DENVILLE, NJ--(Marketwired - Aug 1, 2013) - In the news release, "Healthcare Corporation of America Announces First Contract for 340 Basics Total Solution Software," issued earlier today by Selway Capital Acquisition Corp (
Healthcare Corporation of America Announces First Contract for 340 Basics Total Solution Software
DENVILLE, NJ -- August 1, 2013 -- Healthcare Corporation of America (
HCCA's 340 Basics Total Solution software will be used by a private FQHC in southern New Jersey which services approximately 50,000 340B-eligible patients. Initially, 340 Basics software will be deployed in the center and two affiliated pharmacies. More pharmacies are expected to join in the coming months as part of this contract. HCCA will operate in the 340B market through its new wholly owned subsidiary 340 Basics Inc.
"Clinics and hospitals don't take advantage of the opportunities available under the government's 340B program because of compliance and administrative hurdles," said Gary Sekulski, Chairman and Chief Executive Officer of Healthcare Corporation of America. "Our innovative software, and the professional expertise we deliver alongside it with 340 Basics, allows more eligible health care providers to lower medication costs for their patients. That's a win for everyone."
The 340B program was founded in 1992 to allow eligible health-care providers, like federally qualified health centers and some hospitals, to get discounted drugs from manufacturers to lower the cost for patients, while improving their own operating results. However, since health centers and hospitals are subject to audits from both the federal government and the drug manufacturers, some eligible centers have shied away because of the added cost to comply with the program. Also, eligible centers and hospitals have complained that existing compliance software is insufficient to meet their needs.
The software solution from 340 Basics helps qualified health centers and hospitals manage their compliance through proprietary software as well as management processes and controls. 340 Basics provides multiple channels within the operational framework to meet administrative and inventory control challenges relating to 340B compliance, to maximize potential pharmacy savings and to control costs.
There are roughly 2,000 eligible centers in the country and 4,000 eligible hospitals for the 340B discount program. Software is used both by the eligible center and participating pharmacies.
"Along with our Prescription Corporation of America pharmacy benefit management business ("PBM"), 340 Basics fits in well with our mission to help entities lower the cost of delivering medication to the people they serve," Sekulski said.
Rollout of the software will occur on a limited basis in the fourth quarter of this year, with the bulk of sales beginning in 2014.
"Until now, our focus has been on growth in our core PBM business. This new unit meets our goal of diversifying our business into higher-margin areas," said Yoram Bibring, Healthcare Corporation of America's Chief Financial Officer. "Right now, we believe our business is tracking with gross margins in the range of 6 percent to 7 percent. As we increase sales of the exciting new products and services provided by 340 Basics, we anticipate improvement in our gross margins starting in calendar 2014."
About Healthcare Corporation of America
Based in Denville, N.J., Healthcare Corporation of America (http://www.hccarx.com) was created in 2013 through its acquisition by Selway Capital Acquisition Corporation. HCCA's mission is to reduce prescription drug costs for clients while improving the quality of drug care. Through its Prescription Corporation of America subsidiary, HCCA administers prescription drug benefit programs for employers ranging from commercial clients of various sizes and industries to business associations and trade groups, as well as local government entities, labor unions, charitable and non-profit organizations, and third-party administrators of self-insured benefit plans. Through its 340 Basics subsidiary, the company provides software and services to help qualified entities manage the compliance and audit processes related to the federal 340B Drug Discount Program.
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties and includes statements about our ability to deploy 340 Basics software in more pharmacies in the coming months; the ability of our software to allow eligible health care providers to lower medication costs for their patients; our ability to achieve gross margins in the 6% to 7% range and our ability to improve gross margins in calendar 2014. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including but not limited to the following: we may not be able to deploy 340 Basics software in more pharmacies in the coming months; our software may not allow eligible health care providers to lower medication costs for their patients; we may not be able to achieve gross margins in the 6% to 7% range; we may not be able to improve gross margins in calendar 2014; as well as those factors discussed in the company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the company does not assume a duty to update these forward-looking statements.