"This agreement will bring Xerox's proven LNK_NR_ConsultingServices and processes to Medco to help transform the entire document lifecycle - delivering a dramatic improvement in productivity, reduced costs and a more efficient way of doing business with customers," said LNK_NR_TomDolan_Bio, president, Xerox Global Services.
Under the seven-year agreement, terms of which were not disclosed, Xerox Global Services consultants will implement document-related strategies to streamline Medco's internal document processes and to enhance the quality and impact of the millions of communications produced yearly for Medco clients, members and patients.
"This initiative with Xerox represents Medco's long-standing belief that leveraging advanced technology is critical in improving the quality and delivery of service and extracting expense from the healthcare infrastructure, while at the same time liberating our internal resources to focus on doing what we do best - tending to the needs of our customers and members," said Medco President and Chief Operating Officer Kenneth O. Klepper. "Today virtually every aspect of the pharmacy healthcare process - from the prescription to the patient communication - is mired in a legacy of paper documents. The future belongs to the speed, flexibility and adaptability of digital processes and the efficiencies of digital documents - that's Xerox's core expertise and that's our vision for this collaboration."
The first of five projects included under the agreement with Xerox will focus on enhancing efficiencies across Medco's internal non-pharmacy print operations, where the company prepares a wide range of client and member communications.
The cost savings will enable Medco to fund investments for advanced print design, digital document libraries, composition services, and output management capabilities. As part of the arrangement, Xerox will consolidate multiple print operations and deploy the LNK_NR_OfficeServices suite of device and asset management software tools to help Medco track, analyze and manage its network printing costs and equipment.
Xerox Global Services conducted an extensive on-site analysis and assessment of Medco's current output environment. The findings of this assessment identified areas where the organization can save on document costs.
"As healthcare becomes consumer-driven, as printing demands are increasingly influenced by the availability of integrated data and customized for an individual patient, and as documents move seamlessly from hardcopy to digital forms, we will rely on digital document technologies to ensure timely, actionable and critical information is delivered to our clients and members at the moment of need and in the form most appropriate," said Klepper.
LNK_NR_Medco (NYSE: MHS) is the nation's leading pharmacy benefit manager based on 2005 total net revenue of nearly $38 billion. Medco's prescription drug benefit programs that are designed to drive down the cost of pharmacy health care for private and public employers, health plans, labor unions and government agencies of all sizes, and for individuals served by the Medicare Part D Prescription Drug Program. Medco's technologically advanced mail-order pharmacies and award-winning Internet pharmacy have been recognized for setting new industry benchmarks for pharmacy dispensing quality. Medco serves the needs of patients with complex conditions requiring sophisticated treatment through its specialty pharmacy operation, which became the nation's largest with the 2005 acquisition of Accredo Health, Incorporated. Medco is the highest-ranked pharmacy benefit manager on the 2006 Fortune 500 list.
About Xerox Global Services
Xerox Corporation is a $16 billion company with 55,000 employees worldwide, which includes $3 billion of revenue from LNK_NR_GlobalServices_Site and 15,000 service professionals. Xerox experts can optimize assets in the office, streamline document-driven business processes, and improve efficiency in high-volume print production centers.