Comprehensive Care Corporation Signs Agreement With A National Leader In Pharmacy Benefit Management Prepares to Launch Blasters, Drillers & Miners Union, Local No. 29
TAMPA, Fla., July 30, 2013 /PRNewswire/ -- Comprehensive Care Corporation (OTC BB: CHCR), ("CompCare" or the "Company"), a leading behavioral health, substance abuse and pharmacy management provider for employers, Taft-Hartley health and welfare funds, managed care companies, third party administrators, and union–sponsored benefit plans, today announced the signing of an agreement with one of the nation's leading pharmacy benefit managers ("PBM"). The signing of this agreement completes the structure needed by CompCare to initiate the national launch of its Pharmacy Value Management Program ("PVM Program"). The PVM Program, constructed by CompCare over the last two years, is designed to save clients approximately 10% or more on their annual pharmacy spend by providing them with a pharmacy management price that is 10% less than their prior year's spend – fully secured by a performance bond.
Ramon Martinez, President of CompCare Pharmacy Solutions, Inc., said, "CompCare has placed all of the major components in the right order and is moving ahead with the initiation of the PVM Program. We believe that we will use our innovative Fourth Party Pharmacy Value Network (4PVNTM) to change and improve the delivery of pharmacy benefit management while providing greater value and helping our clients decrease their costs in pharmacy spending."
In January of this year, CompCare announced the signing of its agreement with a leading, national surety bond provider giving CompCare the ability to "…back its new 'at-risk' Pharmacy Cost-Savings Program with fully guaranteed performance bonds." (See CompCare's release of January 8, 2013.) In March of this year, CompCare announced the signing of an agreement with Blasters, Drillers & Miners Union, Local No. 29, Laborers' International Union of North America (LIUNA), which agreement provided, in part, for CompCare to make its PVM Program available to Local 29 and guarantee "…Local 29 a minimum of a 10% savings and backed up its guarantee with a full performance bond issued by a nationally well-known and respected surety company." (See CompCare's release of March 19, 2013.) In May of this year, CompCare announced the signing of a pharmacy management savings agreement with Utica City School District. The agreement provides, in part, for CompCare to make its PVM Program available to Utica City School District and "…guarantee them a savings of at least 10% over their current pharmacy expense." (See CompCare's release of May 13, 2013.)
In June of this year, the Company announced that under the leadership of Lt. Colonel Ramon Martinez (USAF, Ret.), President of CompCare Pharmacy Solutions, Inc. (a wholly-owned subsidiary of the Company), CompCare had successfully retained the services of core salespeople "…needed to head up national sales force to sell our PVM Program." (See CompCare's release of June 10, 2013.) The Company currently has on retainer the services of three full-time salespeople and five additional commission-only salespeople located throughout the U.S. and Puerto Rico whose sole product is the PVM Program. The target markets of the PVM Program range from self-insured employer groups to Taft-Hartley health and welfare funds, as well as managed care companies.
Simultaneously with the above activities, the Company continued to actively engage in discussions and negotiations with various PBM's in order to broaden its capabilities to provide its clients with the promised savings. As a 4PVNTM service provider, CompCare orchestrates and contracts for the delivery to the Participating Groups of agreed upon services, a complex network of "best of breed" PBM service providers.
CompCare believes that the signing of its latest PBM Agreement completes the development of its 4PVNTM, positioning CompCare to offer its clients, and potential clients, the right PBM to service the client's membership through CompCare and make possible the guaranteed savings.
As a result of the signing of this agreement, the implementation procedure needed to initiate Local 29's new pharmacy program by year end has already commenced. The Company anticipates commencing implementation of similar union and/or municipality programs during Q3 and Q4 of this year.
The U.S. pharmacy benefit market has an annual prescription drug spend of approximately $325 billion. Management believes that given the uniqueness of its program, the quality of its sales force and its ability to attract clients by guaranteeing its performance at substantial savings off their prior year's drug spend, it will be able to penetrate a reasonable segment of the overall market within the next 24 months.
About Comprehensive Care Corporation
Established in 1969, CompCare provides behavioral health, substance abuse and pharmacy management services for employers, Taft-Hartley health and welfare Funds, managed care companies, third party administrators, and union–sponsored benefit plans throughout the United States. Headquartered in Tampa, Florida, CompCare focuses on personalized attention, flexibility, a commitment to high-quality services and innovative approaches that address both the specific needs of clients and changing healthcare industry demands. For more information, please call 813-288-4808 or visit our website at www.compcare.com
Except for statements of historical fact, the matters discussed in this press release are forward looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond CompCare's control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, the impact that the sales and business development team will have on the acceptance and adoption of CompCare's service offerings; the ability of CompCare to launch its pharmacy value management program for Local 29 in September 2013 and for Utica City School District shortly thereafter; the ability of CompCare to maximize its market share with new pharmacy initiatives, the ability of CompCare's new pharmacy cost-savings program to guarantee a 10% or more reduction in pharmacy costs, the ability of CompCare's pharmacy program to promote greater medication adherence without restricting access to needed medications, the ability of CompCare's pharmacy cost-savings program to change and improve the delivery of pharmacy benefit management, CompCare's ability to provide superior patient care while increasing its business and margins as a result of implementing its pharmacy cost-savings program, the ability to obtain a performance bond on satisfactory terms, the ability of CompCare and its staff to successfully execute its business plan, the ability of CompCare to offer and sell any of its products at a profit, changes in local, regional, and national economic and political conditions, the effect of governmental regulation, competitive market conditions, varying trends in member pharmacy utilization, our ability to manage healthcare operating expenses, our ability to achieve expected results from new business, the profitability, if any, from capitated pharmacy contracts or other products, increases or variations in cost of care, seasonality, CompCare's ability to obtain additional financing, and additional risk factors as discussed in the reports filed by the company with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Any forward- looking statement in this release speaks only as of the date on which it is made. CompCare assumes no obligation to update or revise any forward-looking statements.
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SOURCE Comprehensive Care Corporation