OP prescription software firm lands $2.7M
September 22, 2015 | Ashley Jost
An Overland Park software company recently wrapped up a hefty funding round, according to its founder and CEO.
Rx Savings Solutions, a business that works with other companies to manage employees’ monthly medications, secured $2.7 million in funding. Kansas City investors Dan Henry, CEO of NetSpend Corp., and Jeffrey Brown, chairman at StoreFinancial, led the investment.
The funding will go toward product and business development for the company, which grew from two employees to 27 in the last 18 months. The company’s top clients include the State of Kansas and Berkshire Hathaway Company’s media group. Company leaders hope to grow by one million users during the next 12 months.
“As the intersection between healthcare and consumerism collides, health plan models are being challenged to produce innovative approaches that save money and provide better care,” Rx Savings Solutions CEO Michael Rea said in a release. Rea is a former pharmacist.
Founded in 2008, RX Savings Solutions created a patented software platform that helps employers pay the lowest market rate possible for prescriptions. On average, employers are overspending by 22 percent, according to RX Savings Solutions.
The company’s investors said that Rx Savings Solutions has a potential to disrupt its industry.
“Launching a business entails solving a problem that can impact consumers at every level, and Michael and his team at Rx Savings Solutions have developed a solution that corrects the consumer prescription drug experience,” Henry said in a release. “The industry is ripe for change and Rx Savings Solutions has positioned itself as a leader in this shift through its vision, positioning and overall strategy. With this investment, I look forward to helping them grow and develop both from a business standpoint and within the market.”
2015 Startups to Watch
stats here
Related Posts on Startland News
KC’s ‘Horn Doctor’ handcrafts jazz preservation, keeping soul, tradition alive on Vine Street
Across the historic intersection at Kansas City’s 12th and Vine streets, B.A.C. Musical Instruments operates as one of the few remaining American factories handcrafting professional brass instruments. “This is where all the musicians would hang out back in the day,” said founder Mike “Horn Doctor” Corrigan, gesturing toward the Paseo sunken garden beside his shop.…
Autotech startup revs after patent stall; signature tech removes emissions, waste from diesel logistics
Fresh fuel is pumping into NORDEF after the Kansas City autotech company finally received patent approval for its signature product, co-founder William Walls said, pushing the pedal on its mission to disrupt the automotive fluid industry. Four years after applying for a provisional patent for its technology to produce diesel exhaust fluid on-demand — and…
rOOTS KC grows into third location, planting shop in River Market ahead of World Cup
Initially setting its roots as a pop-up plant shop in 2020, Dee Ferguson’s leafy business has grown to three Kansas City locations. The secret is in the soil, she said, describing a strategy for cultivating customers through free, evergreen plant care support and “community-rooted spirit.” [pullquote] The name rOOTS comes from Dee Ferguson’s surname: Oots.…
Summer funding pushes CarePilot to team hires, AI accolades, healthtech product launch
Fresh off its summer capital infusion, a Kansas City-built AI startup that helps doctors focus on patients instead of administrative tasks is earning industry recognition and dropping another new product, said Joseph Tutera, sharing credit for the milestones with behind-the-scenes talent. “We have a young team and they don’t have the encumbrance of a prior…