By Christine Imbs
It's hard to imagine a Fortune 500 company, especially one ranking in the top 150, as being one of the region’s best kept secrets. But Express Scripts, with its headquarters on the UMSL campus, is making its mark on the region.
One of the largest pharmacy benefit management (PBM) companies in North America, Express Scripts employs over 11,500 people nationwide, 3,000 of those in St. Louis. Its national clients include U.S. Steel and the U.S. Department of Defense, which alone employs over 10 million people. Locally its clients include Graybar, Enterprise Leasing, Edward Jones, and Smurfit Stone to name a few. And in 2007, the company earned $22 billion in revenue. So why don’t more people know about Express Scripts?
“The PBM industry has evolved over the years, but our core model has not changed,” explains Holmes. “We have a model of alignment. We don’t make money unless we save our clients and patients money. I think that is what has helped us to remain successful, even now.
“We’re a business-to-business organization, so you don’t see any advertising,” explains CAO Michael Holmes. “Plus I don’t think this organization has ever sought out publicity. We just focus on our core competencies and doing what is right.”
“People want to save money, especially in this economy,” says Larry Zarin, Chief Brand Officer, Marketing and Corporate Communications. “So this is something that’s gaining a lot of traction.”
Without a doubt, Express Scripts is saving its clients money and a lot of it. For example, since 2004 its TRICARE Pharmacy Program with the U.S. Department of Defense (DoD) has saved the DoD more than $414 million above contractually guaranteed retail pharmacy savings. Since 2007, it has saved the DoD $17.1 million through its home delivery Member Choice Center program. In addition, its 97 percent beneficiary satisfaction rating is the highest service rating for any contractor serving the DoD.
In April 2009 Express Scripts announced that they have signed a definitive agreement with WellPoint to acquire its NextRx subsidiaries for $4.675 billion.
Recently the company introduced a new pilot program involving more than two dozen companies led by Lowe’s, the second-largest home improvement retailer in the world. Called Select Home Delivery, the program provides direct savings to both companies and their employees by optimizing the use of home delivery for prescription medications. It’s expected to save participating companies millions of dollars in healthcare costs.
Zarin says that the Select Home Delivery program doesn’t require mandatory participation and no changes were made in the plan’s design or co-payments. What makes it different, and therefore successful, is the application of behavioral economic principles.
“The program applies some very powerful psychological principles that have been proven to affect consumer decision-making and behavior,” he says. “Using this behavior-centric approach we’re able to provide better health and value to our plan sponsors and members. In a sense, this approach feeds into our business model of alignment—looking at the world through our client’s eyes.”
It’s apparent that in the PBM industry, Express Scripts is an organization that gets things done. But a closer look at the organization reveals that getting things done doesn’t just apply to business. Not only is Express Scripts a very successful home-grown company, but it’s one that’s very involved in the community. So much so, that even its decision to relocate to the UMSL campus was done with the community in mind.
“It’s no accident that we moved our headquarters to North St. Louis,” he explains. “We thought by serving as an anchor in the community we could help revitalize this area. As a result, we’re seeing new growth and new businesses popping up all around us. And our partnership with UMSL has been very successful.”
The move to the UMSL campus made Express Scripts the first Fortune 500 Company to have its corporate headquarters on a university’s grounds. Holmes says the partnership allows the company to have the progressive thinking of the university environment, while providing the University some valuable interaction with the business world.
“Not only are we involved in courses here on campus, but we’re running an executive MBA program on site with UMSL professors,” he says. “Also, we’ve been able to use their research capabilities for projects. And because we’re so visible to the student population, it’s been great for recruiting. So it’s been a very worthwhile partnership.”
In addition to its UMSL connection, Express Scripts also partners with local schools, most of which serve underprivileged students from elementary school through high school. For example, the company helps support the after-school enrichment program at Cool Valley Elementary School, the math and science program at Normandy Middle School, and the college prep and after-school programs at McCluer South-Berkeley High School.
Taking their education focus a step further, in 2008 Express Scripts teamed with Barnes-Jewish Hospital and the St. Louis College of Pharmacy to introduce the BESt Pharmacy Summer Institute for multicultural high school students interested in a pharmacy career. Currently, the pilot program has students representing 13 high schools in the St. Louis area: Berkeley, Cardinal Ritter, Clayton, East St. Louis, Hazelwood Central, Gateway, Ladue, Lutheran North, McCluer, Metro, Normandy, Parkway North, Parkway South, Pattonville,
St. Elizabeth and University City.
“In addition to our education focus, we also drive four major charitable campaigns here that our employees really get involved in—United Way, March of Dimes, MS 150 Run, and Susan G. Komen. And that’s in addition to charities they take on themselves,” Holmes says. “So we are having an impact across the board. It may be a quiet impact, but it’s an impact all the same.”
