LISLE, IL, June 23 /PRNewswire-FirstCall/ - SXC Health Solutions, Corp.("SXC" or the "Company") (NASDAQ: SXCI, TSX: SXC), a leading provider oftechnology and pharmacy benefits management services, announces that itsHealthCare Information Technology (HCIT) Group has been awarded a three-year$35 million Pharmacy Benefits Manager (PBM) contract with the State ofTennessee's, Bureau of TennCare ("TennCare").
Under terms of the proposed agreement, SXC will administer TennCare'spharmacy claims system, an online system that processes all Medicaid pharmacytransactions. SXC will also help administer TennCare's Preferred Drug List,manage their pharmacy network, provide pharmacists with weekly payments fortheir services, and generate weekly encounter data and reconciliation servicesfor TennCare.
"We are very pleased to establish a relationship with TennCare and to bepart of their efforts to deliver a high quality and cost effective healthcareexperience to their plan recipients," said Mark Thierer, President and COO ofSXC. "We continue to expand our footprint in the public sector where ourfee-for-service business model, point-of-sale pharmacy claims adjudication andrebate systems, and Medicaid domain expertise is ideally suited to deliver theflexibility and transparency that State Medicaid agencies and other publicsector organizations require."
"The contract resulting from this RFP process represents another stepforward in appropriately aligning the incentives in our program," saidTennCare Pharmacy Director David Beshara. "SXC has the tools, technology andexpertise that will give us the ability to develop unique benefit programs,and to manage program costs without compromising our high service standards."
The base contract is for three years with an expected launch date ofOctober 1, 2008, and includes two one-year extension options. Through its $650million annual pharmacy program, TennCare fills about one million claims amonth.
TennCare is Tennessee's managed-care Medicaid program servingapproximately 1.2 million low-income children, pregnant women and disabledTennesseans, with an annual budget of $7 billion.
About SXC Health Solutions
SXC Health Solutions, Corp. (SXC) is a leading provider of pharmacybenefits management (PBM) services and HealthCare IT (HCIT) solutions to thehealthcare benefits management industry. The Company's HCIT Group is dedicatedto supporting the PBM industry with a broad range of technology, tools andservices including a wide range of software applications, application serviceprovider (ASP) processing services and professional services. SXC's customersinclude the largest organizations in the pharmaceutical supply chain, such asFederal, provincial, and state and local governments, PBMs, managed careorganizations, institutional pharmacies, and other healthcare intermediaries.SXC is headquartered in Lisle, Illinois with 13 locations in the US andCanada. For more information please visit www.sxc.com.
SOURCE SXC Health Solutions Inc.