healthcare information technology solutions throughout the pharmaceutical supply chain, today announced a three-year contract with a leading regional healthcare provider (the "Health Plan") for its InformedRx pharmacy benefit administration services. All figures are in U.S. dollars.
Under 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 S. Glenn, President and CEO of SXC. "InformedRx is now recognized as a leading alternative for healthcare 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 center."
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.
About InformedRx
InformedRx is a broad suite of a la carte pharmacy benefit administrative services that provide a flexible and cost-effective alternative to traditional pharmacy benefit management offerings typically employed by managed care organizations. InformedRx is built around SXC's industry leading pharmacy claims processing system, RxCLAIM(R) and features pricing on a fee-for-service basis. RxCLAIM is a transaction processing system designed to provide instant on-line adjudication of third party prescription drug claims at the point of service, including trouble-free claims management and cost-effective review, as well as payment and billing support and real-time functionality for updating benefit, price, member, provider and drug details.
About Systems Xcellence Inc.
Systems Xcellence (SXC) is headquartered in Milton, Ontario with offices and processing centres in Lombard, Illinois, Warminster, Pennsylvania, Scottsdale, Arizona and Victoria, British Columbia. Through its SXC Health Solutions, Inc subsidiary, SXC is a leading provider of healthcare information technology solutions and services to the U.S. healthcare benefits management industry. The company's product offerings and solutions combine a wide range of software applications, application service provider (ASP) processing services and professional services, designed for many of the largest organizations in the pharmaceutical supply chain, such as pharmacy benefit managers, managed care organizations, independent, chain and mail-order pharmacies and other healthcare intermediaries. SXC can be found on the Internet at www.sxc.com.
This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about the Company's business are more fully discussed in the Company's Annual Information Form.
Systems XcellenceCONTACT: Dave Mason, Investor Relations, The Equicom Group Inc., (416)815-0700 ext. 237, dmason@equicomgroup.com; Irwin Studen, Chief FinancialOfficer, Systems Xcellence Inc., Tel: (905) 876-4741, investors@sxc.com