Another MIDDLEMAN in the healthcare system -sucking off money

Here is a article that appeared today in

San Francisco Chronicle

has anyone ever heard of these two companies

SXC Health Solutions Corp. &  Catalyst Health Solutions Inc.

From the article… here is the description of what the company does

Founded as Systems Xcellence in 1993, SXC negotiates with drugmakers for lower prescription medicine prices on behalf of health insurers, Medicare and Medicaid plans, workers’ compensation programs and long-term care facilities.

How many middlemen does the healthcare system have… that few knows about….  whose goal is to divert monies to treat patients to a avenue to generate profits?

Does anyone see a reason why drug prices have increased dramatically over the last TWO DECADES?

As I remember.. 1993 was around the time that the Pharma’s were sued for having up to NINE TIERS of pricing… depending on what part of the Pharmacy industry you were in… back then it was reported that Hospital was the lowest acquisition costs and retail had the highest… the Pharma’s lost that lawsuit and millions of dollars were doled out to those that were harmed by that policy – mostly to the retail/community part of pharmacy…

Is this company the REPLACEMENT for that system… and if you notice that LONG TERM CARE is included in this special pricing/rebate pricing structure…


2 Responses

  1. […] How many more middlemen are there in the mix of the PBM industry… each with their own overhead and trying to extract a profit as well… […]

  2. […] recently a company that negotiates the rebates (kick-backs) from the Pharma for the PBM’s came to light. It was also recently reported that certain Pharma’s have paid the PBM’s >50% rebate […]

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