In our latest episode of Product in Healthtech, we caught up with Scott Martin, founder and CEO of Rescription. In our previous interview, Scott introduced Rescription while it was in its early stages, as the company had begun forming a partnership with the health system Bergen New Bridge. Now, more than two years have passed since their official launch, and the landscape has dramatically changed.
Recently featured in a Wall Street Journal article spotlighting innovative drug middlemen, Scott returns to our series to share Rescription's remarkable journey from promising startup to industry disruptor.
In this episode, we highlight the challenges, pivots, and breakthroughs that have defined Rescription's path to success.
Beyond Traditional PBMs: A Radical Approach to Transparency
The Wall Street Journal piece features Rescription as part of a new wave of drug middlemen, highlighting how they stand apart from traditional Pharmacy Benefit Managers (PBMs) in several crucial ways. As Scott puts it, their model is "100% different from what exists today," built on what he calls "radical clarity."
What does this radical clarity look like in practice?
- Guaranteed published prices for every prescription
- Simple per-member-per-month subscription fee as their only revenue source
- Elimination of spread pricing, formulary games, and rebate manipulation
Traditional PBMs have long operated in the shadows, with complex contracts that often lead to higher costs for employers and patients alike. Rescription has rebuilt the entire model from the ground up, addressing each pain point that has historically plagued the prescription drug ecosystem.
Leveraging 340B: Benefits for Both Health Systems and Patients
One of the most interesting aspects of our conversation centered on Rescription's approach to the federal 340B program. The 340B Drug Pricing Program was designed to allow certain hospitals serving vulnerable populations to purchase outpatient drugs at discounted prices. While there are ongoing debates about how various entities implement the program, Rescription has developed an approach that aims to benefit both health systems and patients simultaneously.
One critical misconception that Scott made sure to clarify for us: the 340B program doesn't use taxpayer dollars. Instead, it directs funds from drug manufacturers to support disproportionate share health systems that treat indigent populations. While some health systems use 340B discounts without passing savings to patients, Rescription's model ensures patients receive medications with $0 copays.
This approach transforms potential industry headwinds into tailwinds. While some pharmaceutical companies have restricted 340B discounts for contract pharmacies, Rescription sidesteps this issue by working directly with in-house health system pharmacies—precisely what manufacturers have advocated for.
Real-World Success: From Concept to Measurable Outcomes
Since our last conversation, Rescription has moved well beyond those initial stages. Their partnership with Bergen New Bridge (part of Rutgers University Health) launched on January 1, 2023, and has delivered approximately 30% savings consistently.
Building on this success, they've expanded to Baton Rouge General—a partnership about twice the size of Bergen New Bridge. Just three months in, they're already seeing 27% savings with an upward trend toward 35%. What's particularly impressive is the feedback from HR teams, with Baton Rouge General noting they've "never had a transition go so smoothly."
Beyond the financial metrics, the human impact appears significant. According to Scott, patients who previously couldn't afford their medications due to employer cost-shifting are now taking them as prescribed. He reports that this is leading to improved medication adherence, reduced emergency room visits, and better health outcomes overall. These testimonials from patients suggest that addressing affordability can have meaningful clinical implications.
Technology-Driven Scale: Patent-Pending Innovation
At the heart of Rescription's ability to deliver these results at scale is their patent-pending adjudication technology, developed in collaboration with Vynyl. Unlike how the vast majority of health systems handle claims, this technology enables real-time, upfront processing.
Traditional health systems perform adjudication after the fact, taking the spread as their compensation. Rescription's approach eliminates this spread while still enabling employers to implement their specific plan designs and benefits. The technology's ability to do this at scale is what makes their national expansion possible.
Looking Ahead: National Expansion and Enhanced Services
The momentum Rescription has built is translating into rapid growth. They're currently marketing in 14 different states and negotiating with 15 additional health systems across the country.
Future initiatives include:
- Bringing infusion therapy into their model to address another area of significant markup
- Tackling medication abandonment and non-adherence
- Leveraging their data warehouse to further benefit employers and members
Continued expansion and executing on these efforts should meaningfully advance their mission of "prescription health equity for all."
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Chris Hoyd is Principal at Vynyl and host of the Product in Healthtech podcast.
For more on how innovative companies are reshaping healthcare, visit the Product in Healthtech website or listen to our podcast on Spotify, YouTube, or Apple Podcasts.