Coram Healthcare Formulates E-Commerce Strategy; Plans to Bring its Mail Order Pharmacy On-Line
DENVER, March 29 /PRNewswire/ -- Coram Healthcare (NYSE: CRH) today announced its Internet strategy, which includes plans to sell prescription medications, over-the-counter products, vitamins and supplements as well as other healthcare-related products on-line through its Coram Prescription Services (CPS) subsidiary.
Coram currently serves approximately 260,000 patients per month through its operating subsidiaries. CPS currently provides mail order pharmacy and prescription benefit management services nationwide from a state-of-the-art facility in Orlando, Fla. CPS has annualized revenue of $70 million and approximately 1,000 managed care contracts with payers nationwide. The Internet strategy will allow for the rapid expansion of services to Coram's patient and payer base and for services to new Internet healthcare consumers that want access to a trusted, recognized healthcare leader for their on-line healthcare purchases.
In addition to selling products, the on-line pharmacy will allow CPS to expand its disease state management programs. CPS has created a variety of disease state management programs that currently specialize in treating diabetes, HIV/AIDS and transplant patients. The disease state management programs provide information and assistance with compliance issues, self- education, self-care and health risk assessments. The expansion of these programs onto the Internet should assist healthcare professionals responsible for the medical care of millions of patients.
CPS plans to bring its pharmacy on-line during the third quarter of 1999 and has been evaluating potential strategic Internet partners that are established in the Internet community to assist in implementing its electronic commerce (e-commerce) strategy. The Company plans to announce the selection of its strategic alliance(s) in the near future.
Richard M. Smith, Coram president, stated, "Our two key drivers with this initiative are to enhance patient care and reach new customers. An on-line pharmacy will enable us to leverage our off-line assets, which include CPS' successful mail order pharmacy business, a large patient base throughout the country and a broad network of referral sources nationwide. Our proven expertise in treating chronically ill patients, coupled with our knowledge of the regulatory and medical issues in the mail order pharmacy business, give us a clear advantage and should accelerate the implementation of our Internet strategy."
Dom Meffe, CPS president, added: "CPS has demonstrated its leadership position in providing pharmacy services along with the ability to manage specific chronic medical conditions. We will differentiate ourselves in the e-commerce pharmacy marketplace with our clinical capabilities, specialty niche and excellent reputation. The disease management modules we are preparing to offer on-line to both patients with specific conditions as well as health plans and managed care organizations will give us a competitive advantage. This will enable us to grow our revenue by offering Internet consumers access to a trusted, recognized healthcare leader for their on-line healthcare purchases." |
