What is SingleCare Business Model?
Using SingleCare, clients may compare prescription medicine costs and acquire them at slashed pricing.
The website offers discounts of up to 80% on drug costs. More than 10,000 different medications are eligible for discounts.
More than 35,000 U.S. pharmacies accept the discount card from SingleCare for usage in the purchase of medications. Albertsons, CVS, Walgreens, Walmart, Kroger, and many more are among the companies that have partnered with us.
The SingleCare app may then be used to locate nearby pharmacies. Using the app, you can see how much a pharmacy will charge for a certain medication.
Customers must have a prescription signed by a physician in order to acquire medications. Their accounts are HIPAA-compliant, and the app securely stores information such as purchasing history.
SingleCare’s Drug Basket function allows consumers to buy in bulk as well, allowing them to further reduce their costs.
You may utilize SingleCare by visiting the service’s website or by downloading one of its mobile applications (available on Android and iOS).
The Story of SingleCare, Inc.
Founded by Rick Bates in 2015, SingleCare is a subsidiary of RxSense and is based in Boston, Massachusetts.
After earning his MBA from Wharton in the mid-1990s, Bates started working in the pharmaceutical sector as a senior manager.
He joined Catalyst Health Solutions in August 2009 as the company’s Chief Operating Officer after a career in the medical and pharmaceutical industries.
Catalyst Health became a Fortune 500 firm under his leadership and ultimately went public. SXC Health Solutions Corp., another pharmaceutical benefits manager, paid $4.4 billion bought the firm in 2012.
For the next two years, Bates remained with Catalyst, but he finally chose to go off on his own. Rather of working for just one company, he worked for two at the same time.
SingleCare is a subsidiary of RxSense, a company that provides cloud-based software solutions for pharmaceutical businesses, as previously indicated.
After almost two years of development, SingleCare was finally made available to the public in the summer of 2015. With the passage of the Affordable Care Act, which led to Medicaid expansion and guaranteed issue for minimal essential coverage, this business became a reality.
As a result, SingleCare was out of the running. However, CEO Bates decided to forgo venture capital funding (and thus publishing inflated news). Opting for “long-term sustainability” was his goal.
OptimizeRx is a prominent aggregator of sponsored services in the electronic health records (EHRs) market that SingleCare plans to form agreements with in the next years.
As a result of the company’s steady expansion, SingleCare has been able to make strategic investments, such as the November 2019 introduction of a mobile app and new services like Drug Basket.
This first national advertising campaign was made possible thanks to the cash that SingleCare obtained from Parthenon Capital in May of 2020. It engaged Martin Sheen, a well-known actor, to appear in many of the company’s TV ads.
Coronavirus pandemic in particular contributed to the company’s financial success. SingleCare is launching a home delivery service in November 2020 as a way to better serve its consumers. As the market for medication distribution started to heat up, this was nearly a requirement. For example, in May 2019, Amazon purchased PillPack for $750 million, followed by a number of subsequent acquisitions.
It now employs more than 200 employees and works with more than 35,000 pharmacies throughout the country, helping its clients save more than $1 billion in the process.
How Does SingleCare Make Money?
The pharmacies that SingleCare partners with pay referral fees, which are the primary source of revenue for the organization.
There are more than 35,000 pharmacies that SingleCare works with, including CVS and Kroger as well as Walgreens and many more.
When a voucher is used, the referral fees are paid out. The coupon card, on the other hand, cannot be used in combination with insurance and may only be used to make cash payments.
Various features have been introduced to SingleCare in the past to persuade consumers to buy. There are a variety of features available, such as home delivery (via GeniusRx) and pricing charts.
It also collaborates with other companies to open-source its product in addition to selling these pharmaceuticals via its own platform. With firms like Properi-Key and United Way Services of Northern Columbiana County, it has been able to serve its members with a wide range of services and products.
Because of a multitude of factors, SingleCare is able to provide savings of up to 80%. To begin with, the amount a medicine will be sold for on the open market is a small fraction of what it costs to make it.
Customers purchasing with cash are paid what pharmacies term the “usual and customary” (U&C) retail list price. Generic medications, in particular, are subject to wide pricing variations among pharmacies.
In most cases, the U&C fees are astronomical compared to the real cost of the medication. As a result, pharmacists are able to reach clients with prescription drug insurance via the usage of organizations known as Pharmacy Benefits Managers (PBMs).
Because the PBM won’t pay a pharmacy more than its U&C list price, pharmacists are forced to raise their U&C pricing over the maximum reimbursement they may get from any payer.
PBM network charges are much lower than the U&C pricing, allowing competitors like GoodRx to take advantage of these lower rates. To get access to insurance payers, PBMs need pharmacies in their network to accept discount cards. As a result, the PBM pays GoodRx rather than the pharmacy itself.
Unlike PBMs, SingleCare works directly with pharmacies, eliminating the need for a middleman. SingleCare does not experience the same price pressure as with platforms like GoodRx (which also implies that SingleCare is typically more costly as it can’t tap into the PBM network rates) as a consequence of this. Because of this, SingleCare exclusively takes cash and does not accept insurance payments.
Besides attracting new clients, the pharmacy may also cross-sell more items to existing customers. Walmart, which places its pharmacy in the most prominent retail areas of its supermarkets, is a good example of this kind of chain store.