SXC Health Solutions
Encyclopedia
SXC Health Solutions is a Lisle
, Illinois
based pharmacy benefit management company that sells services related to pharmacy benefit management
and medical record keeping
to businesses in the United States. Working independently of the government and insurance companies allows it to operate as a third party verifier; the RxCLAIM online claim processing system allows for prescription drug claims to be processed online. SXC has three separate but interrelated business segments which deal with prescription drug programs.
Most of the company's growth came in 2008 when it doubled in size; Between 2005 and 2010 revenue increased 3,400%. As a Canadian startup, the company received venture capital
subsidies
from the Canadian government
in addition to private investments. These subsidies allowed the business to grow initially and establish its business model in advance of its initial public offering
, which was offered through the NASDAQ
exchange in 2009. The success of the mixed public and private approach in SXC's case has been called "perhaps the best example of the flexibility and the value added by the Canadian hybrid system."
in 1995 when it joined the TSX. Six years later, in 2001, it acquired ComCoTec, an Illinois-based software business. After going public on the NASDAQ
stock market in 2006, the company shifted its headquarters from Milton, Ontario
to Chicago, the city ComCoTec was based in. SXC was one of the first the first companies to build technology used in pharmacy benefit management.
Eight months after the company changed its name to SXC Health Solutions, in February 2008 it acquired National Medical Health Card Systems, Inc. (NMHC) for US$
143 million in a move that doubled its size and workforce. It is now known as InformedRx, a division of SXC. On December 19, 2008, the company also acquired Zynchros, an eight-year-old Seattle-based formulary management business.
SXC purchased private company Medfusion, Inc on December 2, 2010 for $100 million. Reasons for the acquisition include an interest in strengthening SXC's position in the speciality pharmacy market and improving cost cutting capabilities in the management of complex conditions and improving supportive care. MedfusionRx provides voice messaging services to people in all 50 US states as well as other clinical services to over 9000 patients. The messages have to do with medical treatment assistance including the delivery and refill reminders of medication and patient monitoring for people with chronic diseases. It was founded in 2003 in Birmingham, Alabama. Medfusion manages $270 million in drug spending.
InformedRx is SXC Health Solution's pharmacy benefit management service. It deals with formulary administration, benefit plan design and management, pharmacy network management, drug utilization review, clinical services and consulting, reporting and information analysis, mail services and specialty pharmacy, and consumer web services.
Healthcare IT Group focuses on the technological aspects of the company. It includes the RxCLAIM, RxTRACK, and RxPORTAL customer interfaces, which support the electronic processing of prescriptions. It also includes pharmacy technology services (technology relied upon by application service provider
s), as well as Zynchros, a provider of formulary management tools.
Health Business Systems are management systems providers to retail, institutional or nursing home, and mail order pharmacy environments.
, TennCare
, the University of Michigan
, and the Boston Medical Center HealthNet Plan
.
Lisle
Lisle is a type of cotton fabric that has been processed to give it a smooth finish. The process burns off lint and threads as well as fibre ends, leaving a smooth edge...
, Illinois
Illinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...
based pharmacy benefit management company that sells services related to pharmacy benefit management
Pharmacy Benefit Management
In the United States, a Pharmacy Benefit Manager is a third party administrator of prescription drug programs. They are primarily responsible for processing and paying prescription drug claims. They also are responsible for developing and maintaining the formulary, contracting with pharmacies,...
and medical record keeping
Health informatics
.Health informatics is a discipline at the intersection of information science, computer science, and health care...
to businesses in the United States. Working independently of the government and insurance companies allows it to operate as a third party verifier; the RxCLAIM online claim processing system allows for prescription drug claims to be processed online. SXC has three separate but interrelated business segments which deal with prescription drug programs.
Most of the company's growth came in 2008 when it doubled in size; Between 2005 and 2010 revenue increased 3,400%. As a Canadian startup, the company received venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
subsidies
Subsidy
A subsidy is an assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it to hire more labor A subsidy (also...
from the Canadian government
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
in addition to private investments. These subsidies allowed the business to grow initially and establish its business model in advance of its initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
, which was offered through the NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
exchange in 2009. The success of the mixed public and private approach in SXC's case has been called "perhaps the best example of the flexibility and the value added by the Canadian hybrid system."
History
Systems Xellence (SXC), founded in 1993, was a Canadian company that first went publicInitial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
in 1995 when it joined the TSX. Six years later, in 2001, it acquired ComCoTec, an Illinois-based software business. After going public on the NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
stock market in 2006, the company shifted its headquarters from Milton, Ontario
Milton, Ontario
Milton is a town in Southern Ontario, Canada, and part of the Halton Region in the Greater Toronto Area. Milton received a tremendous amount of awareness following the release of the results of the 2006 Census, which indicated that Milton is the fastest growing municipality in the Greater Golden...
to Chicago, the city ComCoTec was based in. SXC was one of the first the first companies to build technology used in pharmacy benefit management.
Eight months after the company changed its name to SXC Health Solutions, in February 2008 it acquired National Medical Health Card Systems, Inc. (NMHC) for US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
143 million in a move that doubled its size and workforce. It is now known as InformedRx, a division of SXC. On December 19, 2008, the company also acquired Zynchros, an eight-year-old Seattle-based formulary management business.
SXC purchased private company Medfusion, Inc on December 2, 2010 for $100 million. Reasons for the acquisition include an interest in strengthening SXC's position in the speciality pharmacy market and improving cost cutting capabilities in the management of complex conditions and improving supportive care. MedfusionRx provides voice messaging services to people in all 50 US states as well as other clinical services to over 9000 patients. The messages have to do with medical treatment assistance including the delivery and refill reminders of medication and patient monitoring for people with chronic diseases. It was founded in 2003 in Birmingham, Alabama. Medfusion manages $270 million in drug spending.
Business segments
SXC has three main business segments: InformedRx, Healthcare IT Group (HCIT), and Health Business Systems.InformedRx is SXC Health Solution's pharmacy benefit management service. It deals with formulary administration, benefit plan design and management, pharmacy network management, drug utilization review, clinical services and consulting, reporting and information analysis, mail services and specialty pharmacy, and consumer web services.
Healthcare IT Group focuses on the technological aspects of the company. It includes the RxCLAIM, RxTRACK, and RxPORTAL customer interfaces, which support the electronic processing of prescriptions. It also includes pharmacy technology services (technology relied upon by application service provider
Application service provider
An application service provider is a business that provides computer-based services to customers over a network. Software offered using an ASP model is also sometimes called On-demand software or software as a service ....
s), as well as Zynchros, a provider of formulary management tools.
Health Business Systems are management systems providers to retail, institutional or nursing home, and mail order pharmacy environments.
Customers
SXC Health Solutions has been used by various organizations, including HealthSpring, PharMericaPharMerica
PharMerica is a publicly-traded Fortune 1000 company formed in January 2007 from the merger of Kindred Healthcare's pharmacy business with a subsidiary of AmerisourceBergen...
, TennCare
TennCare
TennCare is the U.S. state of Tennessee’s health care insurance program. It is designed to expand health insurance to the uninsured through the state’s Medicaid program by utilizing managed care to reduce the costs of health care...
, the University of Michigan
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
, and the Boston Medical Center HealthNet Plan
Boston Medical Center HealthNet Plan
is a health maintenance organization located in Massachusetts. Founded in 1997 by Boston Medical Center, the Plan manages healthcare coverage for Massachusetts residents participating in MassHealth , and Commonwealth Care -- subsidized health insurance programs for low-income individuals...
.