The holy grail in health care at This particular point can be to harness patient data to improve patient care while also cutting costs. When that will comes to tackling pharmacy benefits, the former CEO of Apple says real change has to go beyond just cutting fees.
“To make health care sustainable inside future, the only way to do that will can be to significantly reduce the cost of caring for chronic care patients,” said former Apple chief John Sculley. He at This particular point serves as chairman of privately held start-up RxAdvance, which manages pharmacy benefits for insurers, employers along with state Medicaid programs.
This particular week health insurer Centene took a stake in RxAdvance, for an undisclosed sum. The two will work more closely to coordinate medical along with prescription benefits for Centene’s Medicaid along with Obamacare members with chronic conditions, along with share inside savings.
“RxAdvance’s transparency, disruptive technology, along with unique approach to partnership will help us further improve quality health outcomes for our members along with some other customers,” said Centene CEO Michael Neidorff inside company’s announcement of the deal.
The move follows two blockbuster mergers — CVS Health’s $69 billion deal to acquire health insurer Aetna along with Cigna’s $54 billion for pharmacy benefits firm Express Scripts — that will aim to generate savings by coordinating care, cutting out the middleman costs associated with pharmacy benefit managers (known as PBMs).
“The reality can be that will you can’t take enough costs out of that will to fundamentally change the cost parameters of the PBM market,” said Sculley, noting that will the nation’s largest pharmacy benefit manager Express Scripts has more than 35,000 employees.
“What RxAdvance has built can be the first cloud platform that will literally goes in along with hands off to technology things that will have been done with thousands of people,” by automating much of claims processing he said, allowing them to process prescriptions along with manage benefits that has a fraction of the staff.
“By the time we get to about $20 billion of (annual) revenue — which we think will be inside early 2020s — we’ll only need a couple thousand people,” he said.
Tech giant Amazon’s potential entry into health care has also loomed as a factor in pharmacy supply chain efforts to become more consumer-friendly. Sculley, a veteran of Silicon Valley who has spent years working on health-care technology, says Amazon includes a long road ahead.
“Amazon can be fully technically able to do many things, along with they may well come in to health care, nevertheless the reality can be that will’s going to take several years along with maybe more than that will to learn how to do the things that will are unique to the rules of health care. that will’s a regulated industry. that will’s highly complex,” he said. “I suspect that will if Amazon comes in they may well want to partner with companies that will have already laid the foundations for how to do these things using cloud-computing.”
For at This particular point, Amazon can be on the hunt for an executive to lead its brand new joint venture with Berkshire Hathaway along with J.P. Morgan to take aim at employer health costs along with streamline employee benefits.
“Could we work Amazon, Berkshire along with JP Morgan? I think we could bring a lot to the kind of issues that will they’re trying to solve,” Sculley said.