For organizations in the long-term care arena, managing costs, and adhering to a dynamic regulatory environment has snowballed into significant headaches for the industry. Reimbursement models in the long-term care industry are constantly shifting, which puts operators in the difficult position of trying to adjust operational models to remain profitable while also adhering to quality of care requirements. In addition, the highly competitive nature of the industry and costly, associated pharmacy spend is a challenge for operators. Deciphering useful data from a pharmacy bill is an exercise in frustration. Without technology, it is nearly impossible to identify errors and opportunities to improve efficiencies.
For context, drug prices and databases change daily, and without that information in real-time, operators don’t know if the price their pharmacy charges them on a given day is accurate. Enter SRX. Founded by a diverse group of individuals with a range of expertise and backgrounds in post-acute care, the company enables long-term care organizations to make informed decisions by simplifying the incredible amounts of data and information associated with facility pharmacy spend. The use of data and technology results in significant cost savings, improved efficiencies, and maximum rebates, which, for some facilities equates to millions of dollars. “We saw an opportunity to bend the cost curve in this area by developing a technology capable of analyzing all areas of pharmacy spend and automating as much as possible,” says Scott Taylor, the CEO of SRX.
“The experience and strength of our team make it possible to create and innovate a variety of solutions. Technology and automation are just the first steps, and we are rapidly evolving to offer other meaningful solutions for our customers and the industry,” he adds.
At its core, SRX’s solution interacts with and integrates all aspects of LTC pharmacy spend through a single online portal. The company has access to both of the premier drug listing databases, such that its pricing inputs are always updated. They also program terms from facility pharmacy contracts into the solution. This allows SRX to identify line items that violate those terms and request credits from the pharmacy.
They can also build in automated alerts and restrictions such that off-formulary prescriptions cannot be filled. Further capabilities include the ability to analyze line items to identify split-bill opportunities, duplicate orders, OTC usage, and more. With SRX’s technology, clients get the maximum eligible rebates, guaranteed quarterly, and can realize the lowest net cost on pharmacy spend.
What differentiates SRX is its ability to customize a solution for each facility, which comes down to its incredible team of industry experts. When the company partners with a facility, its team helps them fully evaluate all aspects of their pharmacy benefit management from formularies and pharmacy contracts to retroactively analyzing their pharmacy bills to identify discrepancies and receive credits and returns. Regardless of their existing pharmacy contracts, or unique operational model, SRX’s solution can improve efficiencies, save costs, and increase rebate returns. As an example, one of SRX’s clients spent a total of nearly $640,000 on drug costs on over 24,000 claims across their 21 facilities in January 2020. SRX technology analyzes each of those claims and identifies all of the line items that represent an opportunity to recapture dollars in the form of eligible credits, returns, formulary adherence, and rebates. SRX also identifies areas for cost savings and waste management. In aggregate, the reporting SRX provided offered opportunities to effectively lower net cost by 15 percent.
Currently, SRX acts as strategic advisors for many of its clients in negotiating favorable terms with their pharmacy partners and identifying other efficiencies in their clinical and operational processes. “We have developed key relationships with other industry players and are working to form partnerships that provide additional value to our growing customer base, which includes some of the largest operators in the industry,” adds Taylor. “As we move forward, this existing technology platform is just the beginning of where we see SRX heading and what will be able to offer in the future.”