Longs Drug Stores Forms New Subsidiary to Expand Managed Health Care Services

Longs Drug Stores, a major provider of pharmacy services in the western United States, has announced the formation of a new subsidiary, Integrated Health Concepts (IHC), to enhance its position in the growing managed health care market. As part of its strategy to expand its pharmacy services, Longs has established IHC to provide a broad range of pharmacy benefit management services to clients, including plan design development, pharmacy provider network management, and mail service pharmacy services.

Key Takeaways:

• Longs Drug Stores has formed a new subsidiary, Integrated Health Concepts (IHC), to expand its managed health care services.
• IHC will offer clients a range of pharmacy benefit management services, including plan design development, pharmacy provider network management, and mail service pharmacy services.
• Longs has a total of 324 stores in California, Hawaii, Nevada, and Colorado, with pharmacy services accounting for over 30% of total sales.
• IHC will work closely with plan sponsors to design and implement programs to reduce rising health care costs.
• Steve Roath, president of Longs, stated that the company's pharmacists can play a significant role in providing cost-effective health care.
• Dale Bystrom has been appointed vice president of IHC to lead the company's effort.
• Longs has identified the growing managed health care market as a key area for expansion and growth.

Statistics:

• Longs Drug Stores operates 324 stores in California, Hawaii, Nevada, and Colorado.
• Pharmacy services account for over 30% of total sales for Longs.
• IHC will offer its clients a range of pharmacy benefit management services, including plan design development and pharmacy provider network management.
• The company has appointed Dale Bystrom as vice president of IHC.

Sources:

• Longs Drug Stores California, Inc. press release, January 3, 1995 (no date), /PRNewswire/.
• Longs Drug Stores Corporation, Longs Drug Stores, Inc., and Integrated Health Concepts.
• Longs Drug Stores, "Our Mission," (no date).
• Longs Drug Stores, "Pharmacy Services," (no date).