After multiple reports that mail-order pharmacy Philidor Rx Services used questionable tactics to get insurance companies to pay for the drugs it dispensed, the company is closing two Montgomery County facilities and laying off a total of 784 workers in the region. It’s also closing a plant in Phoenix and laying off a total of 264 people there.
Specialty pharmaceutical companies typically dispense high-cost drugs that require special packaging and handling like refrigeration. Think injectable shots for ailments ranging from diabetes to arthritis to cancer. Philidor came under fire for reportedly “changing doctor’s prescriptions and using other pharmacies’ identification numbers — to get insurers to pay for the drugs it dispensed,” according to the New York Times. The Wall Street Journal adds that the company allegedly “used unorthodox tactics to ensure payment, such as submitting a prescription over and over at different prices until an insurer would agree to pay, according to former employees and pharmacy industry officials. And the medicines weren’t drugs requiring special handling, pharmacists say.” Read more »