CARERX REPORTS ONTARIO MINISTRY OF HEALTH'S POSTPONEMENT OF PLANNED FEE CHANGES FOR ANOTHER YEAR
TORONTO, Feb. 23, 2022 /CNW/ - CareRx Corporation ("CareRx" or the "Company") (TSX: CRRX), Canada's leading provider of pharmacy services to seniors living communities, today reported that the Ontario Ministry of Health ("MOH") has announced that it will again postpone for one year the previously scheduled changes to long-term care pharmacy funding. The changes were originally scheduled to come into effect on April 1, 2021, however, were previously postponed until April 1, 2022. The changes have again been postponed and are now scheduled to come into effect on April 1, 2023.
"We applaud the Ontario Ministry of Health for once again making the decision to postpone its planned fee changes as long-term care homes and their staff continue to manage through the still significant challenges created by the COVID-19 pandemic," said David Murphy, President and Chief Executive Officer of CareRx. "At CareRx, we pride ourselves on the critical role we play together with our long-term care partners in delivering positive health outcomes, while helping to improve direct resident care nursing time and reducing the overall cost of healthcare. This postponement will ensure that we can continue to provide the same exceptional service offering to our home partners and their residents to continue to support them during this especially challenging time. We again thank the Ontario Government, and especially Ministers Elliott and Calandra, for their continued dialogue and commitment to protecting the wellbeing of seniors in long-term care."
Under certain amendments to the Ontario Drug Benefit Act that came into effect on January 1, 2020, the reimbursement model for long-term care pharmacies in Ontario was changed from a fee-for-service model to a fee-per-bed capitation model under which pharmacies receive a fixed professional fee for all pharmacy services provided to residents in long-term care homes. The fee for 2020, which was prescribed at $1,500 per bed per year, was scheduled to decline to $1,400 per bed per year on April 1, 2021. The step-down in capitation was previously postponed until April 1, 2022 and has now been postponed again until April 1, 2023.
CareRx is Canada's leading provider of pharmacy services to seniors living communities. We serve over 96,000 residents in over 1,600 seniors and other congregate care communities (long-term care homes, retirement homes, assisted living facilities, and group homes). We are a national organization with a large network of pharmacy fulfillment centres strategically located across the country. This allows us to deliver medications in a timely and cost-effective manner and quickly respond to routine changes in medication management. We use best-in-class technology that automates the preparation and verification of multi-dose compliance packaging of medication, providing the highest levels of safety and adherence for individuals with complex medication regimes. We take an active role in working with our home operator partners to promote resident health, staff education, and medication system quality and efficiency.
This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, among others, statements regarding the Company's business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.
Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Factors that could cause such differences include the Company's exposure to and reliance on government regulation and funding, the Company's liquidity and capital requirements, exposure to epidemic or pandemic outbreak, the highly competitive nature of the Company's industry, reliance on contracts with key customers and other risk factors described from time to time in the reports and disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements and neither the Company nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. The factors underlying current expectations are dynamic and subject to change.
For more information, visit www.carerx.ca.
SOURCE CareRx Corporation
For further information: David Murphy, President & Chief Executive Officer, CareRx Corporation, 416-927-8400; Lawrence Chamberlain, Investor Relations, LodeRock Advisors, 416-519-4196, firstname.lastname@example.org