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COMMONWEALTH SAVES $415,000 ON STATE EMPLOYEE HEALTHCARE COSTS; NEW PHARMACY PROVIDES 200 LOCAL JOBS

 BOSTON, Feb. 9 /PRNewswire/ -- Officials met today at the recently opened National Rx Services, Inc. (NRx) mailservice pharmacy in Wilmington, Mass. to present the Commonwealth of Massachusetts Group Insurance Commission (GIC) with a rebate check for $415,310.64. The funds represent cost savings to the GIC state employee health benefit plan resulting from the mailservice drug benefit provided by NRx and Citizens Medical Corporation of Boston. Citizens Medical Chairman Michael Kennedy and NRx Vice President Paul Denning jointly presented the check to GIC Executive Director Dolores Mitchell at a ceremony prior to touring the pharmacy facilities.
 The rebate was generated over a 12-month period, primarily through an inflation protection component contained in the state's contract with NRx and through the use of cost-effective brand drugs. The Group Insurance Commission, and its 72,000 health plan members not in HMOs, first signed with National Rx Services, Inc. in December, 1987 and was instrumental in getting a mailservice pharmacy located in Massachusetts.
 GIC Executive Director Dolores Mitchell said, "We're very pleased that our willingness to try something new in 1987, that has since been adopted by other cost-conscious groups, has provided savings to both the Commonwealth and its plan participants. The savings generated by this contract demonstrates the GIC's ability to keep up with the times in its cost containment efforts."
 Citizens Medical, a subsidiary of the non-profit Citizens Energy Corporation, was a joint venture partner with NRx's parent company, Medco Containment Services, Inc. of New Jersey, from 1986 to 1990 and continues to serve as a marketing arm for the mailservice company. Said Michael Kennedy, "We hear so much about government spending and the need for cuts. Yet here in Massachusetts, we have a branch of the state government aggressively working to keep costs down and provide improved benefits to the people it serves. Back in 1987, Dolores Mitchell and the Group Insurance Commission were among the first health benefit providers in New England to realize that the skyrocketing prescription drug costs could be contained through mailservice pharmaceuticals. Citizens is happy to build on its relationship with the GIC and to continue to make one of life's necessities more affordable and available to the people of New England."
 National Rx Services, Inc. of Massachusetts is a subsidiary of Medco Containment Services, Inc., the nation's largest provider of prescription drug programs to employers and other insurers. The company dispenses more than 500,000 prescriptions a week through its 11 mailservice pharmacies and processes more than 900,000 prescriptions a week through a network of more than 55,000 retail pharmacies for participants of medical benefit plans funded by employers, insurance companies and government and retiree groups. The Wilmington facility, which currently employs over 200 pharmacists, pharmacy technicians, data entry, customer service and inventory control personnel, opened in June, 1992 and is expected to eventually provide 350-400 jobs to the local community with a payroll of $13 million.
 "Medco's decision to locate its 11th mailservice pharmacy in the Commonwealth of Massachusetts has, indeed been a 'win-win' situation for the company in the Commonwealth," said NRx's Paul Denning. "We now have Massachusetts employees serving Massachusetts citizens for their prescription drug needs in a high quality and cost effective manner. The success of this 'partnership' with GIC has undoubtedly helped to establish our presence in the New England area, and we hope to grow together in the years ahead."
 -0- 2/9/93
 /CONTACT: Jean Fleischman of Citizens Medical Corporation, 617-338-6300/


CO: Citizens Medical Corporation ST: Massachusetts IN: MTC SU:

CH -- NE016 -- 4717 02/09/93 13:30 EST
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Publication:PR Newswire
Date:Feb 9, 1993
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