National Medical Health Card Systems, Inc. (NMHC)
National Medical Health Card Systems, Inc. (NASD: NMHC) is one of the nations leading providers of pharmacy benefit management services. Established in 1981, the company has a particular emphasis on the small and middle market customer segment, with notable strengths in the areas of customer service, cost containment and fair reporting. NMHC operates NMHC Rx (pharmacy benefits manager or PBM), Integrail (health information solutions), NMHC Mail (home delivery pharmacy), and Ascend (specialty pharmacy solutions), providing services to corporations, unions, health maintenance organizations, third-party administrators, and local governments. Through its clinical programs, value-added offerings and advanced information systems, NMHC provides quality, cost effective management of pharmacy benefit programs.
New Mountain acquired a majority ownership position in NMHC in March 2004, as a result of a proactive analytical focus on the pharmacy benefit management industry which had begun in 2001. New Mountain negotiated this purchase with NMHC on an exclusive basis without auction due to New Mountain’s proven ability to add value at its other portfolio companies.
With New Mountain’s support, the company rebuilt its board, strengthened its management team, completed two substantial acquisitions without auctions, gained research coverage from six Wall Street firms, approached key customers at a higher level and expanded its credit lines. NMHC was acquired by SXC Health Solutions Corporation (NASD: SXCI) in April 2008 for a consideration of cash and stock, creating a unique industry leader offering a full-service suite of PBM offerings complemented by leading capabilities in PBM information technology.