HomeMy WebLinkAboutCORRESPONDENCE - RFP - P682 BENEFITS (3)Administrative Services
Purchasing Division
City of Fort Collins
September 21 1999
Mr Stuart L Bascomb
Express Scripts
14000 Riverport Drive
Maryland Heights MO 64043
Re #P-682- Prescription Benefits
Dear Mr Bascomb
The City of Fort Collins wishes to extend the agreement term for the above captioned proposal per
the existing terms and conditions The term will be extended for one (1) additional year January
1 2000 through December 31 2000
If the renewal is acceptable to your firm please sign this letter in the space provided and return it
to the City of Fort Collins Purchasing Division P O Box 580 Fort Collins CO 85022 within the
next fifteen days
If this extension is not agreeable with your firm we ask that you send us a written notice stating
that you do not wish to renew the contract and state the reason for non -renewal
If you have any questions regarding this matter please contact Carl Yost Buyer (970) 416-2247
Sinrely((�� ' ) D,�
i LJam s B O Neill II CPPO
Director of Purchasing and Risk Management
cc Vincent Pascale Human Resources
Proposal 682
Signature
,a/ti l9q
Date
(Please indicate your desire to renew Proposal #P-682 by signing this letter and returning it to
Purchasing Division within the next fifteen days )
256 W Mountain Avenue PO Box 580 • Fort Collins CO 80522 0580 0 (970) 2216775 • FAX (970) 221 6707
To James B OlNeill City of Fort C From Express Scripts
9 17 99 9 OOpm p l of 1
EXPRESS SCRIPTS
Charting the !orate of Pharmacy
September 17 1999
James B O Neill
City of Fort Collins
256 W Mountain Avenue
Fort Collms CO 80522 0580
Dear James B O Neill
Over the past several days as Hurricane Floyd threatened the mid Atlantic states of our East
Coast call volume in our Express Scripts Call Centers increased dramatically As a result some
of your members and their families may have experienced delays in reaching our Call Center
Representatives The threat of extreme weather along the Eastern U S is now abating and call
volume is decreasing However we want you to know the proactive measures we implemented
and our plans for dealing with similar situations in the future to minimize delays
On Monday and Tuesday our call volume increased 15% to 20% at many of our Call Centers
Most of the increase related to requests for early refills due to mandatory evacuations or inquiries
about provider pharmacies in areas to which members were evacuating
Through Wednesday as the United States Weather Bureau tracked the likely progress of the
storm Express Scripts anticipated to the extent possible the geographical areas for which
reasonable approval of early refills would be warranted In areas targeted for evacuation we
alerted our network provider pharmacies to fill such requests
At about 2 p in on Thursday we were forced to close our Call Center in Horsham, PA, near
Philadelphia This was done for the safety of our people and to comply with an evacuation order
issued by county authorities
The Horsham Call Center remained active through our automated system Callers received an
explanation of the situation and those with urgent needs were rerouted to our other centers
Those without urgent needs were encouraged to call back the next day Rerouted callers were
advised of the possibility of delay
As you know the threat posed by Hurricane Floyd has abated and we are returning to normal
volume in our Call Centers We regret any mcorivemence experienced by your members during
the past several days Providing superior service is our goal —which is why we also want you to
know that we are continuing to analyze the situation and developing proactive protocols for future
emergencies in order to further reduce instances of mwirvenience to your members
Sincerely
David A. Lowenberg
Chief Operating Officer Express Scripts
To James B O'Neill City of Fort C
From Express Scripts 8 31 99 8 03pm p 1 of 9
4 &PM88 Script'
August 31 1999
James B O Neill
City of Fort Collins
256 W Mountain Avenue
Fort Collins CO 80522 0580
Dear James B O Neill
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Express Scripts is pleased to announce an agreement that voll unite the resources of yourPharmacy com with those
of PlanetRx com This agreement will significantly expand and accelerate the capabilities of our online member
services It also enables us to offer you a newpharmacy in our network accessible through the Internet that will both
focus on the dispensing of prescriptions and offer a full line of over the -counter products
yourPharmacy com and DrugDigest org will continue to be owned and operated by Express Scripts and provide
access to Express Scripts services and health information Express Scripts w it retain responsibility for healthcare
