PHARMACIES GET CASH FOR HEALTHCARE CLAIMS 'OVERNIGHT'
ATLANTA, June 30 /PRNewswire/ -- The Pharmacy Fund, Inc. (PFI) and National Data Corporation (NASDAQ: NDTA) (NDC) have announced the creation of RAPID RxEMIT(SM), the first comprehensive "overnight" electronic payment service created exclusively for pharmacists. The new service is scheduled to debut this fall. PFI, with financial support of $500 million from Smith Barney, will buy all approved adjudicated third party receivables from pharmacies at a competitive discount rate -- via the NDC Network. PFI will transparently capture each transaction, upon approval by the payer/obligator in the on-line prescription adjudication process. Electronic payment will then be sent to the pharmacy's bank by PFI within 24 hours, eliminating the pharmacists' burden of chasing payments and reconciliation while increasing their profits and cash flow. RAPID RxEMIT won't require pharmacists to make any changes to their existing computer systems. The service is available exclusively through NDC's network which has access to more than 48,000 pharmacies nationwide and switches more than $20 billion in third party claims annually. NDC also is connected to virtually every major real-time processor/payer in the industry and is ideally positioned to provide professional services to all RAPID RxEMIT client pharmacies. "Our goal is to help the pharmacist succeed in today's tough economic environment," said Richard Cohan, senior vice president of NDC's Healthcare Division. "RAPID RxEMIT revolutionizes the traditional process of receiving payment on third party claims. It makes the pharmacist's job much easier by lowering the costs of collecting receivables, chasing errors and lost claims. "By enhancing the pharmacy's cash flow, RAPID RxEMIT ultimately helps pharmacists support their business needs -- and that translates into increased profits," said Cohan. "It further adds to our commitment to bring a wide range of value-added products and services from National Data to the healthcare industry." Of the estimated $40 billion in annual prescription expenditures, almost half are obligations of third party insurers/payers. Currently, 66 percent of the estimated 600 million annual prescription transactions covered by heath insurance are processed on-line. Increased third party claims are continuing to shift the cash flow burden from the patient/claimant to the pharmacy. "Any pharmacist with an on-line computer and portfolio of third party claims is eligible for the RAPID RxEMIT program," said Jeffrey Greene, president of PFI and former chairman of Citicorp Information Management Services. "We'll examine each portfolio separately to determine the discount rate to be charged." RAPID RxEMIT also benefits third party administrators and payers involved in the adjudication process. With the service they'll send only one EDI payment and statement for a large number of payees, instead of thousands of paper checks and statements -- saving on administrative costs and help desk inquiry time. The average pharmacy now pays almost $1.00 in transmission, reconciliation and write-off expenses for each third party prescription. With RAPID RxEMIT, the charge to the average pharmacy is approximately 48 cents -- a savings of 52 percent. "Thousands of pharmacists check their mail every day, hoping to find checks from third party payers," stated Fred B. Tarter, chairman of PFI. "Through RAPID RxEMIT, they'll know with certainty that they'll have their funds the very next day." National Data Corporation is a leading provider of value-added application systems and information services for the healthcare, retail and government/corporate markets. -0- 6/30/93 /CONTACT: Jan McClure of National Data Corp., 404-728-2363; Jeff Greene of The Pharmacy Fund, Inc., 212-557-5600, or Richard Cohan of National Data Corp., 404-728-2477/ (NDTA)
CO: National Data Corporation; The Pharmacy Fund, Inc. ST: Georgia IN: CPR HEA SU: PDT
RA-JB -- AT011 -- 7270 06/30/93 15:13 EDT
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|Date:||Jun 30, 1993|
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