SXC Health Solutions Corp. Q3 2009 Earnings Call Transcript

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2009-11-07 07:28:07.0

Tags: Call Transcript, Full-service, Earnings, Sales Channel, Networking, Sales, Seeking Alpha, Systems Xcellence Inc.

Question-and-Answer Session

Operator

Thank you. (Operator instructions). Your first question comes from David MacDonald with SunTrust. Please go ahead.

David MacDonald -- SunTrust

Good morning, guys. Can you, Mark, just touch briefly on if there's anything left for 1/1 sitting out there in terms of the selling season and then kind of what's sitting in front of you in terms of mid-year starts for 2010? Just kind of an update on the pipeline of where we stand there.

Mark Thierer

Yes, Dave, good morning. We do have a handful of 1/1 decisions that are still hanging out. I'll tell you they are medium size employers. And all the way up through mid-December, a bunch of our TBA clients will be adding new business. So, we do have an opportunity to make some incremental additions. Most of the big decisions have been made by now. And so, that's the outlook for 1/1. As it relates to 4/1 and then mid-year starts 7/1, we’re encouraged with the RFP area and our business proposals group. We've got a lot of good opportunity including some nice size, middle-market health plans that are looking for mid-year starts. So, we're busy. We're bit busy in our bids area.

David MacDonald -- SunTrust

Okay. And then, Mark, in your prepared comments you talked about Presbyterian being only a portion of kind of the upselling success, ASP customers moving to full service. Can you put any numbers around that? Either how many other accounts or what percentage of pull-through Presbyterian represented, just to give us a sense of how much more business there was there or are you not comfortable to go to that level of detail?

Mark Thierer

Well, Dave, I'll tell you this. We’ve 70 payer clients in that book of business and many of them represent good targets for us in terms of pull through. We've been active in terms of full service PBM conversions like Presbyterian and we’ve been successful with a couple others. And so, some of these wins that we've posted we will not be announcing and we've made a decision to do it that way. But I'll tell you, whether it's mail order, specialty pharmacy, or all the way through to full service PBM including clinical management, formulary management, network management, this is a unique discriminator in our model.

And every time we do one of these pull-throughs, we drive the top line and the margin line and importantly, we're saving our clients money. They're making these conversions because it's improving how they run their businesses. So, this is an area where we’re all hands on deck and very focused.

 

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