Express Scripts Earns Incentive Award from Department of Defense for High Beneficiary Satisfaction; Member Satisfaction Exceeded 96% in Latest Survey.Business Editors/Health/Medical Writers ST. LOUIS--(BUSINESS WIRE)--Jan. 21, 2004 Express Scripts, Inc. (Nasdaq:ESRX) announced today that since the March 1, 2003 inception of its 5-year contract with the Department of Defense ("DoD") under the TRICARE Management Activity to provide mail pharmacy services to DoD beneficiaries, the Company has earned $1.5 million in quarterly incentive awards. This includes the most recent award of $1.0 million for exceeding 96 percent beneficiary satisfaction levels for the three months ended November 30, 2003. On a quarterly basis, the DoD randomly surveys their beneficiaries to determine satisfaction levels with the TRICARE Mail Order Pharmacy, for which Express Scripts recently passed the 4 million mark in the number of mail pharmacy prescriptions filled. "We are proud to serve the men and women of our nation's armed forces as we make the use of 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, safer and much more affordable, and are pleased to be recognized for our high service standards," stated Barrett Toan, chairman and chief executive officer. "We built a highly-efficient mail pharmacy in Tempe, Arizona Tempe (pronounced /tɛm.'piː/) is a city in Maricopa County, Arizona, USA, with a population of 169,712 according to 2006 Census Bureau estimates. to support this contract and other mail growth, and the high beneficiary satisfaction scores so soon after implementing the contract reflect the hard work and dedication of employees throughout our organization." As previously announced, Express Scripts was also awarded the contract for the TRICARE Retail Pharmacy (TRRx) program and will provide retail pharmacy services to the approximately 2.5 million DoD beneficiaries who currently utilize the retail pharmacy benefit. Beginning in the second quarter of 2004, Express Scripts will provide access to a retail pharmacy network, prior authorization prior authorization, n See predetermination. prior authorization Health insurance A cost containment measure that provides full payment of health benefits only if the hospitalization or medical treatment has been services, beneficiary communication materials and a call center to handle beneficiary inquiries. "We believe our outstanding performance for this mail contract positions us well in the public sector marketplace," added Toan. Express Scripts, Inc. is one of the largest PBM PBM - play by mail. See play by electronic mail. companies in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. providing PBM services to over 50 million members through facilities in eight states and Canada. Express Scripts serves thousands of client groups, including managed care organizations, insurance carriers, third-party administrators, government-sponsored benefit plans, employers, and union-sponsored benefit plans. Express Scripts provides integrated PBM services, including network pharmacy claims processing, mail pharmacy services, benefit design consultation, drug utilization review drug utilization review Health insurance A study of drug prescriptions to evaluate appropriateness and cost-effectiveness of drug therapy , formulary formulary /for·mu·lary/ (for´mu-lar?e) a collection of recipes, formulas, and prescriptions. National Formulary see under N. for·mu·lar·y n. management, disease management, medical and drug data analysis services, and medical information management services. The Company also provides distribution services for specialty pharmaceuticals. Express Scripts is headquartered in St. Louis, Missouri. More information can be found at http://www.express-scripts.com, which includes expanded investor information and resources. 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. STATEMENT This press release contains 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. , including, but not limited to, statements related to the Company's plans, objectives, expectations (financial and otherwise) or intentions. Actual results may differ significantly from those projected or suggested in any forward-looking statements. Factors that may impact these forward-looking statements include but are not limited to: -- risks associated with our pending acquisition of CuraScript, including integration risks and costs, risks of client retention, and risks associated with the operations of the acquired business -- risks associated with our ability to maintain our historic growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. , or to control operating or capital costs -- continued pressure on margins resulting from client demands for lower prices, enhanced service Enhanced service is service offered over commercial carrier transmission facilities used in interstate communications, that employs computer processing applications that act on the format, content, code, protocol, or similar aspects of the subscriber's transmitted information; offerings and/or higher service levels, and the possible termination of, or unfavorable modification to, contracts with key clients or providers -- competition and continuing consolidation in the PBM industry, and our ability to consummate contract negotiations with prospective clients, as well as competition from new competitors offering services that may in whole or in part replace services that we now provide to our customers -- risks associated with adverse economic conditions, which may result in lower membership growth in existing clients or in lower rates of utilization of prescription drugs -- adverse results in regulatory matters, the adoption of new legislation or regulations, more aggressive enforcement of existing legislation or regulations, or a change in the interpretation of existing legislation or regulations (including, without limitation, the Compliance Guidance for Pharmaceutical Manufacturers issued by the Office of Inspector General of Health and Human Services Noun 1. Health and Human Services - the United States federal department that administers all federal programs dealing with health and welfare; created in 1979 Department of Health and Human Services, HHS relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Federal Medicare/Medicaid Anti-Kickback Statute). -- risks associated with the operations of acquired businesses, including integration risks and costs, risks of client retention and repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing of client contracts -- increased compliance risks relating to our contracts with the Department of Defense TRICARE Plan and various state governments -- risks arising from investigations of certain PBM practices and pharmaceutical pricing, marketing and distribution practices currently being conducted by the U.S. Attorney offices in Philadelphia and Boston, the Attorney General of the State of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , and other regulatory agencies regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. -- the possible loss, or adverse modification of the terms, of relationships with pharmaceutical manufacturers, or changes in pricing, discount or other practices of pharmaceutical manufacturers -- adverse results in litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , including a number of purported pur·port·ed adj. Assumed to be such; supposed: the purported author of the story. pur·port  ed·ly adv.
class action cases challenging aspects of our business practices -- risks associated with the use and protection of the intellectual property we use in our business -- risks associated with our leverage and debt service obligations, including the effect of certain covenants in our borrowing agreements -- risks associated with our ability to continue to develop new products, services and delivery channels -- general developments in the health care industry, including the impact of increases in health care costs, changes in drug utilization and cost patterns, introductions of new drugs and conversion of prescription drugs to non-prescription (or over-the-counter) status -- uncertainties regarding the implementation and the ultimate terms of proposed government initiatives, including a Medicare prescription drug benefit -- increase in credit risk relative to our clients due to adverse economic trends -- risks associated with our inability to attract and retain qualified personnel -- other risks described from time to time in our filings with the SEC We do not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. |
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