So the purchase of MSC Pharmacy Services by Express Scripts will be finalized within a few weeks; what’s next?
It is way too early to tell, as the announcement hit the street just last Friday. That said, from discussions with sources from both Express and MSC Pharmacy Services it is clear that some heavy thinking has been going on for some time.
(Note I’m using MSC Pharmacy Services as that is the entity that was purchased by ESI; the other part of legacy company MSC remains ‘behind’ and will keep the MSC brand identity)
There’s the usual corporate-PR speak in the companies’ press releases, but folks involved in the discussions point to a few areas that bear watching. First out of the gate is MSC’s Oasis web portal. Their web app enables customers to access information in summary and drill down format, create reports, and keep track of specific claimants. ESI’s customers may be moved onto Oasis as systems integration efforts progress; this will not be an overnight move as it will require back- and front-end integration with customer, clinical, and processor applications.
MSC Pharmacy Services currently uses processor Restat as their network administrator; I’d expect to see the combined company move quickly onto Express’ platform and use Express’ network contracts. This would reduce MSC’s admin expense and likely improve rebate income as well.
Expect to see some consolidation of clinical programs; neither legacy company has a complete suite of services and the combined offering will almost certainly be stronger than each firm’s solo effort.
Something that has not been discussed, but has been alluded to in public statements is the possibility of cross selling ESI/MSC’s core offerings to their respective customers. This would entail ESI helping MSC sell DME, home health, imaging, etc to their customers and MSC cross selling PBM services to ESI’s customers.
Finally, while it is likely there will be a few folks looking for employment elsewhere, those decisions have not been finalized. MSC Pharmacy Services’ executive management is solid and well-regarded, as is ESI’s. I’d expect the headhunters are already circling…
Jun
16
