Arcadia Healthcare Selects Indianapolis For New Corporate Headquarters
Indianapolis, IN - Governor Mitch Daniels joined Arcadia HealthCare CEO Marvin Richardson recently to announce the Company's plans to relocate its national headquarters to Indianapolis, IN. The move sets the stage for the Company's national launch of its DailyMed consumer product line aimed at reducing medication errors, improving medication compliance and ultimately lowering the cost of care.
Arcadia HealthCare, a leading provider of home health care, durable medical equipment and pharmacy services, will relocate its Southfield, MI corporate headquarters to Indianapolis's north side and will begin hiring managers, pharmacists, pharmacy technicians and sales staff later this year. The Company plans to hire more than 400 new employees by 2010. Additionally, the State of Indiana will encourage 1.8 million Hoosiers to take advantage of DailyMed , to improve outcomes and lower Indiana's health care expenditures.
"News of new jobs in Indiana is always a great story, but today's announcement comes with special meaning. This new headquarters establishes a long-term presence here that will continue to create jobs for Hoosiers well into the future," said Governor Daniels.
Arcadia is developing a relationship with Indiana's Family & Social Services Administration (FSSA) via its Options Program as well as its Community Action Agencies (CAA) and the Area Agencies on Aging (AAA) to promote DailyMed to approximately 100,000 Medicaid recipients. Additionally, 1.7 million Hoosiers enrolled in Medicare will be informed about DailyMed™ through a direct-to-consumer campaign on health and wellness.
"We are thrilled with our collaboration with the State of Indiana and as a native Hoosier, I could not be more pleased with our selection of Indianapolis for our new corporate headquarters," said Richardson. "The statewide DailyMed initiative will allow us to jump start our national launch, which we anticipate will occur in April 2008. Based on metrics from our successful rollout in the Minneapolis – St. Paul Metroplex, we estimate this Indiana initiative should represent $40M in incremental revenues in Fiscal 2009 ending March 31, 2009, a 30% increase in company revenue. We also expect some revenue growth in the balance of Fiscal 2008 ending March 31, 2008 as we implement the program beginning in November 2007," concluded Richardson.
In addition to the DailyMed rollout, Arcadia's move is supported by the Indiana Economic Development Corporation, which offered the Company up to $6M in performance-based tax credits and up to $137,500 in training grants based on current job creation plans. The City of Indianapolis offered the company property tax abatement, and Indianapolis Economic Development and the Indy Partnership assisted in the effort. These incentives, along with the reduced costs associated with the consolidation of four (4) regional offices into one (1) corporate office, will allow the Company to recognize both tax and SG&A savings. Such cost reductions have been a stated priority for the Executive Team.
Finally, Arcadia HealthCare's move is accompanied by clinical trial with the Purdue University School of Pharmacy and Pharmaceutical Sciences, of West Lafayette, IN. The trial will examine prescription drug compliance among current DailyMed™ users. The objective of the study is to demonstrate that DailyMed™ can improve a person's ability to adhere to a prescription drug regimen, thus reducing other medical and healthcare costs associated with medication errors and non-compliance. Nationally, medication-related problems create more than $177.4 billion in avoidable health care costs, according to the American Society of Consultant Pharmacists.
"Within the pharmacy community, we recognize the benefits technology and automation can bring to pharmaceutical care and outcomes," said Craig K. Svensson, Pharm. D., Ph.D., Dean of the College of Pharmacy, Nursing and Health Sciences at Purdue University. "Alternatives to prescription vials and plastic medication reminders may be helpful to patients trying to organize their use of multiple medications. The DailyMed™ program offers a possible solution to simplify medication management to help ensure patients take the right dose of medication at the right time. We are pleased to extend our expertise to a compliance study of product that may help patients in their daily treatment."
SOURCE: Arcadia HealthCare