Profile: SXC Health Solutions Corp. (SXCI.O)

SXC Health Solutions Corp. is a provider of pharmacy benefit management (PBM) services and healthcare IT (HCIT) solutions to the healthcare benefit management industry. The Company’s product offerings and solutions combine a range of PBM software applications, application service provider (ASP) processing and pharmacy benefit management services, and professional services designed for the organizations in the pharmaceutical supply chain, such as pharmacy benefit managers, managed care organizations, self-insured employer groups, retail pharmacy chains, and state and federal government entities. The Company’s PBM services include electronic point-of-sale pharmacy claims management, retail pharmacy network management, mail service pharmacy claims management, specialty pharmacy claims management, Medicare Part D services, benefit design consultation, preferred drug management programs, drug review and analysis, consulting services, data access, and reporting and information analysis.

During the year ended December 31, 2008, the Company completed the acquisition of National Medical Health Card Systems, Inc. (NMHC).The Company owns a mail service pharmacy (Mail Service) and a specialty service pharmacy (Specialty Service or Ascend). In addition, the Company is a national provider of drug benefits to its customers under the federal government’s Medicare Part D program. The Company’s HCIT solutions are available on a license basis with on-going maintenance and support or on a transaction fee basis using an ASP model. The Company’s customers include over 70 managed care organizations, Blue Cross Blue Shield organizations, government agencies, employers and intermediaries such as PBM’s. The Company’s provider customers include over 1,400 independent, regional chain, institutional, and mail-order pharmacies.

PBM Services — informedRx

The Company’s informedRx offering is a range of PBM services that provide an alternative to traditional PBM offerings employed by health plans, government agencies and employers. The Company provides a range of pharmacy spend management solutions and information technology capabilities. Its product offerings and solutions combine a range of PBM software applications, ASP processing services, and professional services designed for many of the largest organizations in the pharmaceutical supply chain, such as pharmacy benefit managers, managed care organizations, self-insured employer groups, retail pharmacy chains, unions, third party health care plan administrators and state and federal government entities.

A range of network options, including supporting existing networks or assisting clients in developing networks that meet specific geographic access requirements, desired price discounts, or other service requirements. The Ascend SpecialtyRx model for specialty therapy medication management uses a trained and specialized clinical staff organized in disease pods and patient-centric, evidence based clinical treatment protocols. During patient enrollment into the Ascend Specialty Medication Therapy Management Program the care team communicates with the patient obtaining a complete medical and pharmacy history and crafts an individualized treatment plan including patient education, counseling and expected therapy outcomes. A communication channel is established with the patient’s physician and other important caregivers or case managers as needed. The Company offers a range of Web services that enables clients to interact with the claims processing system using a standardized protocol in a secure environment. This method of access provides the Company’s clients with the freedom to build products, tools and reports that utilize data throughout their enterprises. Once the raw data is in house, it can be used by the client as appropriate, thus providing flexibility and return on investment. A member Website, RxPORTAL, invites members to learn more about their prescription benefit programs, medication histories, drug information and related industry news. This site can be customized with a client’s logo and name, links to the organization’s Internet home site, and up-to-date news bulletins about the organization.

Technology Products and Services

RxCLAIM is an on-line transaction processing system designed to provide instant on-line adjudication of third-party prescription drug claims at the point of service. RxCLAIM is designed to provide the Company’s customers with automation efficiencies, flexibility and control by facilitating the real-time processing of pharmacy claims and payments against eligibility, plan benefits, formularies, price, drug utilization review, prior authorization and rebates in addition to many other features.

RxMAX is a rebate management system that is designed to assist health plans in managing their relationships with pharmaceutical manufacturers through contract management, record keeping, calculating market share, and creating billing details and summaries. RxTRACK is a data warehouse and analysis system that delivers information to the desktop of health benefit plan providers, facilitating on-line analytical processing.

Integrail Pathfinder PRO is a software application that enables a range of users to understand the impact of healthcare resource allocation and medical decision-making through the incorporation of risk prediction and episode profiling technologies. The application offers users an intuitive system for navigating through data to pinpoint variations in resource utilization and quality of care.

RxPORTAL allows customers to interact with the patients formulary and drug history in a secure environment allowing patients and health plans to access industry tools and up to date information. Zynchros provides a range of on-demand formulary management tools to help payers manage their formulary programs, and to maintain Medicare Part D compliance in their programs. The Retail Pharmacy Management System (RPMS) is designed to save time and eliminate manual calculations for response in a retail pharmacy environment. The HBS Common Profile System offers all the features of the RPMS in addition to the ability to centralize the administration of all stores through a single central processing unit. The HBS Chain-Host System is designed for multi-site pharmacies that have a need to share central database information. In addition, HBS provides pharmacy management systems for institutional and mail-order pharmacies, as well as a range of services ranging from customer support and training, third-party data, hardware and technical support.

RxEXPRESS is a pharmacy practice management application that provides information processing and workflow solutions supporting primarily mail-order, managed care and high volume central fill pharmacies. RxEXPRESS provides pharmacy services, such as patient refill orders, patient compliance and patient profile applications, electronic prescribing and refill authorizations, pharmacy website hosting and interfaces and complete mail service, out-patient pharmacy management inventory control and pricing management. The system also provides workflow control, clinical analysis, third-party payment and administrative services support.