ZorroCard Round

Hey all,

I was especially surprised that I haven’t seen more about Barron’s great investigation into PBMs role in the opioid crisis. It probably got lost in all of the other negative news about the big PBMs. Enjoy the rundown!

Best,

Jacob Brody (Co-Founder & CEO, ZorroCard)

Barron’s and (PBMs’ Role in the Opioid Crisis): In news that shocks precisely no-one, pharmacy benefit managers (PBMs) like CVS Caremark, Express Scripts, and Optum Rx made hundreds of millions in rebates from Purdue Pharma during the height of the opioid epidemic. These secret deals, now under scrutiny, helped keep OxyContin on insurance plans, despite the escalating crisis. PBMs say these rebates lower costs, but critics argue that they were more about boosting profits than protecting public health. Full Article.

Drug Channels and (Plan Sponsors and PBM Transparency): Adam Fein discusses why, despite dissatisfaction with pharmacy benefit managers (PBMs) over transparency issues, plan sponsors rarely switch models. He points out that many sponsors prioritize cost savings over transparency, even as complaints about rebate handling and complex revenue models grow. Smaller PBMs show slightly better satisfaction ratings than the large ones, but the overall lack of change indicates a systemic reluctance to shift to more transparent solutions. Full Article.

Hospitalogy and (CommonSpirit Health 2024 Strategy Breakdown): Blake Madden breaks down CommonSpirit Health’s 2024 strategy. He covers how the largest pure-play non-profit health system is undertaking a portfolio realignment, focusing on hospital acquisitions and ambulatory expansion, particularly in key markets. Despite revenue growth and operational improvements, the nonprofit struggled with a -1.5% operating margin due to high expenses, but strong investment returns bolstered its financials. Strategic priorities include bed expansions, a shift to a single EHR system (Epic), and investments in digital infrastructure. Full Article.