On the Road to Results with Prescription Solutions
Fall 2006   
NOTE FROM ED FEAVER

As we all know, our integration with UnitedHealth Group (UHG) over the last 12 months has had its share of hurdles. I'd like to take this opportunity to thank you all for your diligence and hard work during this period.

Now, I'm happy to announce that your diligence and hard work are paying off through opportunities currently available to us through our alliance with UHG. You can read more about this exciting and challenging opportunity by going to www.rxsolutions.com.

In short, the Medicare Part D pharmacy administrative services for Ovations members, the division of UHG focused on the health and well-being of seniors, will transition to Prescription Solutions in 2007. Since the inception of Medicare Part D on January 1 of this year, Ovations members have received these services through a UHG agreement with Walgreens Health Initiatives (WHI).
The work to transition from WHI to Prescription Solutions is already underway and, effective January 1, Ovations Part D PDP plans will be processed by Prescription Solutions. MAPD plans will migrate to Prescription Solutions in July 2007.

This is a positive opportunity that has come about due to our alliance with UHG and the synergies of combining the strengths of our two companies. Not only does it add to our book of business, but it will enhance the experience of millions of seniors enrolled in Medicare Part D plans through Ovations.

Additionally, I'm excited to announce that our mail service facility in Overland Park, KS dispensed its first prescription on September 12, 2006. The opening and smooth operation of this facility is integral to our ability to successfully service the Ovations book of business. You can read more about MSIII in this edition of Prescription Solutions eSPOTLIGHT.

As we move foward, we can look torward to other opportunities arising from our relationship with UHG. Thanks to all of you – for your dedication to Prescription Solutions!
MAIL SERVICE PHARMACY III STRESSES IMPORTANCE OF PEOPLE AS PRESCRIPTION SOLUTIONS GROWS

Prescription processing has begun at Mail Service Pharmacy III in Overland Park, Kansas. All of us, regardless of location, will play a role in the success of this exciting venture.
Customer Service, Mail Service and Fulfillment are now housed in the huge new facility. Forty-five thousand square feet will be dedicated to the pharmacy fulfillment area alone. But a facility is only as impressive as the people working in it - a fact that puts us head and shoulders above our competition.

Customer Service has been live since last November. Our representatives are answering Prescription Solution's member service calls, and fielding mail service questions, patient consultation calls and the Pharmacy Help Desk line.

The Operational Aspects
“We expect to be filling prescriptions in Kansas in September of this year,” says RJ Correia, vice president of Mail Service and Specialty Pharmacy Operations. “By the end of last year we had hired about 250 employees and now we're putting on-site leadership in place.It really is a huge task – we had a lot of people flying back and forth between Southern California and Kansas last year.”



The prescription fulfillment capacity per shift will eventually be twice that of Carlsbad – in far less than twice the space (38,000 square feet in Carlsbad compared to 49,000 in Overland Park), thanks to improved efficiency and systems.

Operating the two mail service facilities in Carlsbad and Mira Mesa gave us a very specific picture of what was needed in the new facility. “We’ve been able to build the entire prescription filling infrastructure to our specifications,” says RJ. “We’ve taken the latest bulk fulfillment technology for pharmaceuticals and adapted the overall design and flow to fit our needs.”

In the Meantime: Second Shift in Carlsbad
Perhaps the biggest challenge now, says RJ, is for the staff in Carlsbad. “They’ll have to shoulder the burden of increased volume while we come up to speed in Kansas. Their patience and support is critical.”

Specialty Pharmacy will remain only in California for the time being. “We expect 125 percent growth in Specialty Pharmacy this year and have procured another 'overflow' facility to accommodate the growth.”
Not Dorothy’s Kansas
According to RJ, more than 300 sites were on the first list of locations to be considered. So why Kansas? It met all our search criteria, including:

• Availability of a labor market for pharmacists, pharmacy technicians and call center personnel – Overland Park is close to two quality schools of pharmacy.
• Geographic location proximal to the eastern United States – also proximal to a major drug wholesaler.
• Physical facility fairly quickly available and expandable.
• Weather patterns – more important than you may realize; consider that some of the sites also looked at were in Florida.
• Friendly regulatory environment for mail service pharmacies.
• Friendly business environment – we expect to have 1,300 full-time employees once we’re fully up and running, which will make Prescription Solutions the fourth largest employer in the county.
• Business incentives offered by city, county and state.

In addition, RJ says quality of life and cost of living in Overland Park were important factors. “This is a good place for people to live,” he says. “It’s a very metropolitan area, close to Kansas City.” Some Southern California employees have also expressed interest in relocating.

Benefiting Our Company’s Employees and Clients Alike

Our customers will also appreciate what they’ll gain from our new location, says RJ. “The geographic proximity will result in decreased turn-around time and we’ll be more competitive in terms of pricing. The fact that we’re one of only 10 national companies selected to fulfill Medicare Part D mail service prescriptions and were certified by the National Association of Boards of Pharmacy as a Verified Internet Pharmacy Practice Site (VIPPS) should also make clients feel very confident about our service.”

(Mail Service Facility III… continued on page 2)








 
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