BioScrip Inc. (BIOS), a health care-related company recently received accreditation for its specialty pharmacy and mail service pharmacy from Utilization Review Accreditation Commission (URAC), a Washington-based health care accrediting organization that establishes quality standards for the health care industry.
URAC reached its decision after conducting a detailed review considering 146 parameters on BioScrip’s customer service and clinical pharmacy processes. Ensuring BioScrip’s positive approach towards healthcare needs, this award is expected to improve the company’s position in the specialty pharmacy industry.
BioScrip’s specialty pharmacy and mail service pharmacy provide condition-specific clinical management, distribution and reimbursement programs of oral, injectable, and IV drug products for individuals suffering from chronic conditions.
BioScrip, in partnership with healthcare payers, pharmaceutical manufacturers, government agencies and physicians strive to deliver cost effective programs to patients. Presently with all its efficiencies, competencies and high rate of usage of chronic medicines, specialty pharmaceuticals have become the fastest growing segment.
In the fourth-quarter of fiscal 2010, BioScrip recorded a 31.9% year over year increase in total revenue with a 12% rise in pharmacy revenues. However, in recent quarters the company has been witnessing disappointing margins driven by pricing concessions on specialty drugs, rising reimbursement expenses, the new industry-wide AWP standard and poor macro economic conditions. The highly leveraged balance sheet continues to remain a matter of concern for BioScrip.
Moreover, the company faces significant competition in the pharmaceutical healthcare services industry from players like CVS Caremark (CVS), Medco Health Solutions (MHS) as well as many smaller organizations that operate on a local or regional basis.
However, the company has adopted a new strategic assessment policy that might lead to an improved revenue scenario going forward. Also the success at the Critical Homecare Solutions business is expected to improve BioScrip’s competitive position.
The company is focused on expanding its business through sales force expansion and further contractual agreements in new markets. Although several issues have been witnessed by the company in the past few quarters, with the gradual recovery in the economy, the situation could improve.
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