AdvancePCS Renews Multiyear Contract With Health Net Inc.; Agreement Covers 5.3 Million Members.Business Editors/Health/Medical Writers IRVING, Texas--(BUSINESS WIRE)--Sept. 5, 2003 AdvancePCS (Nasdaq: ADVP), the nation's leading health improvement company, today announced it has signed a renewal agreement to provide pharmacy claims processing services to the approximately 5.3 million members of Health Net Inc. The California-based company provides health benefits to members in 15 states. Under terms of the three-year contract, which is effective April 1, 2004, AdvancePCS will provide claims processing services to Health Net members via its superior information technology linked to more than 58,000 chain and independent pharmacies An independent pharmacy is a retail pharmacy that is not directly affiliated with any chain pharmacy, such as CVS/pharmacy, Walgreens or Eckerd. However, owners of independent pharmacies will often form alliances with other independents and use their power in numbers to bargain for throughout the nation. This system processes at the point of sale more than 500 million retail and mail order prescriptions annually. AdvancePCS' proprietary system continuously works to ensure the safety of plan members by alerting pharmacists to potentially harmful or deadly prescribing situations. "AdvancePCS is pleased to be continuing a relationship with Health Net that spans several years," said David D. Halbert, AdvancePCS chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We look forward to working closely with Health Net to process pharmacy claims and provide services that can help prevent adverse drug events for consumers." AdvancePCS also notes that upon renewal, as of April 1, 2004, in light of certain modifications to the agreement, AdvancePCS will no longer "gross up" revenues (i.e., include drug spend in revenues) on its income statement with respect to this particular client. This change will reduce revenues and cost of revenues by an equal amount, of approximately $1.3 billion, starting in fiscal 2005. This revenue recognition change will not have any impact on the company's reported gross profit; selling, general and administrative expenses; or net income. About Health Net Inc. Health Net Inc. (NYSE NYSE See: New York Stock Exchange :HNT HNT Hostage Negotiation Team ) is one of the nation's largest publicly traded managed health care companies. Its mission is to help people be healthy, secure and comfortable. The company's HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, , insured PPO PPO abbr. preferred provider organization PPO Managed care Preferred provider organization, see there Infectious disease Pleuropneumonia-like organism, see there and government contracts subsidiaries provide health benefits to approximately 5.3 million individuals in 15 states through group, individual, Medicare, Medicaid and TRICARE programs. Health Net's subsidiaries also offer managed health care products related to behavioral health Behavioral health was first used in the 1980's to name the combination of the fields mental health and substance abuse. As an example, an organization serving both mental health and substance abuse clients might refer to its practice as behavioral health or , dental, vision and prescription drugs prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, , and offer managed health care product coordination for multiregion employers and administrative services for medical groups and self-funded benefits programs. For more information on Health Net Inc., please visit the company's Web site at www.health.net. About AdvancePCS AdvancePCS (www.advancepcs.com) is the nation's largest independent provider of health improvement services. AdvancePCS offers health plans a wide range of health improvement products and services designed to improve the quality of care delivered to health plan members and manage costs. The company's capabilities include integrated mail service and retail pharmacy networks, innovative clinical services, customized disease management programs, specialty pharmacy, outcomes research, information management, prescription drug services for the uninsured and online health information for consumers. AdvancePCS clients include Blue Cross and Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. organizations, insurance companies and HMOs, Fortune 500 employers, Taft-Hartley groups, third-party administrators, state and local governments, and other health plan sponsors. AdvancePCS is ranked by Fortune magazine as one of America's 100 fastest-growing public companies and is included on the Forbes Platinum 400 list of best big companies. AdvancePCS earned the No. 3 spot on the Barron's 500 list of best performing companies. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Any statements included in this press release that are not historical facts and that concern predictions of economic performance and management's plans and objectives constitute forward-looking statements under the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provision of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. We do not undertake any obligation to provide updates to such forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, changes in the health care industry or the economy in general, competition, acquisitions, changes in the legislative or regulatory environment, and other factors detailed in AdvancePCS' Securities and Exchange Commission filings. |
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