abarcahealth
description
Transcript of abarcahealth
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1www.abarcahealth.com
Jan 27, 2012Ajamu KitwanaKristine CassRobin BoseEnhancing Growth Opportunities
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Agenda
Project Overview and Approach
Findings & Recommendations
Competitive Advantages in Puerto Rico Context
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Agenda
Project Overview and Approach
Findings & Recommendations
Competitive Advantages in Puerto Rico Context
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Pharmacy benefit management (PBM) service provider to health plans, government agencies/programs, employers, unions, pharmaceutical manufacturers, and other clients.• Founded in 2005 as internal PBM for PICA, a Medicare Part D plan in Puerto Rico• Spun off from PICA in 2010• Successful in adding new customers and revenue sources, including administrative services for Mi Salud,
one of PR’s largest health plans
abarca transmits data between health plans and in-network pharmacies to help:
• verify patient eligibility and co-payments• process and adjudicate drug claims• manage drug formulary lists
Proprietary Technology:
RxEngine : claims adjudication softwareRxPlatform : user interface for PBM/client
Range of business intelligence and reporting capabilities
Company Overview
• manage generic substitutions
• provide information on drug utilization
• manage manufacturer rebates
TM
TM
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Organizational Growth # Employees, 2010-2012
abarca has grown rapidly as the team has won new customer contracts
Company Highlights47,000 covered livesPharmacy program administrator for
Mi Salud (1.4 million lives)
Customers2009: 2 contracts (PICA, Mi Salud)2012: 6 contracts
2010 2011 2012
TechnologyClinicalBusiness
2534
59
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Project Inquiry
Market Readiness
Are there opportunities for expansion in PBM services to:
• Colombia ?• Costa Rica ?• Dominican Republic ?• Panama ?• Peru ?
Company Readiness
How can abarca prepare for growth opportunities, including international expansion?
Should abarca expand beyond PR to Latin America?
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Customer Interviews
Company Review
3 of 6 existing customers:• ASES• First Plus• PICA
1 potential customer
Company financials
New business pipeline
Core/ancillary services & technology offering
Internal Interviews
Management Team
Product: • Technology Group• Business Intelligence
Project Management
Pharmacy Network Management
PBM Operations
Business Development and Business Analytics
Account Management
Customer Service
Latin America Country Research
State of Healthcare System
Healthcare Provision
Healthcare Financing
Pharmaceutical Market
Pharmaceutical Regulations
Health Indicators
Anticipated Changes
Business Environment
Approach
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Agenda
Project Overview and Approach
Findings & Recommendations
Competitive Advantages in Puerto Rico Context
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Long Term Focus
Intermediate Focus
Immediate Focus
• Grow market share• Establish market leadership
in Puerto Rico• Grow organization
• Acquire customers outside PR, leveraging PR connections and knowledge of US regulation
• Build global presence while maintaining PR market leadership
Key Findings
Selected Latin American markets lack favorable healthcare infrastructure
Company should consider cost of diverting resources away from local opportunities
Recommended Growth Plan
Team Recommendations
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Customer engagement
Decision support
Team linkages
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Immediate Focus: Suggested Growth Priorities
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How customers feel about relationship with other PBMs
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How customers feel about their relationship with abarca
Customer Engagement
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How customers feel about relationship with other PBMs
1 2 3
How customers feel about their relationship with abarca
[A leading competitor] has its home office in the States…we have to go through so many
layers to get something done.
I like that they are local, not too big, and able to
discuss what is important in Spanish.
Good access to top management, openness,
candor, willingness to help
Customer Engagement
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How customers view tools and data available for decisions
How abarca can help them to make decisions
Decision Support
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1 2 3
abarca two years ago abarca two years from now
Team Linkages
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Agenda
Project Overview and Approach
Findings & Recommendations
Competitive Advantages in Puerto Rico Context
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Puerto Rico competitive advantages that support abarca strategic opportunities
Puerto Rico Advantages abarca health Opportunities
Connection to US Market
Link to Latin America
Healthcare/Pharma Industry Cluster
Educated Talent Pool
• Engage Latin America customers at all levels in Spanish• Draw on cultural ties with Latin America to help penetrate
relationship-based Latin American markets
• Hone strategy through local rivalries; continue to challenge US firms• abarca has built on technology and expertise developed through
Borschow Medical Supply and PICA
• Attract top PR talent educated in PR or elsewhere to stay/return• Leverage startup culture and sexy hi-tech and healthcare industries• Attract global talent that is attracted to US opportunities but appreciate Puerto
Rican culture and climate
• Apply US healthcare expertise to compete in niche US markets• Leverage connections with US based pharmacies and manufacturers• Build on presence and credibility in the US to access LatAm markets
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Lessons Drawn for Economic Development in Puerto Rico
• Newer industries such as those driven by government policies offer a chance to compete with US without being far behind
• PR firms can use language and cultural connections to compete in Latino friendly communities in the US
Puerto Rico Advantages Economic Development Opportunities
Connection to US Market
Link to Latin America
Industry Cluster
Talent Pool
• Spanish capability at executive levels can be an advantage over US firms in professional services
• US ties are also a hurdle to penetrating and understanding Latin American markets
• Encourage local competition• Develop industries that build on existing infrastructure• As LatAm markets develop, bring US expertise with LatAm cultural awareness
• Showcase “hot” PR companies: hi-tech, healthcare, startups, etc.• Target US/PR top talent interested in LatAm development.• Reverse the brain drain: encourage PR students who studied in US to return to
PR
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Questions & Discussion