The two healthcare companies have investment stakes in RxAdvance, a cloud-based pharmacy benefit manager.
Centene Corp. and Walgreens Boots Alliance, Inc. announced plans Thursday to create an "innovative model for pharmacy management" through RxAdvance, a cloud-based pharmacy benefit manager (PBM).
In a joint press release, the companies said the partnership aims to "increase transparency," "enhance customer experience," and improve patient health outcomes at a lower cost.
"This new approach to pharmacy management will improve the transparency and quality of care, while reducing unnecessary medical costs for millions of people," Michael Neidorff, CEO of Centene, said in a statement.
Stefano Pessina, CEO of Walgreens, echoed Neidorff's sentiments by adding that the Deerfield, Illinois-based company is eager to provide its pharmacists with tools to make critical decisions that "help improve adherence and also to reduce avoidable medical costs."
In March 2018, Centene took an investment stake in RxAdvance, bypassing CVS Caremark for its PBM needs. As part of the deal, Walgreens will make an investment in RxAdvance while Centene will increase its stake in the company.
The announcement comes one week before Centene's Q3 earnings report is expected to be released.
The strategic partnership will be rolled out in specific markets initially, according to the press release.
One of the most notable members of the RxAdvance team is John Sculley, former CEO of Apple Inc., who serves as chief marketing officer.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.
Photo credit: KIEV, UKRAINE - Dec 11, 2018: Centene Corporation Insurance company logo seen displayed on smart phone. - Image / Editorial credit: IgorGolovniov / Shutterstock.com