Re: TRC’s efficiencies of scale
On a recent investor presentation, Medco said the above can’t be done because Medco’s disease-specific TRC’s have efficiencies of scale that even a large hospital group can’t match. I presume you disagree with this claim.
Medco is correct for traditional pharmacies. I'm talking about placing in-house, closed door pharmacies in medium to large employers main employment centers. Because the pharmacies are not open to the general public, they are able to purchase at a better trade of sale, or special contract pricing. While this reduced price may or may not always be at a lower cost than the large PBM, ALL of the savings goes to the sponsor as opposed to being, at best split with the PBM.
I would not expect Medco to admit to this as the above concept is still not widely accepted, and it was their presentation.
RPh