IRVINE, Calif., March 3, 2015 (GLOBE NEWSWIRE) -- Praxsyn Corporation (OTCQB:PXYN) announces that its wholly owned subsidiary, Mesa Pharmacy Inc. (Mesa), has final committed amounts in excess of $4 million for approved preferred provider organization (PPO) claims dating from February 1, 2015 through February 28, 2015 from 15 of its 28 licensed states across the country. The commitment of these claims has been accomplished through its previously announced marketing agreement with NHS Pharma, Inc. Marketing and billing costs are still applicable at industry standards of 55 percent of the total amount billed.
"The benefit of PPO is that every claim is approved at the billed amount and at the point of service," said Edward Kurtz, Chief Executive Officer, Praxsyn Corporation. "Insurance companies are committed to pay the total amount billed within 30-90 days of the prescription being filled. This eliminates the need for Mesa to finance their PPO claims."
Due to the faster processing of PPO claims, Mesa expects to have more cash on hand in order to pay down debt and continue growing the business. "Reinvesting cash into the business is part of our overall strategy of increasing value to our shareholders," said Bob Crowson, Controller, Praxsyn Corporation. Mesa will continue to fill prescriptions for Workman's Compensation (WC) claims through NexGen Med Solutions, however, due to the slow payment component of these claims it will still be necessary to utilize factoring for such accounts receivables.
Mesa continued to make progress towards dispensing its customized medication nationally and is currently shipping to 15 of its 28 licensed states. The company is now licensed in the following 28 states:
- Arizona – Y005936
- California – PHY50766
- Colorado – OSP.0006527
- Connecticut – PCN.0002821
- Delaware – A9-0001557
- Florida – PH27082
- Hawaii – PMP705
- Idaho – 37595MS
- Illinois – 54.018647
- Indiana – 64001705A
- Iowa – 4429
- Kansas – 22-44650
- Massachusetts - PHY50766
- Minnesota – 264609
- Mississippi – 14234
- Missouri – 2014038089
- Nevada – PH03201
- New Jersey – 28RO00109500
- New Mexico – PH00003756
- New York – 33063
- Oklahoma – 99-6802
- Pennsylvania - PHY50766
- Rhode Island – CPHN10740
- South Dakota – 400-1369
- Texas – 29457
- Washington – PHNR.FO.60488183
- Wisconsin – 1221-43
- Wyoming – NR-50910
About Praxsyn Corporation
Headquartered in Irvine, California, Praxsyn works to realize the vision of medical professionals to improve the lives of patients. Mesa Pharmacy, a wholly owned subsidiary, provides doctors with an alternative to oral pain medications. Mesa focuses on providing custom compounded non-narcotic, transdermal topical pain medications that are marketed to industrial health physicians and medical clinics. Mesa has developed a series of topical creams, in different strengths, that provide the pain relief doctors seek for their patients. Additional company information can be found at www.praxsyn.com.
Forward-Looking Statements
Certain statements made in this press release are forward-looking in nature (within the meaning of the Private Securities Litigation Reform Act of 1995) including but not limited to statements regarding the past performance, expected cash on hand and anticipated results of the February 2015 final committed amounts in excess of $4 million in PPO adjudicated claims, and, accordingly, are subject to risks and uncertainties. The actual results may differ materially from those described or contemplated and consequently, you should not rely on these forward-looking statements as predictions of future events. Certain of these risks and uncertainties are discussed in the reports we filed with the SEC.