Excellence in Pharmacy Services . . . It’s Yours with MAXOR

®

Maxor is uniquely qualified to provide the information systems, purchasing, operational and financial leadership to take your ambulatory pharmacy services to the next level.

The cornerstone of our pharmacy management services is great business sense and a willingness to explore and develop new business opportunities for you. This entrepreneurial approach to the business of pharmacy enables us to drastically improve the quality, efficiency and cost-effectiveness of your pharmacy services.

Reasons to incorporate an on-site pharmacy into your

benefits programs:

• Completelytransparent“pass-through”pharmacyprogram• Drugacquisitioncostsavings• Cost-effectivedrugutilization• Formularycompliance

Uniquely Qualified Consulting & Management Services

Maxor provides pharmacy management, staffing, leadership, information systems and purchasing knowledge to a multitude of healthcare providers, with expertise across all facets of pharmacy practice. Our expertise in 340B purchasing, workflow and pharmacy design will enable you to improve the quality and efficiency of medication delivery.

We are confident that with Maxor as a partner, you will achieve an unparalleled level of patient care, cost effectiveness and profitability in ambulatory pharmacy operations.

We will work collaboratively with you to evaluate existing systems and policies, make recommendations for improvement, and then implement effective changes. Our strategy for providing significant savings to clients includes:

• Increasecaptureofexistingcommerciallinesofbusiness• Developaspecialtypharmacyprogram• Decreasemedicationcoststhroughcost-effectivemedication use processes• Improveefficiencyandreduceoverheadcosts

Information Technology and SupplyMaxor will provide ongoing 24-hour corporate support through our Information Technology and Supply personnel.

• Maxor’sITandSupplypersonnelwillinterfacewiththe pharmacies on a daily basis, by both telephone and e-mail.

• OurrobustInformationTechnologydepartment with systems administrators and supply analysts, software developers and project managers, provides secondlevelsupporttotheMaxorHelpDesk.

• Maxor’sSupplyDepartmentwillpurchasealldrugsforyou through our proprietary procurement system to ensure that your purchases are the most cost-effective medications and that inventory is tightly controlled.

• Ourprocessofauditing,reconcilingandsearchingfor the best possible prices will enable you to save significant dollars in drug purchases.

Accessible & Dedicated Corporate Support

Accounting, Human Resources and Contracting Departments • WewilldesignateaDivisionControllerwithinourAccounting Departmenttoserveastheprimarycontactforyouraccountingissues.

• OurHumanResourcesDepartmentwillhandleallrecruitment, hiring and training for pharmacy personnel.

• OurContractingDivisionwillcoordinateallthirdpartycontracting, credentialing and accreditation.

• PharmacypersonnelcanbeMaxoremployeesoremployedbyyou.

• Ourmanagersgivetheemployeesthetraining,knowledge and motivation they need to succeed in their positions.

• WebeginwiththoroughPoliciesandProceduresasafoundation for all training.

• Wedevelopcomputer-basedtrainingprograms,educationalreadings, competencies and one-on-one and group training to improve the knowledge and performance of employees.

Members of Maxor corporate management use a combination of communication, site visits and reporting tools to ensure adequate inventory control. Our managers communicatewiththeDirectorofPharmacyandpharmacymanagersonafrequentbasis to assure proper inventory control policies and procedures. These policies and procedures are observed and verified during routine site visits.

The following audit reports are conducted on a quarterly basis by our Supply and AnalystDepartments:

• DailyOrder• SummaryandDetailedPurchases• PurchasesversusDispenses• Mispriced• InventoryTurns• Inventory• InventoryPosting• InventoryAdjustment• Unsold

Detailed & Accurate Inventory Control

Timely and accurate reporting is a key component for you to evaluate and participate in the management of your pharmacy system.

The inventory control reports help serve as a metric of success for our procurement and inventory control systems, and are also available throughMaxor’senterprisereportingsystem.Assuch,thesereportscanbe requested on an ad hoc basis via the Internet or scheduled to e-mail daily to pharmacy managers, accounting staff and Maxor corporate management.Throughtheenterprisereporting“requestor,”userscanspecify any number of report parameters and query data for a specific date,store,controlledsubstanceclass,NDC,dollaramount,individualuser, etc. These reports facilitate compliance with State Board of Pharmacy law,FederalDEAregulationsand340Bregulations.

Maxor has a decade of experience in implementing 340B pharmacies and pricing programs. From procurement to 340B price monitoring, and every step in-between, we have a proven track record of success when it comes to ensuring that your programs are set up and managed according to all applicable laws and regulations.

Maxor has the unique capability to electronically monitor and retrospectively auditwholesaleraccountstoensurethatanorganizationisreceivingaccurate340Bcontractpricing.Arecognizedexpertinthefieldof340Bpricemonitoring,we also have the ability to identify easily overlooked errors, such as incorrectly loaded pricing at the wholesaler level and eligibility conflicts from the manufacturer.Anymoniescollectedorcreditedasaresultoftheseauditswouldbe credited to your wholesaler account.

