RxHub and SureScripts plan to consolidate their operations, forming a single, secure, U.S. network for e-prescriptions and the exchange of health information.
The boards of directors of both organizations approved the cashless merger. SureScripts’ owners, the National Association of Chain Drug Stores (NACDS) and the National Community Pharmacists Association (NCPA), will retain 50 percent ownership as will RxHub’s owners, CVS Caremark, Express Scripts and Medco Health Solutions.
The new organization will remain privately owned and continue to operate under a cost-recovery model as a low-cost health information utility.
Initially, the new organization will be jointly managed by the acting CEO of RxHub, J.P. Little, and the acting CEO of SureScripts, Rick Ratliff. The new board has begun a process to select a CEO and has retained Spencer Stuart to conduct a nationwide search.
John Driscoll, president of New Markets, Medco, and Bruce Roberts, executive vice president and CEO at NCPA, will serve as co-chairmen of the board of directors through 2009. The co-chairmen will rotate on an annual basis to include one co-chair representing pharmacy benefit managers and the other representing retail pharmacies. The new six-member board includes a single director each from CVS Caremark, Express Scripts, Medco Health Solutions, NACDS and NCPA. The sixth member of the board will be designated by NACDS and NCPA.
The new organization will have more than 75 employees and will maintain its existing office locations in St. Paul, Minn., and Alexandria, Va. In the interim, the company will be referred to as SureScripts-RxHub, according to both companies.