WASHINGTON, Aug. 12 (UPI) -- Chronimed Inc. and MIM Corp. are not the biggest corporate fish in the pharmaceutical ocean, but their proposed merger would make them a far larger predator in the specialty pharmacy pond.
Chronimed, of Minnetonka, Minn., is a specialty pharmacy keyed in on drugs and treatments for HIV/AIDS -- 54 percent of its business -- organ transplants and biotech injectable medications. It has 33 distribution centers and a chain of 28 StatScript Pharmacy retail stores across the country. MIM, based in Elmsford, N.Y., is a pharmacy benefit and clinical management company that recently purchased Natural Living, another specialty pharmacy.
Both companies work with patients, healthcare providers and others to manage and streamline services. Together as BioScrip Inc., based at MIM headquarters, they would cover key speciality niches.
Bigger can be better, but Richard H. Friedman, MIM's chairman and chief executive officer -- who will become the new BioScrip chairman -- told UPI's HealthBiz: "The reason that we did this merger is the fact that we really believe strongly that healthcare is local and that the ability to offer distribution and clinical services on a local basis is where we feel the trend will end up."
To that end, he continued, "What we wanted to accomplish was the ability to take their (Chronimed) retail operation and turn them into not only retail but local distribution outlets, so we're much better able to serve the community."
Friedman said although the first goal will be merging the two corporate cultures, there is a "tremendous platform" for growth, as well for making better deals with drug manufacturers and working on disease-management programs.
He said BioScrip also will be looking at providing a stand-alone drug plan for the permanent Medicare prescription drug program that begins in 2006.
The merger should be completed by the end of the year, pending shareholder and regulatory approval. Estimated 2005 revenues are $1.1 billion, including about $700 million from specialty pharmacy revenues and $400 million from PBM/mail service revenues.
SO, WHAT'S ON YOUR WEB SITE?
Luke Visconti, president of DiversityInc, thinks you can tell a lot about a company by what's on its Web site -- the company front door -- particularly in terms of racial and ethnic diversity.
The online magazine's latest scorecard of companies ranks them on eight points that indicate whether they have a corporate culture that understands the needs of a diverse customer and employee base.
Three health insurers were rated on this year's DiversityInc scorecard -- Aetna got a perfect score and an A grade; Cigna, which was termed "improving," got a C; and UnitedHealthcare, which still has a ways to go, got a failing grade.
"I think a Web site is an extremely good way to evaluate a company for many different things, not only diversity," Visconti told HealthBiz.
One of the hot healthcare topics this year is disparities in healthcare based on race and ethnicity. Numerous studies point out there are big differences in access to care and the quality of care for minority patients.
Visconti added not having diversity information on the Web site does not make the company against diversity -- it "just makes them unaware."
"You have to understand as a company, if you want to be successful at communicating, what is required to communicate," he said.
The Scorecard looks at such things as whether the Web site has links to information about ethnic and racial diversity, if there is a search function through which those terms yield useful and up-to-date information, and whether the company has information about itself and careers that would attract and lead to a racially diverse employee base.
Visconti said in selecting a company for which to work, or with which to do business, "if the company doesn't understand the people they are serving, and would not have that information ... as a person of color you should seriously consider if that's the best insurance company for you."
He said the Scorecard has generated change with companies making efforts to rework their Web sites after getting a poor grade.
"How much does it really cost? It costs nothing to change the Web site. It does cost one thing -- a change in mental attitude," he said.
SURVEY: INSURED LIKE HEALTH SAVINGS ACCOUNTS
A survey by America's Health Insurance Plans finds 71 percent of respondents who have health insurance have a favorable opinion of Health Savings Accounts.
"Although HSAs are still in the earliest stages of development, many consumers clearly indicate this new approach offers new opportunities that they will closely consider," the industry group's President and Chief Executive Officer Karen Ignagni said in a statement.
She noted, however, many people still do not have all the detailed information they want about these tax-free savings accounts coupled with high-deductible health plans.
The idea of using HSAs as another option to group health coverage got favorable reviews by 75 percent of Republicans questioned and 67 percent of self-described Democrats.
On the other hand, the survey of 500 adults under age 65 also found that overall, 68 percent of people who had employer-sponsored health plans were satisfied with their current coverage, a slight improvement from previous years.
ABA, CDC WORK ON LEGAL ISSUES IN PUBLIC SAFETY
The American Bar Association, meeting this week in Atlanta, and the Centers for Disease Control and Prevention have created a partnership to work through some key legal issues about how the United States responds to biological and other public health terror threats.
As the CDC implements plans to protect citizens and healthcare workers questions arise about safeguarding personal liberties, public release of a person's confidential health information and whether healthcare workers can be forced to treat people who have potentially deadly infections.
Part of the process also underway is the Community Public Health Legal Preparedness Initiative, which sets up community workshops on the legal roles and responsibilities of public health agencies and healthcare organizations during an emergency situation.
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