Maxor has a long track record of success to passing regulatory inspections conductedbyJCAHO,theStateBoardofPharmacy,AHCAandtheDepartmentofDefense.AspartofMaxor’spharmacybenefits,retailpharmacyandmailorderpharmacyservicescontractwiththeDepartmentofDefense,extremelyin-depth records are required, as well as audits and site visits conducted at all MaxorpharmacylocationstoensurecompliancewithDoDregulations.

340B Pharmacy Management

Benefits of Maxor’s 340B Pharmacy Management• Assistanceinsettinguptermsof“patient”definition• Evaluatetheuseofcontractpharmaciesorhospitalpharmacies,

as well as the option of obtaining a retail pharmacy license• Overallevaluationofcontractpricing• Updated,auditablerecords• Compliancewithalllawsandregulations-Havingmanaged340B

programs since 2002, we have extensive knowledge of the stringent record keeping requirements.

• Shipto/billtoprocedures• Reducedcostofpharmaceuticals• Expandedpharmacyservicesforpatients• Reviewtheeligible340BCoveredEntitiesintermsofpotentialsavings

from the 340B program• Allsavingswillbepassedontothepatientand/orhealthsystem

The best opportunity for revenue and savings is to operate an outpatient pharmacywhichisownedbytheCoveredEntity.Notonlywouldthispharmacybe able to fill eligible prescriptions for employees and other health plan members using 340B priced product, but it would also be able to fill for patients and accept payments from other third party payers.

Third Party ContractingMaxoremploysanin-houseContractingDepartmentresponsibleforPBMcontracting.TheContractingDepartmenthasbeenabletosecurecontractswithmorethan 99% of the PBMs in the marketplace. Significant success and expertise has been made providing specialty medications toMedicarePartDrecipients.Wealsoprovidespecialtymedications to those PBMs who do not restrict specialty drugs to their in-house pharmacies.

Reimbursement of specialty drugs is much different from typical pharmacy claims. PBM contracting does not cover all payors. Many plans, including Medicare, require certain specialty medications to be billed as a medical claim. Our ContractingDepartmenthasrelationshipswithmedicalpayorsand can contract for your pharmacies to have access to these plans.TheContractingDepartmentalsohasrelationshipswithcharity foundations, manufacturers and indigent programs to obtain additional assistance for specialty medications.

Maxor is strongly committed to efficiently managing on-site pharmacies. We believe that on-site pharmacy programs as part of a health benefit plan only work effectively when coupled with a transparent Pharmacy Benefit Management (PBM) program and the appropriate clinical pharmacy services. Maxor offers its PBM services to you in conjunction with the management of an on-site pharmacy.

There are four major benefits of incorporating an on-site pharmacy

into your pharmacy benefit programs:

• Acompletelytransparent“pass-through”pharmacyprogram

• Drugacquisitioncostsavings

• Costeffectivedrugutilization

• Formularycompliance

Completely Integrated Pharmacy Management & PBM Services

Maxor’s model of integrating the on-site pharmacy, PBM services and clinical pharmacy component provides a comprehensive pharmacy programwithtotaltransparencytoyou.UnderourCompleteDisclosurePricing program, you receive 100% of discounts and rebates from drug manufacturers on all prescriptions filled in the retail network and in-house pharmacy, net acquisition cost pricing on all drugs sold in the in-house pharmacy, and pass-through pricing on all drugs purchased in the retail network. There are no undefined spreads or margins, no hidden sources of revenue, no undisclosed rebates or discounts and no hidden fees for “additionalservices”paidtoMaxor.Employeesmaypickupprescriptionsat the in-house pharmacy, or have it conveniently delivered to their homes or via inter-company mail.

The on-site pharmacy program will allow you to purchase drugs on a net acquisition cost basis, thereby eliminating the profit margin that privately ownedpharmaciesarecurrentlymakingonthehealthplan.Additionally,Maxor’s proprietary purchasing system automatically checks to be certain you are receiving the correct contract pricing on every purchase.

Anothermajorareaofsavingsoccursfromthedevelopmentofpharmacy-drivendrugutilizationreviewandinterventionprograms.Maxor’sexperienced clinical pharmacy team continually monitors member utilization,andthenimplementscostsavinginitiativestoaddressmajorcost reduction opportunities. When a plan’s in-house pharmacy and PBM work in conjunction, programs such as pill splitting, generic substitution and brand substitutions to achieve formulary compliance are much more successful, and these programs can achieve huge savings for the health plan.Forexample,inatightlycontrolledenvironmentwithanintegratedin-house pharmacy and PBM, Maxor has been able to achieve as much as a

90% in-house pharmacy capture rate.

320 S. Polk Street, Suite 100

Amarillo,Texas79101

(806)324-5400•(800)658-6146

Fax:(806)324-5495

www.maxor.com

We welcome the opportunity

to discuss benefi ts in more detail and

to work with you in the development

of a comprehensive, cost-driven

pharmacy program. Since 1926,

we have a proven track record in all

aspects of pharmacy services and

are eager to apply our pharmacy

experience to assure a successful

outcome for you.

®