content on all sites including PlanetRx com used by Express Scripts members We carefully retained control over all
content your members will see on PlanetRx cam to ensure that the Internet site voll support your plan design and
formulary decisions Express Scripts expects to continue to invest heavily in the Internet to bring our plan sponsors
and their members comprehensive Internet services —Internet services which help manage the pharmacy benefit
By consolidating Express Scripts strengths with those of PlanetRx com we are able to bring to your members the
best possible online pharmacy experience Express Scripts is recognized as a leading PBM wth extensive
experlence In clinical and pharmacy management and PlanetRx com brings to the agreement Its reputation as the
most highly rated pharmacy online Their management team has very strong credentials in distribution and
operations and PlanetRx com is generally regarded as one of the best a commerce sites on the Web in terms of
overall operational excellence
The integration of services resulting from this agreement will bring greater convenience lower prices and better
quality As a result we are confident that you and your members will find we offer the very best in online services
The accompanying diagram illustrates the relationships between our sites You may access our online services
through three portals through Express -Scripts com or yourPharmacy com as before —and now through
PlanetRx com as well Each site will provide links to the others and easy navigation Whatever Web address you use
to access our sites I can assure you of a satisfying customer experience
Sincerely
Barrett Toan
President & CEO
Express Scripts Inc
Enclosures
1 Press release
2 Schematic overview
To James N O'Neill City of Fort C From Express Scripts 8 31 99 8 03pm p 2 of 4
For immediate release
Contact
George Paz Chief Financial Officer
Diana Baumohl VP Investor Relations
(314) 770 1666 x67487 or x67333
EXPRESS SCRIPTS AND PLANETRX CON ANNOUNCE
INTERNET PHARMACY AGREEMENT
Combined Strengths Significantly Accelerate Express Scripts Online Capabilities
ST LOUIS August 31 1999 Express Scripts Inc (NASD ESRX) the nation s largest Independent
pharmacy benefit management firm today announced a definitive agreement with PlanetRx corn Inc The
agreement will give Express Scripts a 19 9 percent ownership share in PlanetRx com which will serve as the
exclusive Internet pharmacy for Express Scripts 36 million members
Under the agreement Express Scripts will transfer the a commerce assets of its wholly owned Internet
pharmacy subsidiary yourPharmacy com to PlanetRx com simultaneously with an initial public offering by
PlanetRx com
PlanetRx com will pay Express Scripts certain fees in excess of $11 million annually and will provide
additional financial support for the further development of Express Scripts other Internet capabilities for five
years with a potential five year extension Express Scripts will be PlanetRx com s preferred partner for
pharmacy benefit management services and will receive one seat on the PlanetRx com board of directors
Express Scripts and PlanetRx com together have created America s premier Internet pharmacy delivering
immediate value to our members who can use their funded pharmacy benefit plan to buy prescriptions more
conveniently online said Barrett Toan president and chief executive officer of Express Scripts
PlanetRx com s excellent brand awareness technology and distribution infrastructure allow Express Scripts
to accelerate our Internet pharmacy initiative Toan continued This relationship enables us to focus on
delivering excellent pharmacy benefit services and health information to our clients and their members
Under the agreement Express Scripts will promote PlanetRx com as Express Scripts exclusive Internet
pharmacy to fill prescriptions and market other health and wellness products to Express Scripts plan
members for five years with a potential five year extension Express Scripts which will retain ownership of
the domain name yourPharmacy com will link PlanetRx com to yourPharmacy com and actively promote
PlanetRx com Express Scripts privacy policies will be implemented by PlanetRx com for Express Scripts
plan members
William Razzouk chairman and chief executive officer of PlanetRx com said Express Scripts leadership as
a pharmacy benefit manager its clinical expertise and its objective disciplined approach to prescription
formulary development make Express Scripts the ideal partner for us
We re uniting the benefits of PlanetRx com s strong commerce capabilities and Express Scripts strong
content expertise to create an Internet community With outstanding information service quality and
convenience for consumers seeking reliable information and prescription medications amid the growing drug
