Third party billers WorkingRx and Third Party Solutions may be for sale. The two pharmacy factoring companies together own the work comp script factoring business, a sector that has been under some pressure lately. According to several industry sources, the owners of both entities (Fiserv for TPS and investment firm Arcapita for WorkingRx) have engaged investment bankers to shop their respective companies.
WorkingRx has been struggling of late; consolidation amongst the pharmacy chains has cost the company some of its business. That coupled with its combative approach to dealing with workers comp payers, and recent legal defeats may have lessened it’s long term prospects.
TPS is part of Fiserv’s work comp pharmacy entity, that also includes DirectCompRx and transaction processor P2P. The word is Fiserv is shopping both TPS and DirectCompRx. TPS revenues are rumored to be near a half-billion dollars, but margins are thin.
What does this mean for you?
Potentially consolidation in the TPB industry, or if they are acquired by PBMs, a possible new approach to first fill.
I am a Workers Compensation Professional. thanks.
Any information / links you could provide to the recent legal defeats that are referenced in the article?
If you’re in technology and you’re still working on the same
technology you were working on 18 to 24 months ago, and you haven’t
been exposed to something new, it might be time for a change.