Current Prescription Strategy

Dealing with the cost of third party insurance companies

July 2, 2002

The June 30^th, 2002 Board Members meeting commenced today to determine and entertain strategies for dealing with the third party insurance programs. After several hours of discussion the final decision was voted unanimously. The Board members decided to abolish low paying insurance companies in order to increase profits. The Board members milled through stacks of statistical information regarding insurance reimbursement plans to verify that profits will increase without certain low paying insurance companies.

"Savings are not only realized by reducing insulting reimbursement plans but also by increasing our cash flow because we won't need to stock expensive medications that only pay two or three dollars over cost", said President, Noe Borrego. Fiesta pharmacy expects a loss of some customers but the loss of customer base will be far exceeded by the cash flow increase that will result from not having money tied up in expensive inventory that is only affordable by customers with insurance plans. Noe Borrego also said that "...some of these insurance plans expect us to pay them for dispensing medication!!! There is know way to survive with such ludicrous expectations of third party prescription plans. We must actively screen and remove poor plans from our business".

The previous trial insurance plan terminations of PCS and PAID have been far more successful then previously thought. It turns out that after transferring their scripts to HEB or Wal-Mart, 15% of our transferred customers came back to us. The customers say that they would rather pay cash for their prescriptions in order to receive the superior customer service provided by Fiesta Pharmacy then deal with the chaos of the "big" prescription chains.

Currently, Fiesta Pharmacy is filling 80-100 prescriptions per day during the summer season and 125-150 prescriptions per day during the winter season. Most of our insurance plans are decent, for insurance companies. For instance, we will be keeping plans that pay as good or better then Texas Medicaid and Worker's Compensation plans. But over the next six months Fiesta Pharmacy hopes to have removed all the poor paying third party plans.

For More Information Contact:

Fiesta Pharmacy
1900 Bedell Avenue, Suite B
Del Rio, TX 78840
Tel: 830-775-1533
FAX: 830-774-5289
Internet: noe@automedix.biz