Industry he continued
To, James h 0198111 City of Fort C From Express Scripts 8 31 99 8i83pm p 3 of 9
Express Scripts will co -brand and market PlanetRx com The PlanetRx com site will contain prescription
related and other healthcare content which will support Express Scripts client benefit designs and formulary
decisions
Express Scripts will use a portion of the annual fees received to promote the use of on line services to its
members and to develop pharmacy benefit management related Internet content to assure that members
receive the products and services requested by plan sponsors
Express Scripts plans to use the cost method of accounting for the transaction and anticipates reporting a
one time net gain in the fourth quarter of 1999 upon the transfer of yourPharmacy com assets However for
tax purposes the asset transfer transaction will be tax free
Express Scripts Inc is the nation s leading Independent full service pharmacy benefit management (PBM)
and specialty managed care company Through facilities in seven states and Canada the company serves
thousands of clients throughout North America Including managed care organizations insurance carriers
third -party administrators employers and union sponsored benefit plans Express Scripts Is headquartered
in St Louis Mo More information can be found at http lAwm express scripts com which includes expanded
investor information and resources
PlanetRx com Inc (www PlanetRx com) a leading Internet healthcare destination for commerce content
and community delivers a convenient personalized and informed health and beauty shopping experience
With products ranging from prescriptions to personal care items to the latest medical information
PlanetRx com gives consumers the ability to manage their own healthcare in a convenient and secure
environment Headquartered in South San Francisco the company operates its own pharmacy and
distribution center in Memphis Tenn to ensure the highest quality customer care
This press release contains forward looking statements including but not limited to statements related to
the company s plans objectives expectations (financial and otherwise) or Intentions The company s actual
results may differ significantly from those protected or suggested in any forward looking statements Certain
factors relating to the announced transaction that might cause such a difference to occur include but are not
limited to inability to consummate the transaction on its announced terms risks associated with the
completion of the PlanetRx com Inc public offering the risks associated with ecommerce operations and
the receptivity of clients to the companies co -marketing efforts Other factors that may impact these forward
looking statements include but are not limited to (q competition including price competition competition in
the bidding and proposal process and our ability to consummate contract negotiations with prospective
clients (I) the possible termination of contracts with certain key clients or providers (m) the possible
termination of contracts with certain pharmaceutical manufacturers changes in pricing discount rebate or
other practices of pharmaceutical manufacturers (iv) adverse results in regulatory matters the adoption of
adverse legislation or regulations more aggressive enforcement of existing legislation or regulations or a
change in the Interpretation of existing legislation or regulations (v) developments In the healthcare Industry
including the impact of increases in healthcare costs changes in drug utilization patterns and introductions of
new drugs (vq risks associated wrath the Year 2000 issue (vu) other risks described from time to time in our
filings moth the Securities and Exchange Commission The company does not undertake any obligation to
release publicly any revisions to such forward looking statements to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events
##q
To James B 019e111 City of Fort C From Express Scripts 8 31 99 8 03pm p 4 of 4
EXPRESS SCRIPTS, INC.
Internet Capabilities*
www Drug (test org
Focused on Drug
and Medical
In formation
• Here s the latest information an new
asthma treatments for my son
• How does that new herbal remedy work?
Pcaduig the AL ssful IPO of PlarictRx cum
www Express -Scripts com
www yourPharmacy com
Focused on
Member Services
vo
• A map that shows the pharmacy
closest to my office is only
two miles away
• Before I go to the pharmacy I wilt
check my co pay for this prescnptron
• Can you please give me the status
of my order+
www Planeth com
Focused on
Customer Ordering
and Fulfillment
0•
• I can order my go day and
yo day prescriptions online
• What a convenience to purchase
shampoo and aspirin through
the Internet