Reducing Costs Through “Medication Optimization”
January 17, 2014
Denver based healthcare startup, RxREVU is on a mission to reduce prescription drug costs. Based on three years of efficacy research by the team’s Medical Director, Doctor Kevin O’Brien, RxREVU provides twelve different ways for people to save money on their medications.
“Right now, millions of people are struggling to afford their medications, and pharmacy benefit costs are skyrocketing for enterprise businesses and insurance companies,” says Carm Huntress, RxREVU’s Chief Executive Officer. “We think it’s time to solve these problems,” he says.
Their techniques to reduce medication costs include: identifying therapeutic alternatives with similar effects, substituting generics wherever possible, pill splitting higher doses to achieve volume discounts, splitting brand name combination drugs into generic components, identifying over the counter drugs with similar effects, along with several other proprietary techniques.
RxREVU’s elixir for reducing medication costs, a process they call “medication optimization,” is also based on their unique ability to mine tremendous volumes of clinical studies for research that determines whether one drug is as effective as another. All of their research is based on peer reviewed medical journals, but historically, it’s been nearly impossible to dig through the mountains of clinical data these journals publish.
“By using advanced data mining techniques, we discover ways for people to save money on their medications that have previously gone unnoticed,” Huntress elaborates. “We’re on the cutting edge, and we’re not making any friends in the pharmaceutical industry,” Huntress says with a smile. Indeed, the New York Times recently reported on the hard-sell tactics used by drug companies to promote their expensive brand name drugs to doctors, including the use of kickbacks, lavish gifts, and trips.
RxREVU is positioning their business as a data and healthcare analytics company, and has opened their doors to healthcare application developers. “Our medication savings dataset can help patients and payers reduce their medication costs, often quite significantly,” says Huntress. Their recent analysis of claims data from a large, well-known insurance provider revealed potential savings of $387 million dollars across a population of 10 million people, a number that is raising eyebrows among those in the healthcare transparency movement.
Also of note, is the company’s acceptance into healthcare accelerator, Startup Health. Out of 1,200 healthcare startups, only 10 were selected in Q4 of 2013 to participate in the exclusive incubator’s three year program. The company is currently raising capital on the popular fundraising website, Angel List (angel.co/rxrevu). Healthcare applications interested in licensing RxREVU’s data can reach the company directly through their website (www.rxrevu.com).