The Silicon Review
Pharmacy spend is now one of the fastest growing parts of healthcare spending, particularly for long-term care operators. For operators, it is a business imperative to manage these costs. Profits can be greatly impacted by incorrect billing or failure to capture available rebate dollars, which can leave operators in a position where they have to look for new strategies to stem the tide of increasing costs. Rising drug prices, combined with other costs, leave operators feeling more pressure than ever before to reduce costs while still ensuring patient safety. SRX is a technology and advisory company that serves the long-term care (LTC) and skilled nursing industry by helping operators and facilities manage their pharmacy spend. SRX was co-founded by Scott Taylor, CEO, along with a group of other individuals with significant experience in post-acute and long-term care, insurance, pharmaceuticals, healthcare, and finance. The company, founded in 2015, has seen incredible growth—derived mainly from the enormous demand for increased insight into this aspect of facility operations, which typically represents the largest cost center for facilities aside from labor.
With their wealth of experience in various sectors of long-term care, company founders were looking to identify recurring themes and pressing issues for LTC operators. The complexity involved in managing pharmacy spend presented a unique opportunity to use automation and technology to streamline and simplify this process. The sheer amount of data involved—claims, pricing, electronic health records (EHRs), contract information, formulary parameters, and regulatory considerations—make it nearly impossible for facilitiess to have adequate insight into their pharmacy bill if they are still relying on manual processes. Automation provides operators the information and data needed to reduce waste, affect behavior, improve efficiencies, and lower costs. SRX’s proprietary technology was developed to solve these issues and provide the industry with the tools needed to realize the effective lowest net cost on pharmacy spend.
With technology automating and analyzing all of the data, SRX is able to provide LTC operators with greater control. Taylor explains, “Without knowing how much you are spending, or having the data you need to effectively work with your pharmacy partner, there’s no way for a facility to make knowledgeable decisions that improve spend. Our technology ensures that claims are accurate and in line with expectations based on pharmacy contracts. You don’t know what you don’t know. Our technology changes that. Our clients know.” For example, operators have formularies that determine which drugs their facilities are allowed to dispense. It is also possible to determine the quantities/sizing of the prescriptions and to require their partner pharmacy to adhere to these predefined rules. Some pharmacies are able to adjudicate claims at the point-of-sale to ensure these rules are followed. When that isn’t possible, however, which is still more common than not for many operators, SRX technology is able to perform a drug utilization review (DUR) of all claims during a month and provide a report that can be used in working with the pharmacy to ensure adherence to those rules.
Rebates are another very important aspect of effective pharmacy management that SRX addresses. By automating the monthly review process of all claims, SRX is able to identify and submit all eligible rebates and guarantee the timely distribution of rebate checks back to its clients. These rebate dollars are a critical component of realizing the lowest net cost. “Obviously, getting a check for hundreds of thousands of dollars each quarter is an easy sell. Even for more technology-forward organizations, the rebate submission process is cumbersome. With our technology, we are able to look at every claim, including IVs or compounded drugs where we can pull out claims that wouldn’t otherwise be identified on the surface, and make sure that those rebate dollars end up back in our client facilities,” explains Taylor.
SRX is more than a technology company; its founders and team members serve as consultants and advisors as well. Taylor makes a point to emphasize how important this knowledge base is, not only for clients but for continued growth and innovation within the company. “I haven’t come across an operator who had all the expertise you would need to effectively manage pharmacy spend. It’s just too complicated. That’s all we do, and we have many experts within SRX. Yes, the technology stands on its own, but our people add value in many other ways, including advising on developing contracts with pharmacy partners, helping clients develop their formularies, and effectively communicating and negotiating with existing pharmacy partners. Our clients rely on us as partners that drive real value and insight into their pharmacy management process.”
An example of this is what happens when SRX is first engages with a client. They are able to run past claims’ statements through its technology to identify all the areas that present opportunities for improvement. This includes providing a report of pharmacy overcharges or errors in pricing. SRX works with clients to effectively communicate these overcharges to the pharmacy, which typically results in immediate credits, and often amount to tens of thousands of dollars on the low end.
While the company has successfully built an impressive client base, including many of the top operators in the country, the SRX leadership team is committed to continuing to not only grow its client base but also expand the services it is able to offer the industry. As their client base and associated industry partners have grown, so has their awareness of the many other opportunities that exist for innovation in the space. From apps and vaccine programs to mail order pharmacy solutions and logistics, the company has already been able to successfully branch out into other areas.
Taylor believes that the strength of its leadership team is the key to company’s success. “SRX technology solutions are just the beginning. Collectively we have been around this industry for years, and we have now built a network of experts and companies that are really leading change in the industry. Operators are busy operating. Their focus should continue to be on differentiating themselves with the level of service they offer patients while remaining profitable. We can continue looking for ways to help them do that more efficiently while innovating new solutions that affect real change.”
Meet the leader at the helm of SRX
Scott Taylor is a Founding Principal and CEO at SRX. Scott is an investor and entrepreneur and has also worked to build and grow a number of other healthcare-related businesses, including co-founding a portable diagnostic company serving the post-acute market, and operating and investing in a pharmacy benefit management business. Prior to his involvement in the healthcare industry, Scott was an accomplished executive in the financial services industry. He holds an AB degree in economics from Harvard University.