Kristian Ferrell
Express Scripts is a leading pharmacy benefits manager (PBM) that manages pharmacy services and lowers drug spend for health plans, employers, labour unions and government agencies. The company was founded in 1986 as a joint venture between Sanus Corp. Health Systems and Medicare-Glaser, a retail chain of more than 79 pharmacies. In 1989, Express Scripts was purchased by New York Life Insurance Company and became a publicly traded company in 1992. The company has since expanded its services, established Express Scripts Canada, and been acquired by Cigna.
| Characteristics | Values |
|---|---|
| Year founded | 1986 |
| Location | St. Louis County, Missouri |
| Type of business | Pharmacy benefits manager |
| Number of pharmacies | 64,000 |
| Number of employees | 18,000 |
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What You'll Learn
Express Scripts' origins in St. Louis, Missouri
Express Scripts began in 1986 in St. Louis County, Missouri as a result of a joint venture between a retail chain of more than 79 pharmacies (Medicare Glaser Inc.) and Sanus Corp. Health Systems. The deal was a 50-50 split ownership between Sanus and Medicare-Glaser, with the new name of Express Scripts (scripts being medical industry jargon for prescriptions).
Medicare-Glaser was founded by Morris Glaser on October 1, 1924. In 1959, Glaser opened discount pharmacies, which would be called Medicare Pharmacy. The discount pharmacies were designed to resemble a doctor's waiting room and were only about 800 to 1,000 square feet, focusing just on prescriptions.
Sanus traces its history to Bradford Systems and Administrative Services, which was founded in Boston in 1968. Bradford had a contract for computer processing of Medicare and Medicaid payments. It was acquired in 1981 by McDonnell Douglas through its McDonnell Automation Company (McAuto) subsidiary for $11.5 million.
Initial plans called for Missouri and Illinois clients to get their prescriptions at the Medicare-Glaser brick-and-mortar pharmacies, while those in other cities could get their prescriptions via mail order—an innovation at the time.
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Express Scripts' 1989 purchase by New York Life Insurance Company
Express Scripts was founded in 1986 in St. Louis County, Missouri, as a joint venture between a retail chain of more than 79 pharmacies (Medicare Glaser Inc.) and Sanus Corp. Health Systems. In 1989, Express Scripts was purchased by the New York Life Insurance Company for $18.2 million.
The acquisition of Express Scripts by New York Life Insurance Company marked a significant milestone in the company's history. Following the purchase, Express Scripts became a publicly traded company in 1992. This move allowed the company to expand its reach and attract new corporate clients. Indeed, in 1993, Express Scripts signed on both FHP International and Maxicare Health Care, as well as corporate clients Lockheed, Service Merchandise, and Ingersoll-Rand. This expansion continued in 1994, with the addition of workers' compensation prescription services and reinsurance to their offerings.
The company's growth trajectory continued, and in 1994, they announced a two-for-one stock split. Two years later, in 1996, Express Scripts established a presence in Canada with the launch of Express Scripts Canada. This expansion into the international market signalled the company's thriving and rapid growth. That same year, Express Scripts further solidified its position in the industry by launching the annual Drug Trend Report and the Outcomes Symposium Conference.
In April 1998, Express Scripts acquired ValueRx, the PBM business of Columbia/HCA Healthcare Corp, further strengthening its position as a leading pharmacy benefits manager (PBM). As a PBM, Express Scripts manages pharmacy services and works to lower drug costs for its clients, which include health plans, employers, labour unions, and government agencies. The company's efforts in this area have resulted in significant savings for its clients, with an estimated annual savings of $38 billion.
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Express Scripts' 1994 expansion of services
Express Scripts was founded in 1986 as a joint venture between Medicare Glaser Inc. and Sanus Corp. Health Systems. In 1989, it was purchased by New York Life Insurance Company and became a publicly traded company in 1992. In 1993, Express Scripts signed on both FHP International and Maxicare Health Care as well as corporate clients Lockheed, Service Merchandise, and Ingersoll-Rand.
In 1994, Express Scripts expanded its services by adding workers' compensation prescription services and reinsurance. The company also began to emphasise computer technology, introducing its RxWorkbench software for analysing patient prescription data. This technology allowed the company to identify treatment and spending patterns, leading to improved patient outcomes at a lower cost. By the end of 1994, ESI membership had grown to 5.7 million.
