National Medical Health Card Systems, Inc.: Sales Strategy : This report focuses on the sales strategies of National Medical Health Card Systems, Inc (NMHC), a pharmacy benefit manager (PBM) in the US. The report begins with the history of the company; then describes in detail the profile of the senior management. It also analyzes the company’s PBM value chain and sales strategies.
Executive Summary
NMHC operates a health information company through its subsidiary, Integrail, Inc., a mail service pharmacy through its subsidiary, NMHCRX Mail Order, Inc., and a specialty pharmacy through its subsidiary, Ascend Specialty Pharmacy Services, Inc.
The company’s primary clients are small managed care organizations (MCOs), unions, and third-party administrators (TPAs).
NMHC maintains a comprehensive network of both retail and mail-order pharmacies (including NMHC's own facility). Its retail pharmacy network consists of over 53,000 pharmacies.
The company differentiates itself from its competitors by offering a total solutions package to clients. It offers a unique product offering for the small organizations with its combination of traditional PBM services, mail delivery, specialty distribution and disease management services.
The company has a strong track record for acquisitions. It has acquired seven companies in the last six years. The acquisition of Pharmaceutical Care Network in 2005 complemented NMHC's offerings, while adding strength to its presence in California.
NMHC utilizes the services of a rebate administrator for processing and collection of rebates from the manufacturers. The Administrator negotiates with the drug manufacturers and retains a percentage of the rebate as an administrative fee.
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