DecisionRx Announces $100 Million Credit Facility with Carlyle
- Securing a $100 million credit facility with Carlyle demonstrates strong investor belief in DecisionRx's innovative approach to improving patient outcomes.
- Medication Therapy Optimization has been shown to reduce total cost of care per Medicare patient by over $3,600 per year, indicating the potential for significant cost savings and improved patient care.
- The option for Carlyle to acquire 25% of DecisionRx's equity could potentially lead to a strategic partnership that benefits both parties.
- None.
Insights
The establishment of a $100 million credit facility between DecisionRx and Carlyle represents a significant strategic move in the healthcare sector, particularly within the domain of medication therapy optimization. The infusion of capital is poised to bolster DecisionRx's capacity to absorb the costs associated with its medication therapy optimization program, a factor that is critical to its value-based care model. By assuming the costs for lab testing and medication reviews, DecisionRx is likely to enhance its appeal to Accountable Care Organizations, Medicare Advantage Plans and self-insured employers, who are increasingly focused on cost-effective patient care.
From a financial perspective, the claim of reducing the total cost of care per Medicare patient by $3,600 annually, if substantiated and scalable, could signify substantial savings for the healthcare system and present a compelling value proposition to potential partners and investors. Additionally, the option granted to Carlyle to acquire 25% of the outstanding equity of DecisionRx underscores the investment firm's confidence in the company's growth trajectory and its potential to yield a significant return on investment.
DecisionRx's approach disrupts the traditional prescribing paradigm by integrating personalized medication therapy with clinical science, which could lead to a paradigm shift in how medications are prescribed and managed. The emphasis on selecting the right medications upfront, supported by data-driven insights from genomics and medical claims, aligns with the broader industry trend towards personalized medicine and value-based care.
The partnership with Carlyle could also enhance DecisionRx's market position, providing the necessary financial support to scale its operations and potentially expand its market share. The transaction reflects a broader industry trend where investment firms are increasingly interested in innovative healthcare solutions that promise to improve patient outcomes while reducing costs, a key driver in the value-based care model.
Medication Therapy Optimization (MTO) is a pharmacoeconomic intervention that aims to maximize the effectiveness of drug therapy while minimizing its cost and adverse effects. The financial backing from Carlyle to support DecisionRx's MTO program indicates recognition of the economic value of such interventions. By reducing medication failure and improving outcomes, MTO can lead to a decrease in overall healthcare expenditures, particularly for chronic conditions prevalent in the Medicare population.
The projected cost savings of $3,600 per Medicare patient per year through MTO not only has implications for individual patient care but also for the broader healthcare economy. If these savings are realized at scale, they could contribute to the sustainability of Medicare programs and influence healthcare policy and reimbursement strategies. The investment in DecisionRx's MTO program could serve as a bellwether for the pharmacoeconomic impact of similar interventions in the healthcare industry.
Funds to support delivery of DecisionRx’s comprehensive medication therapy optimization program
The financing will support the cost-bearing that is key to DecisionRx’s unique business model: DecisionRx can assume the full cost of delivering Medication Therapy Optimization to patients of Accountable Care Organizations, Medicare Advantage Plans, and self-insured employers. The facility is expected to fund lab testing and comprehensive medication reviews by DecisionRx pharmacists for over 100,000 patients. Medication Therapy Optimization has been shown to reduce total cost of care per Medicare patient by over
“This transaction strongly validates investors’ belief in our innovative approach to improving patient outcomes by helping providers avoid medication failure at scale. Much attention is given to buying prescription medications at the right price, but our focus is on selecting the right medications in the first place,” said DecisionRx CEO James Wallace. “Our proprietary platform disrupts the one-size-fits-all prescribing paradigm. We’ve eliminated the barriers that prevent physicians from delivering the highest standard of personalized medication therapy supported by clinical science—in partnership with our clinical pharmacists and informed by data-driven insights from genomics, medical claims, and a comprehensive drug information knowledge base.”
“We are pleased to partner with DecisionRx in this important phase of growth for the company,” said Akhil Bansal, Head of Credit Strategic Solutions at Carlyle. “DecisionRx’s focus on increasing prescribers’ efficacy of care can significantly improve patient outcomes and we believe this will play an important role in the future of value-based care.”
As part of the transaction, Carlyle receives the option to acquire
This transaction was led by Carlyle’s Credit Strategic Solutions (“CSS”) team, a group within the Global Credit business focused on private fixed income and asset-backed investments. The highly experienced team leverages the knowledge, sourcing, structuring, and breadth of the entire Carlyle investment platform to deliver tailored asset-focused financing solutions to businesses, specialty finance companies, banks, asset managers, and other originators and owners of diversified pools of assets.
As of September 30, 2023, CSS has deployed more than
About DecisionRx
DecisionRx is a technology-enabled healthcare services company, improving patient outcomes and reducing healthcare costs by helping physicians optimize prescribing decisions for their patients. DecisionRx clinical pharmacists work on patients’ behalf to mitigate medication failure by making personalized medication recommendations to prescribers, informed by the latest clinical and data-science, and delivered in a value-based care model. Medication failure accounts for at least
About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries and sovereignties with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business.
Follow Aon on LinkedIn, Twitter, Facebook and Instagram. Stay up-to-date at the Aon Newsroom and sign-up for News Alerts here.
Aon
View source version on businesswire.com: https://www.businesswire.com/news/home/20240111675093/en/
Media
Kyle Evans
ICR Westwicke on behalf of DecisionRx
646-677-1295
Kyle.Evans@westwicke.com
Kristen Greco Ashton
Carlyle
212-813-4763
Kristen.Ashton@carlyle.com
Source: DecisionRx, Inc.
FAQ
What is the name of the company securing the $100 million credit facility with Carlyle?
What is the ticker symbol for DecisionRx, Inc.?
What is the purpose of the $100 million credit facility secured by DecisionRx, Inc.?
How much is the expected reduction in total cost of care per Medicare patient due to Medication Therapy Optimization?
What is the option that Carlyle receives as part of the transaction with DecisionRx, Inc.?
