MIAMI, Nov. 15, 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), the supply of prescription medications to long term care facilities, administration and practice management, utilization management, quality assurance, EHR Implementation, billing and coding, and health practice risk management, announces financial results for the third quarter and provides updates on the Company's strategies.
The company dispensed a total of 163,000 prescriptions during the nine months ended September 30, 2017, an increase of 2.5%. Revenues for the third quarter increased 5% to just over $5.1 million. Revenues increased 14% for the nine months ended September 30, 2017 to over $15 million. The Company continues to grow its patient base by marketing to doctors' offices and clinics who refer their patients to the pharmacy. Healthcare providers are increasingly recommending PharmCo because of its high standards of patient care and attention to performance measurements and their implications.
Operating income decreased by approximately $250,000 in 2017 as compared to 2016. Third quarter operating income was negatively impacted primarily by 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 200% higher than in the second quarter of the year. DIR fees through September 30, 2017 was over $300,000, over half of which was incurred in the third quarter. Some PBMs may reduce or return DIR Fees based on the performance of the pharmacy within their network.
Q & A Updates
- New States - The Company has renewed its efforts to acquire state licenses. PharmCo has licenses pending in three new states: Utah, Arizona, and Rhode Island.
- Investor Relations First Look Equities is tasked with PR distribution. Their distribution platform is designed to increase the number of readers of the Company's press releases and information which would ultimately have a positive impact on trading volume and shareholder value. The Company is also looking to recruit its own in-house IR team that would work to increase shareholder value.
- TelePharmacy The Company is working on a proprietary platform that would deliver technician or pharmacist consultation services direct to patients or healthcare providers through a secure digital live stream. This platform is currently being tested in Century Village of Pembroke Pines and has had an impact on company recognition, brand loyalty, and prescription processing efficiency.
- OTCQB The Company has submitted all required paperwork to OTC Markets for its review of the Company's OTCQB application. The CEO recently submitted follow-up information to OTC Markets as part of its review. The process is ongoing, but the management expects the change in listing tier to be completed before the end of the year.
"PharmCo over the years has become known for its unique delivery of patient care," stated S. Parikh Mars, CEO. "We see growth every month from clinics and healthcare providers who need and rely on what PharmCo does in the pharmacy industry that no other company does. We are leading the way despite headwinds from PBMs and regulatory uncertainty. We have accomplished a great deal this year so far and we know that there is so much more that we need to do. We will grow, we will outperform our peers and we will deliver value to our shareholders.
About Progressive Care
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), the supply of prescription medications to long term care facilities, administration and practice management, utilization management, quality assurance, EHR Implementation, billing and coding, and health practice risk management.
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.
Senior Advisor Business Development
Progressive Care, Inc.
Source:Progressive Care, Inc.