In addition to expanding its services, Express Scripts also announced a two-for-one stock split in 1994. The company's growth fuelled its stock price, which reached $50.50 per share that year. Express Scripts continued to expand its operations and client base, establishing Express Scripts Canada in 1996 and acquiring ValueRx, the PBM business of Columbia/HCA Healthcare Corp, in 1998.
As a leading pharmacy benefits manager (PBM), Express Scripts manages pharmacy services and lowers drug costs for thousands of clients, including health plans, employers, labour unions, and government agencies. The company's expansion has continued into recent years, with the opening of a new office building and the addition of an existing building as part of a $56 million expansion expected to add 1,500 employees.
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Express Scripts' 1996 establishment of Express Scripts Canada
Express Scripts was established in 1986 as a joint venture between Sanus and Medicare-Glaser, a St. Louis-based pharmacy. The company became a publicly traded company in 1992 and expanded its services in 1994. In 1996, Express Scripts established a subsidiary in Canada, which has since become a leading health benefits manager in the country. The Canadian branch is recognised as part of the most innovative pharmacy benefit manager (PBM) in the world.
Express Scripts Canada provides comprehensive, cutting-edge research and insights on the use of prescription medications in the Canadian private sector. The company's flexible technology platform allows it to adjudicate pharmacy, dental and extended health claims, and its clinical expertise and members-first approach help clients promote better health outcomes while managing and reducing plan sponsor costs.
As a leading pharmacy benefits manager, Express Scripts manages pharmacy services and lowers drug costs for health plans, employers, labour unions and government agencies. The company saves approximately $38 billion annually for its clients through its proven track record of delivering significant savings and better clinical outcomes.
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Express Scripts' 1998 acquisition of ValueRx
Express Scripts is a pharmacy benefits manager (PBM) that manages pharmacy services and lowers drug spend for health plans, employers, labour unions and government agencies. In April 1998, Express Scripts acquired ValueRx, the PBM business of Columbia/HCA Healthcare Corp, for about $445 million in cash. This was a significant acquisition for Express Scripts, as it allowed them to expand their services and reach in the pharmacy benefits management space.
The acquisition of ValueRx was part of Express Scripts' strategy to grow and diversify its business. By acquiring ValueRx, Express Scripts gained access to Columbia/HCA Healthcare Corp's pharmacy benefit management unit, which was a leading player in the industry. This move strengthened Express Scripts' position in the market and enabled them to offer enhanced services to their clients.
The acquisition also brought with it a number of benefits for Express Scripts. Firstly, it provided them with a larger network of pharmacies and healthcare providers, which improved their ability to serve their customers. Secondly, it gave them access to ValueRx's expertise and resources in the field of pharmacy benefit management, allowing them to improve their own processes and systems. Additionally, the acquisition likely helped Express Scripts to establish and strengthen relationships with key stakeholders in the healthcare industry, including health plans, employers, and government agencies.
Following the acquisition, Express Scripts continued to expand and diversify its business. In April 1999, the company purchased Diversified Pharmaceutical Services from SmithKline Beecham Corp for $700 million. This acquisition further strengthened their position in the pharmaceutical industry and expanded their offerings. In the same year, Express Scripts also purchased stock in PlanetRx.com, a partnership that offered members options for purchasing prescriptions and over-the-counter health products online.
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Frequently asked questions
Express Scripts is a leading pharmacy benefits manager (PBM) that manages pharmacy services and lowers drug spend for health plans, employers, labour unions and government agencies.
Express Scripts began in 1986 in St. Louis County, Missouri as a result of a joint venture between a retail chain of more than 79 pharmacies (Medicare Glaser Inc.) and Sanus Corp. Health Systems.
Sanus traces its history to Bradford Systems and Administrative Services which was founded in Boston in 1968. Bradford had a contract for computer processing of Medicare and Medicaid payments. It was acquired in 1981 by McDonnell Douglas through its McDonnell Automation Company (McAuto) subsidiary for $11.5 million.
In 1993, Express Scripts signed on both FHP International and Maxicare Health Care and corporate clients Lockheed, Service Merchandise, and Ingersoll-Rand.
Express Scripts saves approximately $38 billion for the thousands of clients it serves.
