Hi, Belper. Good day to you! There's a lot of i
Post# of 1525
Posted On: 02/16/2016 11:53:21 AM
Hi, Belper. Good day to you!
There's a lot of info out there if you Google 340B, but here's how it applies to Progressive Care / PharmCo (RXMD).
PharmCo does some groundwork to qualify - logistically and otherwise - to be a 340B contractor for hospitals or similar entities. Once qualified, a pharmacy enters into a contract with hospitals and other entities. This has a way of locking in automatic revenue and also brings new customers/patients that PharmCo can wrap their arms around and capture more/all of the prescription fills and other services needed by these new customers. Also a benefit for higher customer retention, both the individuals and the hospital or health organization(s) for which the pharmacy is contracted.
PharmCo currently has a 340B contract with one organization, Empower U: http://www.euchc.org/
This is just one of many advances that Progressive Care / PharmCo has made over the past year+ to strengthen the business and business model and all the while increasing the barriers to entry from competition. Of course, there has been so much accomplished over several years prior, but so much more active in the past year as new management has knocked off milestone after milestone to solidify the business foundation (debt eliminated from balance sheet, etc.) and business model. And now it appears that all resources have been freed from those earlier activities and deployed 100% on expansion and growth of the business, organically and through M&A.
What is 340B:
The 340B Drug Discount Program is a U.S federal government program created in 1992 that requires drug manufacturers to provide outpatient drugs to eligible health care organizations/covered entities at significantly reduced prices.
There's a lot of info out there if you Google 340B, but here's how it applies to Progressive Care / PharmCo (RXMD).
PharmCo does some groundwork to qualify - logistically and otherwise - to be a 340B contractor for hospitals or similar entities. Once qualified, a pharmacy enters into a contract with hospitals and other entities. This has a way of locking in automatic revenue and also brings new customers/patients that PharmCo can wrap their arms around and capture more/all of the prescription fills and other services needed by these new customers. Also a benefit for higher customer retention, both the individuals and the hospital or health organization(s) for which the pharmacy is contracted.
PharmCo currently has a 340B contract with one organization, Empower U: http://www.euchc.org/
This is just one of many advances that Progressive Care / PharmCo has made over the past year+ to strengthen the business and business model and all the while increasing the barriers to entry from competition. Of course, there has been so much accomplished over several years prior, but so much more active in the past year as new management has knocked off milestone after milestone to solidify the business foundation (debt eliminated from balance sheet, etc.) and business model. And now it appears that all resources have been freed from those earlier activities and deployed 100% on expansion and growth of the business, organically and through M&A.
What is 340B:
The 340B Drug Discount Program is a U.S federal government program created in 1992 that requires drug manufacturers to provide outpatient drugs to eligible health care organizations/covered entities at significantly reduced prices.
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