HMS Makes Strategic Investment in MedAdvisor
07 October 2019 - 9:51AM
HMS Holdings Corp. (Nasdaq: HMSY), a leading U.S.-based provider of
healthcare technology, analytics and engagement solutions, today
announced that HMS, through a subsidiary, will make a strategic
investment of $7.5 million (US) in ordinary shares of MedAdvisor
Limited (ASX: MDR), Australia’s leading digital medication
management company. HMS intends to fund the investment with
cash on hand. Upon completion of the transaction, HMS will hold an
approximate 13% ownership stake in MedAdvisor. In connection with
its investment, HMS will gain one board seat on MedAdvisor’s board
of directors, which will be occupied by Jeff Sherman, Chief
Financial Officer of HMS.
This investment also marks the launch of a
strategic relationship with MedAdvisor to tackle the global issue
of medication non-adherence. Patient non-adherence to their
medications is a global issue, and improving adherence benefits
patients as well as doctors, and pharmacists and payers. The World
Health Organization estimates adherence to long-term medication
therapies in developed nations to be 50%, and that increasing the
effectiveness of adherence interventions may have a far greater
impact on the health of the population than any improvement in
specific medical treatments.1
MedAdvisor offers an advanced software platform
that helps make medication management easier by organizing all of a
patient's medication and prescription information on the patient's
smart phone, tablet or PC. MedAdvisor connects to each patient's
pharmacy to provide automatic details of the patient's medication
and prescriptions to help them take medication safely, effectively
and on-time. The MedAdvisor app reminds patients when they need to
see their doctor for a new script, reminds them to take each dose
and reminds them when they need to refill their script.
The investment aligns with HMS’ strategy to
evolve its Population Health Management capabilities in the U.S.,
advance growth and foster continued innovation. It is expected to
help MedAdvisor drive its domestic growth through sales and
marketing and further technology development, and accelerate
international expansion through MedAdvisor's partnering strategy in
the US, South East Asia and the UK. For example, MedAdvisor's
partnership agreement with AdherisHealth enables a streamlined
entry into the U.S. market through Adheris’ existing network of
more than 26,000 retail pharmacies reaching over 197 million
patients.
"MedAdvisor’s advanced technology platform is
already having a meaningful impact on helping people manage their
medications safely and effectively,” said Bill Lucia, HMS’ chairman
and CEO. “We look forward to building a highly successful alliance,
pairing MedAdvisor’s platform with our Population Health Management
solutions. We expect this to expand utilization of MedAdvisor's
digital adherence programs across the U.S. through our health plan
customer relationships and in Australia where we have an
opportunity to integrate our patient engagement solutions and
leverage our burgeoning partnerships in that country."
Robert Read, CEO of MedAdvisor, added, "We have
proven that we can deliver a safe, effective and automated solution
to improve medication adherence as well as health literacy for
patients every day. We are excited to partner with HMS on our
journey to create a global digital medication management
infrastructure and a better approach to prescription adherence for
millions of people."
MedAdvisor’s other global partners include Day
Lewis Pharmacy, MedExpress, PDX and Zuellig Pharma, providing an
established operational footprint in the US, Australia and
Asia.
About HMS
HMS advances the healthcare system by helping
payers reduce costs and improve health outcomes. Through our
industry-leading technology, analytics and engagement solutions, we
save billions of dollars annually while helping consumers lead
healthier lives. HMS provides a broad range of coordination of
benefits, payment integrity, population risk analytics, care
management and member engagement solutions that help move the
healthcare system forward. Visit us at www.hms.com and follow us on
Twitter at @HMSHealthcare.
About MedAdvisor
MedAdvisor is a world class medication
management platform that empowers users to more simply manage their
medication and improve adherence. MedAdvisor’s highly automated and
intuitive Australian software system connects users to tools and
education materials from their local/preferred pharmacy. Available
free on mobile and internet devices, the platform also incorporates
a variety of valuable and convenient features including reminders,
pre-ordering of medications and medicines information, which
together improves adherence to chronic medications by over 20%.
Trademarks
HMS and the HMS logo are registered trademarks
of HMS Holdings Corp. and/or its affiliates. Other names may be
trademarks of their respective owners.
HMS Safe Harbor Statement
This press release contains “forward-looking
statements” within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Such statements relate to HMS'
current expectations, projections and assumptions about our
business, the economy and future events or conditions. They do not
relate strictly to historical or current facts. Forward-looking
statements can be identified by words such as “continue,”
“estimates,” “expect,” “intend,” “look forward,” “may,” “strategy,”
and “will” and similar references, although some forward-looking
statements may be expressed differently. Factors or events that
could cause actual results to differ may emerge from time to time
and are difficult to predict. Should known or unknown risks or
uncertainties materialize, or should underlying assumptions prove
inaccurate, actual results may differ materially from past results
and those anticipated, estimated or projected. We caution you not
to place undue reliance upon any of these forward-looking
statements. Factors that could cause or contribute to such
differences, include, but are not limited to: our ability to
execute our business plans or growth strategy; our ability to
innovate, develop or implement new or enhanced solutions or
services; the nature of investment and acquisition opportunities
and strategic relationships we are pursuing, and the successful
execution and implementation of such investments (including
MedAdvisor), acquisitions and strategic relationships; our ability
to successfully integrate acquired businesses and realize
synergies; our ability to comply with current and future legal and
regulatory requirements; and other factors, risks and uncertainties
described in our most recent Annual Report on Form 10-K and in our
other filings with the Securities and Exchange Commission. Any
forward-looking statements are made as of the date of this press
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HMS Contacts:
Investor
Contact: Robert Borchert SVP, Investor Relations
robert.borchert@hms.com469-284-2140 |
Media
Contact:Lacey HautzingerSr. Director, External
Communicationslacey.hautzinger@hms.com469-284-7240 |
1. See the World Health Organization's Essential Medicines and
Health Products Information Portal at
https://apps.who.int/medicinedocs/en/d/Js4883e/7.1.2.html
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