Sale is subject to regulatory approvals and closing conditions, but is expected to close during the fourth quarter of 2017.
St. Louis based Express Scripts provides integrated pharmacy benefit management (PBM) services and has acquired the privately-held eviCore healthcare, which manages medical benefits for 100 million patients. Evicore brings to the sale a medical benefit management service ecomplementary to Express Scripts PBM services in an era of increasing competition.
EviCore will operate as a standalone business unit within Express Scripts.
The goal of the purchase is to provide Express Scripts a new edge in controlling costs by implementing eviCore’s medical cost containment capabilities. The move is designed to expand Express Scripts’ set of services for those making the transition to value based care. It’s also likely a move to shore up its market strength as it prepares for the prospect of losing its Anthem contract that expires in 2019. Anthem says Express Scripts overcharged it by $3billion a year, a charge the PBM denies.
President and CEO of Express Scripts Tim Wentworth commented on the acquisition of eviCore,
“Together with eviCore, Express Scripts will be an even more powerful partner in managing costs for patients and payers, bringing us closer to our goal of becoming the nation’s leading patient benefit manager. By further strengthening our independent model and creating numerous opportunities for growth, the acquisition of eviCore will deliver value for our clients, patients, providers, and shareholders.”
John Arlotta, chairman and CEO of eviCore said,
“The greatest opportunity to improve healthcare is by reducing wasteful spend and overutilization while delivering quality outcomes. Together, eviCore and Express Scripts will be uniquely positioned to tackle these problems. We are proud of what we have accomplished over 25 years of serving patients and clients and we are excited about our future with Express Scripts.”
Begun in 2014 from a merger of two privately held companies, CareCore National LLC and MedSolutions Inc., eviCore healthcare has leading positions managing benefits in categories including radiology, cardiology, musculoskeletal disorders, post-acute care and medical oncology. eviCore has approximately 4,000 employeess.
Read more in Forbes
Get more on the business of the deal from Bloomberg
Read the press release from Express Scripts