MIAMI, Aug. 14, 2017 (GLOBE NEWSWIRE) -- Progressive Care Inc. (OTC PINK:RXMD), through its subsidiaries Smart Medical Alliance, Inc. and PharmCo, LLC, is a South Florida health services organization and provider of prescription pharmaceuticals, compounded medications, the sale of anti-retroviral medications, medication therapy management (MTM), and the supply of prescription medications to long term care facilities, administration and practice management, utilization management, quality assurance, EHR Implementation, billing and coding, health practice risk management, announces approximately 5.2 million in revenues during the Second Quarter 2017, a 15% increase over the same quarter in 2016.
The company dispensed a total of 108,000 prescriptions during the six months ended June 30, 2017, an increase of 5%. Growth trends were due to expanded marketing efforts, directed advertising, and increased visibility of PharmCo’s performance rating. The Company provides services to nearly 12,000 patients of diverse demographics across South Florida.
Operating income decreased by $246,000 in 2017 as compared to 2016. Second quarter operating income was negatively impacted by a variety of factors, such as increases in DIR fees. “DIR” stands for “direct and indirect remuneration” and was initially a term coined by the Centers for Medicare and Medicaid Services (CMS) related to the Medicare Part D benefit to address price concessions that would ultimately impact the gross prescription drug costs of Medicare Part D plans that were not captured at the point of sale. Today, DIR fees are effectively PBM clawbacks of reimbursements based on factors that vary from plan to plan. These fees lack transparency and are extremely difficult to predict and accrue. DIR fees are often applied retroactively, which has caused the cost of DIR fees to be nearly 300% higher than in the first quarter of the year. Some PBMs may reduce or return DIR Fees based on the performance of the pharmacy within their network. As of May 2017, the Company’s performance ranks in the 90th percentile based on a 6 month average between comparative rankings in all PBM networks.
Operating income in the second quarter was also impacted by the hiring of additional operations personnel associated with the continued growth and development of the company as well as costs totaling approximately $145,000 associated with the settlement of a non-recurring legal action and increased auditing/accounting fees.
“The company is committed to providing shareholders with results and value driven by continued expansion into new market territories, concentrated efforts towards developing our adherence services to medical providers, and enhancement of technological opportunities,” stated S. Parikh Mars, CEO. “Progressive Care is determined to push forward with unmatched capabilities coupled with innovation as the company continues to evolve across our enterprise.”
About Progressive Care
Progressive Care, Inc. (OTC PINK:RXMD), through its subsidiary PharmCo, LLC, is a South Florida health services organization and provider of prescription pharmaceuticals specializing in health practice risk management, compounded medications, the sale of anti-retroviral medications and related medication therapy management, and the supply of prescription medications to long term care facilities.
Cautionary Statement Regarding Forward Looking Statements
Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words “anticipate,” “believe,” “estimate,” “upcoming,” “plan,” “target,” “intend” and “expect” and similar expressions, as they relate to Progressive Care Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.
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Source:Progressive Care, Inc.