SXC Health Solutions to Provide Pharmacy Benefits Processing for the State of Washington Medicaid Program Under Subcontract with
July 14 2005 - 8:00AM
PR Newswire (US)
SXC Health Solutions to Provide Pharmacy Benefits Processing for
the State of Washington Medicaid Program Under Subcontract with
Client Network Services, Inc. LOMBARD, IL, July 14
/PRNewswire-FirstCall/ -- SXC Health Solutions, Inc., ("SXC" or the
"Company"), a subsidiary of Systems Xcellence Inc. - (TSX:SXC), a
leading provider of healthcare information technology solutions
throughout the pharmaceutical supply chain, today announced a
5-year subcontract with Client Network Services, Inc. ("CNSI") to
provide prescription drug claims applications and systems hosting
services for the State of Washington's Medicaid program. The
initial five-year term of the agreement is valued at approximately
$10 million. The contract has an option for three additional years,
and if all options are exercised, the contract would have a value
of more than $19 million. All figures are in U.S. dollars. Under
terms of the agreement, SXC will provide facilities management
services to support prescription drug claims and rebate contract
management services. The contract will contribute to the growth of
SXC's transaction processing business and its related base of
recurring revenue. The contract has an initial Design, Development,
and Implementation (DDI) phase for approximately two years during
which SXC will customize its software products for use by State of
Washington Medicaid program personnel. After implementation, the
Operations and Maintenance (O&M) phase will begin, and State
personnel will operate and manage the program using SXC's products
and services. "This is an important contract for us, as it affirms
the capability of SXC to expand our market base directly into the
Medicaid arena. Coupled with our support of the Centers for
Medicare and Medicaid Services-Endorsed Medicare Discount Drug
Card, our long-term support of the British Columbia Ministry of
Health, and upcoming Medicare Part D programs wherein SXC expects
to support a number of Prescription Drug Plan (PDP) and/or Medicare
Advantage (MA) clients, this contract establishes SXC as a leading
provider of pharmacy benefits administration services and products
to Federal, State, and, Canadian provincial governmental agencies"
said Gordon S. Glenn, President and CEO of SXC. About Client
Network Services, Inc. Founded in April 1994, CNSI is an employee
owned, 8(a) certified company that offers IT business solutions to
meet customer requirements worldwide. CNSI is committed to
excellence, with total customer satisfaction the primary motivator
for its day-to-day operations. CNSI serves a diverse range of
government and commercial clients, and offers the technology and
resource expertise to reduce costs and improve the productivity of
client IT systems. CNSI's corporate mission is to be a premier
provider of the highest quality networking and system solutions,
and to address and support the technological business concerns of
its customers. For more information, visit http://www.cns-inc.com/.
About Systems Xcellence Inc. Systems Xcellence (SXC) is
headquartered in Milton, Ontario with offices and processing
centres in Lombard, Illinois, Warminster, Pennsylvania, Scottsdale,
Arizona and Victoria, British Columbia. Through its SXC Health
Solutions, Inc subsidiary headquartered in Lombard, Illinois, SXC
is a leading provider of healthcare information technology
solutions and services to the U.S. healthcare benefits management
industry. The company's product offerings and solutions combine a
wide range of software applications, application service provider
(ASP) processing services and professional services, designed for
many of the largest organizations in the pharmaceutical supply
chain, such as pharmacy benefit managers, managed care
organizations, independent, chain and mail-order pharmacies and
other healthcare intermediaries. SXC can be found on the Internet
at http://www.sxc.com/. This press release contains forward-looking
statements based on current expectations. These forward-looking
statements entail various risks and uncertainties that could cause
actual results to differ materially from those reflected in these
forward-looking statements. Risks and uncertainties about the
Company's business are more fully discussed in the Company's Annual
Information Form. DATASOURCE: Systems Xcellence CONTACT: Dave
Mason, Investor Relations, The Equicom Group Inc., (416) 815-0700
ext. 237, ; Irwin Studen, Chief Financial Officer, Systems
Xcellence Inc., Tel: (905) 876-4741,
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