Rx Savings Solutions, a leading pharmacy transparency solution, today announced the company has secured $18.4 million in a new round of funding led by McCarthy Capital to catalyze their innovative approach in addressing pharmacy costs for health plans and large employers across the nation.
Rx Savings Solutions membership has soared in the past two years, climbing from 100,000 members in 2015 to what will be 2 million lives served by January 1, 2018. The new capital will be put toward sales, marketing, and investment in additional software functionality to make cumbersome processes throughout the pharmacy paradigm easier for consumers to navigate.
"Everyone in the nation has the same problem – high drug costs – and most people don't know there are options to save money," says Michael Rea, pharmacist, founder and CEO of Rx Savings Solutions. "We are using the power of technology to streamline how Americans purchase prescription drugs in the same ways the Internet has transformed how consumers book travel, buy cars, or shop for electronics. Like a shopping app, we do the price checking for you and proactively alert you of the savings directly."
Brian Zaversnik, Vice President of McCarthy Capital, will join the Rx Savings Board of Directors. Zaversnik will be actively involved in the business along with Rea, local investor Dan Henry, and others. Henry has guided several companies in the Kansas City area from humble beginnings to billion dollar corporations. He was actively involved in the last funding Rx Savings Solutions announced in July 2015of $2.7 million in capital.
Rx Savings Solutions relies on patented algorithms to analyze thousands of recommendations to find the best clinical option while maximizing savings for users. The company works with health insurers and self-funded employers to drive consumerism and engagement for employees by focusing on pharmacy spend. Savings for the plan are maximized as well, with marquee clients like Blue Cross and Blue Shield of Kansas City reaching a monthly ROI of 4:1 within the first year of the program.
Other clients include Quest Diagnostics, Berkshire Hathaway Media Group, the State of Kansas Employee Health Plan, Teachers Health Trust, West Virginia Public Employees Insurance Agency and American Century Investments, among others.
"Rx Savings Solutions is the national leader in a rapidly evolving space," said Brian Zaversnik, Vice President of McCarthy Capital. "The sophistication of the software and the corresponding savings for clients are clear differentiators. They are bringing pharmacy and technology together in a way that will transform the industry and bring significant efficiency to the market."
Rx Savings Solutions' system is HIPAA security compliant. All interaction between the software platform and the employee is confidential. Rx Savings Solutions is without bias and delivers the most accurate, cost-effective data to subscribers based solely on the location and medication needs of each user.
"This new strategic capital gives us the resources needed to continue to build an organization that combines premier pharmacy expertise with leading technology expertise," adds Rea. "The result is a powerful, proactive software approach that is one of a kind."
About Rx Savings Solutions
Rx Savings Solutions offers an innovative, patented engagement software system empowering employers and employees to be educated consumers of healthcare. Founded and operated by a team of pharmacists and software engineers, Rx Savings Solutions supports a collaborative, cost-saving solution for purchasing prescription drugs. Using their clinical backgrounds, Rx Savings Solutions delivers proactive personalized recommendations on ways to optimize therapies to members, while achieving proven savings results for employers, employees and health plans. Located in Kansas City, Rx Savings Solutions serves self-insured businesses, employer groups, health plans and their members nationwide. For more information, visit rxsavingssolutions.com or follow them on LinkedIn and Twitter.
About McCarthy Capital
McCarthy Capital Fund VI is managed by McCarthy Partners Management, LLC, a registered investment advisor that conducts business as McCarthy Capital. McCarthy Capital, headquartered in Omaha, NE, is focused exclusively on lower middle-market companies. For more than 30 years, the McCarthy organization has been partnering with founders, families, and exceptional management teams to support the growth of their companies. For more information about McCarthy Capital, please visit www.mccarthycapital.com.
