About PharmMD– PharmMD is a privately held Nashville-

based firm, founded in 2006 to address the emerging market for medication therapy management (MTM) services

– Part of the $62B Nashville Healthcare Market

– We serve the employer and health plan markets

– Guarantee 1:1 ROI against fee

– We offer a Nationwide Network of Credentialed Clinical Pharmacists and Retail Pharmacist Partners

– Over 7,000,000 lives under management

– Over 100M claims weekly

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ogy

Res

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• Fully Validated Results• $140 PMPM Net Savings• Hard and Soft Dollar savings • Transparent reporting• Multiple Client Solutions

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• National Consulting Pharmacist Network• Employed Pharmacist Mgrs• Scientific Advisory Board• Pharmacists Intervene with Patient or MD

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• Proprietary MTM Process• Structured Rx Management• Proprietary Guidelines• Integrates Rx & Medical Info• Medication Reconciliation Process• Consumer Web Portal

• Clinical Algorithms to Identify Drug Therapy Problems• Automated Update of Rx• Detailed Client Reports• Consumer Drug Interaction Tools

Health and Human Capital Management

PMD PlatformState-of-the Art Cloud

Environment

PharmMD “Apps”

ROI & Reporting

Data Analytics

Engine

Data Collection

The Problem:

•70% of deaths in US due to Chronic Disease

•Misuse of Medications result in costly medical services ($177B problem in US).

•51% of all Americans of all ages on Chronic Medications

•1.5 million U.S. patients are harmed every year by medication errors

•Medication related deaths estimated to be 7,000-50,000 annually

•For every $1 spent on a drug benefit there is $1.73 spent on addressing the resulting medical problems.

•Medication Errors outside hospitals are causing 30% of all readmits and 5-25%of ER visits.

The Solution: • PharmMD monitors both Medical PharmMD monitors both Medical

and Rx claims (weekly or daily)and Rx claims (weekly or daily)

• Trained Pharmacists communicate Trained Pharmacists communicate value of compliance and right drug value of compliance and right drug therapiestherapies

• Lowest cost but highest quality Lowest cost but highest quality drugs for each person drugs for each person recommendedrecommended

• PharmMD advises doctors of PharmMD advises doctors of potential medication errors they potential medication errors they otherwise would not catchotherwise would not catch

• Appropriate use of meds reduces Appropriate use of meds reduces ER visits, Hospitalizations, and ER visits, Hospitalizations, and Doctor’s office visitsDoctor’s office visits

• Using drugs correctly enhances Using drugs correctly enhances productivity and improves quality of productivity and improves quality of lifelife

Standardized Processes-The PharmMD Way

A standardized process that builds patient understanding of the need to receive MTM services. With the PharmMD way, people understand “What’s in it for THEM!”

The PharmMD CPL®

The CPL™ allows clinicians to code clinical rules using multiple variables, including ICD-9 codes, without needing a computer programmer! This enables a highly customized and responsive program to deliver results.

Once developed, the rule can be tested to identify how many patients are identified within the rule criteria. Once satisfied the rule is activated and the drug therapy problems are automatically created in the system!

condition("Asthma") or icd9("493.00","493.01","493.02","493.10","493.11","493.12","493.20","493.21","493.22","493.81","493.82","49

3.90","493.92")

DTP ScoreClinical Rules Generate Drug Therapy Problems with severity scoring (DTP Score™) to enable clinicians to focus on what is important.

DTP Scoring can include a time-based factor or be strictly focused on severity.

Result Check™

In this example, the MedPro 2.0 system looks to see that the inappropriate medication is not dispensed. Finding that it is not, the DTP status is changed to “Closed: Resolved” and is fully reportable as a successful intervention.

Result Check™

Results can then be reported in summary, disease-specific, DTP category, and population categories to show effectiveness and determine how to target desired groups

PharmMDNational Pharmacist Network

Drug Therapy Problem Summaryby category

Client Results

Actual Client Study & Results•Reduced MTM members’ medical costs by greater than 30%*•4 Methods of ROI measurement produced Net PMPM Savings of:

$160, $144, $65 and a ECA of 3:1

* Note: client results will vary based upon several factors including formulary design, current client population’s health, MTM services implemented

Rx   Medical   Total  

Intervention Population PMPM Intervention PMPM Intervention PMPM

Baseline Period PMPM  $    252.74  Baseline Period PMPM  $  610.38  Baseline Period PMPM  $     863.12 

Intervention Period PMPM  $    237.16  Intervention Period PMPM  $  538.53  Intervention Period PMPM  $     775.69 

Unadjusted Trend  -6.16% Unadjusted Trend  -11.77% Unadjusted Trend  -10.13%

NonIntervention Trend (see below) -3.19% NonIntervention Trend (see below) 9.38% NonIntervention Trend (see below) 6.60%

Expected NonIntervention PMPM  $    244.68  Expected NonIntervention PMPM  $  667.63  Expected NonIntervention PMPM  $     920.05 

Savings (Increase)  $                    7.52  Savings (Increase)  $  129.10  Savings (Increase) $ 144.36

NonIntervention Population PMPM NonIntervention PMPM NonIntervention PMPM

Baseline Period PMPM  $    105.07  Baseline Period PMPM  $  369.25  Baseline Period PMPM  $     474.32 

Intervention Period PMPM  $    101.72  Intervention Period PMPM  $  403.89  Intervention Period PMPM  $     505.61 NonIntervention Trend -3.19% NonIntervention Trend 9.38% NonIntervention Trend 6.60%

Medication Action Plan to Prescriber MAP – with target response