Catamaran Corporation (formerly SXC Health Solutions) is the former name of a company that now operates within UnitedHealth Group'

(since July 2015). It sells

pharmacy benefit management In the United States, a pharmacy benefit manager (PBM) is a third-party administrator of prescription drug programs for commercial health plans, self-insured employer plans, Medicare Part D plans, the Federal Employees Health Benefits Program, ...

and medical record keeping services to businesses in the United States and to a broad client portfolio, including health plans and employers. Working independently of the government and insurance companies allowed it to operate as a third party verifier; the RxCLAIM online claim processing system allowed for prescription drug claims to be processed online if the customer lived in and filled his/her prescription in the United States. SXC had three separate but interrelated business segments which dealt with prescription drug programs. For 2013, 23% of company revenue came from Cigna Corporation. Most of the company's growth came in 2008 when it doubled in size; between 2005 and 2010 revenue increased 3,400%. As a Canadian startup, the company received

venture capital Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to start-up company, startups, early-stage, and emerging companies that have been deemed to have high growth poten ...

subsidies A subsidy or government incentive is a form of financial aid or support extended to an economic sector (business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from the government, the ter ...

from the

Canadian government The government of Canada (french: gouvernement du Canada) is the body responsible for the federal administration of Canada. A constitutional monarchy, the Crown is the corporation sole, assuming distinct roles: the executive, as the ''Crown-in ...

in addition to private investments. These subsidies allowed the business to grow initially and establish its business model in advance of its

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...

, which was offered through the NASDAQ exchange in 2009. The success of the mixed public and private approach in SXC's case has been called "perhaps the best example of the flexibility and the value added by the Canadian hybrid system." In 2013 company revenue increased by 49% thanks to a full year of prescription claims at the Catalyst division, and additional volumes from newly acquired Restat. On March 30, 2015, it was announced that Catamaran will be acquired by OptumRx (A UnitedHealth Group company).

History

Systems Xellence (SXC), founded in 1993, was a Canadian company that first went

public In public relations and communication science, publics are groups of individual people, and the public (a.k.a. the general public) is the totality of such groupings. This is a different concept to the sociological concept of the ''Öffentlichk ...

in 1995 when it joined the TSX. Six years later, in 2001, it acquired ComCoTec, an Illinois-based software business. After going public on the NASDAQ stock market in 2006, the company shifted its headquarters from

Milton, Ontario Milton ( 2016 census population 110,128) is a town in Southern Ontario, Canada, and part of the Halton Region in the Greater Toronto Area. Between 2001 and 2011, Milton was the fastest growing municipality in Canada, with a 71.4% increase in popu ...

to Chicago, the city ComCoTec was based in. SXC was one of the first companies to build technology used in pharmacy benefit management. In February 2008, eight months after the company changed its name to SXC Health Solutions, it acquired National Medical Health Card Systems, Inc. (NMHC) for

US$ The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...

143 million in a move that doubled its size and workforce. It is now known as InformedRx, a division of SXC. On December 19, 2008, the company also acquired Zynchros, an eight-year-old

Seattle Seattle ( ) is a seaport city on the West Coast of the United States. It is the seat of King County, Washington. With a 2020 population of 737,015, it is the largest city in both the state of Washington and the Pacific Northwest regio ...

-based formulary management business. SXC purchased private company MedfusionRx, Inc on December 2, 2010 for $100 million. Reasons for the acquisition include an interest in strengthening SXC's position in the speciality pharmacy market and improving cost cutting capabilities in the management of complex conditions and improving supportive care. MedfusionRx provides voice messaging services to people in all 50 US states as well as other clinical services to over 9000 patients. The messages have to do with medical treatment assistance including the delivery and refill reminders of medication and patient monitoring for people with chronic diseases. It was founded in 2003 in Birmingham, Alabama. Medfusion manages $270 million in drug spending. In 2012, SXC agreed to buy rival Catalyst Health Solutions Inc. in a roughly $4.14 billion cash-and-stock deal. Shortly thereafter, SXC Health Solutions Corp. renamed the company, Catamaran Corp. In 2015, health insurer UnitedHealth Group agreed to buy pharmacy benefit manager Catamaran Corp in a deal worth about $12.8 billion.

Business segments

SXC has three main business segments: InformedRx, Healthcare IT Group (HCIT), and Health Business Systems. InformedRx is SXC Health Solution's pharmacy benefit management service. It deals with formulary administration, benefit plan design and management, pharmacy network management, drug utilization review, clinical services and consulting, reporting and information analysis, mail services and specialty pharmacy, and consumer web services. Healthcare IT Group focuses on the technological aspects of the company. It includes the RxCLAIM, RxTRACK, and RxPORTAL customer interfaces, which support the electronic processing of prescriptions. It also includes pharmacy technology services (technology relied upon by

application service provider An application service provider (ASP) is a business providing application software generally through the Web. The ASP model The application software resides on the vendor's system and is accessed by users through a communication protocol. Alter ...

s), as well as Zynchros, a provider of formulary management tools. Health Business Systems are management systems providers to retail, institutional or nursing home, and mail order pharmacy environments.

Customers

SXC Health Solutions has been used by various organizations, including Cigna, HealthSpring,

PharMerica PharMerica is a Fortune 1000 company formed in January 2007 from the merger of Kindred Healthcare's pharmacy business with a subsidiary of AmerisourceBergen. The company is headquartered in Louisville, Kentucky, and operates a major customer sup ...

TennCare TennCare is the state Medicaid program in the U.S. state of Tennessee. TennCare was established in 1994 under a federal waiver that authorized deviations from the standard Medicaid rules. It was the first state Medicaid program to enroll all Medi ...

, the Boston Medical Center HealthNet Plan, and Health Alliance of Michigan.

References

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External links

Reuters entry
1993 establishments in Ontario Companies formerly listed on the Nasdaq Companies based in DuPage County, Illinois Health care companies established in 1993 Health care companies based in Illinois Health care companies disestablished in 2015 Information technology companies of the United States Pharmacy benefit management companies based in the United States Companies formerly listed on the Toronto Stock Exchange 2015 disestablishments in Illinois 2015 mergers and acquisitions American companies disestablished in 2015 American companies established in 1993 Health care companies of Canada