The Silicon Review
“When we set out to create a comprehensive solution for automating and simplifying pharmacy management, one of the acute issues we wanted to address was improving transparency and allowing the technology to deliver guaranteed rebate amounts on time.”
SRX is a powerful technology solution that enables skilled nursing and long-term care (LTC) facilities to realize the lowest net cost on pharmacy spend. The technology SRX provides automates examination of monthly pharmacy bills to identify cost savings and opportunities for waste management and capture and submit all eligible rebates, which are guaranteed to be paid quarterly.
SRX expert advisors work with skilled nursing and LTC facilities to establish formularies that
create rules that govern prescriptions with real-time alerts. Powerful reconciliation and reporting tools identify discrepancies that result in credits, rebates, and data that can be used to improve efficiencies. These tools also allow the company to provide the greatest number of, and best rebates in the industry.
SRX was established in 2015 and is based in Valley Stream, NY.
Scott Taylor, SRX CEO, spoke exclusively to The Silicon Review. Below is an excerpt.
Q. What are the challenges addressed by SRX?
SRX was established by a group of founders with broad experience in the long-term care (LTC) and pharmaceutical industries. In looking at the many challenges facing LTC, skyrocketing drug costs stood out as an area of opportunity. Managing drug costs and relationships with pharmacies is rife with complexity. From pharmacy contracts to drug pricing databases, electronic health/medical records (EHRs/EMRs), rebates, and more, there are many considerations that impact the lowest net cost on pharmacy spend. These challenges presented a unique opportunity to integrate technology into the auditing and relationship management process to simplify processes, decrease costs, and provide greater insight and transparency. As we have seen the significant impact of this technology and watched our customer base grow, we are now able to look at other areas of opportunity where technology can increase efficiencies and reduce costs for operators.
Q. How do your solutions align with the existing medical practice?
Historically, the auditing of pharmacy bills was done manually. Depending on the facility and operator’s size, this could mean looking at tens of thousands of line items to check for accuracy, potential credits/returns, and discrepancies. Without technology to automate this review process, too many opportunities for cost savings and control fall through the cracks. Transparency in the pharmacy relationship, where many moving pieces and drug prices can fluctuate daily, is a moving target. Our automated technology can integrate with any existing LTC pharmacy relationship. Suppose partner pharmacies aren’t able or willing to integrate technology directly. In that case, we have backend reconciliation and reporting tools that allow our customers to have the information they need to hold pharmacies to contract rates and terms successfully. Our solution also includes tools to help customers leverage existing manufacturer drug rebates, so they maximize the dollars that are available from these programs.
Q. You need experts and extreme dedication to develop flawless medical/pharma technology. How did you manage to form your dream team?
We have been fortunate to have built a team comprised of experienced and dedicated professionals with broad backgrounds in LTC, pharmacy, healthcare, sales, analytics, and IT. The breadth of this experience is what has largely driven our success. That said, as a health tech company, our solutions rely heavily on the expertise of our incredible developers and IT support. Since our founding, they have been with us and have created a comprehensive, responsive, and user-friendly solution for our LTC partners. At our core, our team members are truly dedicated to this industry and our mission of creating innovative technology solutions that cut costs, increase efficiencies and solve some of the industry’s most pressing needs.
Q. How do you manage to deal with the ever-changing dynamics of healthcare and pharmacy needs?
Healthcare is an industry heavily impacted by legislative and regulatory processes in our country. With the recent change in administration, we are reminded of the many ways in which these changes can impact not only the industry but also our business model at SRX. Remaining flexible and adaptable to these shifts is critical to our continued success. It’s no secret how much COVID-19 has impacted the LTC industry. From the heavy toll on residents and their families to the increased burden and costs on operators for personal protective equipment (PPE), these changes have created an incredible challenge for operators. As partners, not just a solution provider, we have to view any shifts in policy or difficulties presented as opportunities to innovate new technologies and solutions for these pressing challenges responsively. During the height of the pandemic, for instance, the legislation instituted communication regulations that required operators to regularly update families on the status of COVID spread in their facilities. Because of our expertise and adaptable IT team, we developed an SMS-based communication tool for our customers that allowed them to satisfy these requirements and better communicate in real-time with patients, families, and employees.
Q. How do you market your services?
We have put a lot of investment over the years into building out our network and establishing ourselves as thought leaders in the industry. We want to be seen not only as a solution provider but as a true partner to our customers. Four years ago, we determined that there was a need for real, substantive content and education for executives and owners in the industry. We pooled our collective expertise and founded the ‘Synergy Summit’ which is an exclusive, c-level event that brings together some of the largest operators, and most relevant speakers in an environment that allows for true connection, networking, and education. This annual event allows us to gather our existing customers, invite other operators and thought leaders with whom we can continue to build out our network and expand our customer base.
We are also very fortunate to have a dedicated sales team with significant industry relationships and experience who have exponentially grown our network as well as strategic partnerships which have been key to our continued success. To date, we have successfully distributed more than $50 million in manufacturer rebates alone, and the cost savings opportunities we have identified for our customers exceed $100 million to date. This wouldn’t have been possible without our incredible sales team and industry partners.
Q. Trust is a difficult attribute to measure and a delicate dynamic to maintain. How do you maintain this with your clients?
When we set out to create a comprehensive solution for automating and simplifying pharmacy management, one of the acute issues we wanted to address was improving transparency and allowing the technology to deliver guaranteed rebate amounts on time. Trust is at the foundation of our solution. Our technology audits each and every line item on a pharmacy bill and provides insight into every expense. It allows operators to recoup credits owed to them by their pharmacy partners and better control what represents for second-largest cost center for most facilities. As I mentioned earlier, our partnership approach means that we are truly vested in our customers’ success. When COVID hit, we looked for every opportunity to support our customers, including sourcing PPE, developing communication technologies, writing public letters of support, and partnering with the American Health Care Association (AHCA) primary lobbying organization for long-term care. Trust is earned by delivering on promises, and at every step, we aim to provide solutions and partnerships that build this industry up.
Q. COVID has turned pharmacy spending of each and every individual upside-down. What are the measures undertaken by SRX to sustain these testing times?
As pharmacy spend is the second largest cost center outside labor for most operators, controlling these costs is one key area where facilities can improve their bottom lines. With the financial impacts that COVID has had on LTC, controlling costs where possible has never been more critical. We have been proud to continue to provide a solution that truly benefits the customers we serve. Our technology can identify an average of 11 percent in cost savings opportunities on drug spend. Combined with additional rebate dollars that can run anywhere from tens of thousands to millions of dollars annually, depending on the size and patient mix of operators, these are significant dollars for any facility. In an environment where every penny counts, our solution has made a real impact on our customers.
Q. What does the future hold for SRX and its customers? Are exciting things on the way?
We are always thinking about what’s next. On some level, I believe that is the nature of technology—innovating solutions for relevant problems continually. That’s another benefit to staying close to our customers and other leaders in the industry; we know what’s most pressing at any given moment and anticipate challenges. We are currently working on several initiatives, including further building out our communication tool that allows for real-time communication between facilities and their patients, families, and employees through text and email and tools to help facilities maximize reimbursement under their Managed Care contracts.
The Leader at the Helm of SRX
Scott Taylor, CEO at SRX, 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. Before 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.