Rx Savings Solutions scored a sizable investment: $2.7 million in Series A funding.
“It’s a tremendous amount of capital that can be used to push the business to the next level,” CEO and founder Michael Rea said.
Two Kansas City-area investors led the round, including Jeffrey Brown and Dan Henry, one of Rea’s mentors.
The Overland Park company, which announced the latest investment Tuesday, is using the capital to boost its sales and marketing department with a goal of raising its brand awareness not just locally, but nationally, Rea said.
With the funding injection, Rx Savings hired three new sales execs and a new chief technology officer, Shahryar Qadri, who most recently worked at Cerner Corp. as a managing architect. Rx Savings also hired three software engineers, who will add new features and functionality to the website and increase efficiency.
“We’re bringing some high-caliber players to the table,” he said.
The timing is ripe for Rx Savings, which offers a patented software platform that helps consumers and their employers save money on prescription medications. One national employer with 5,000-plus members on its health plan saved $100,000 in 10 months with Rx Savings, he said.
“Health care is an extremely complex system, so we’re trying to eliminate that complexity for the consumer, change their behavior in the way they’re typically used to shopping for prescription drugs and ultimately save them and their employers money,” Rea said. “I’m really excited about the market as it exists today. As this big push toward health care consumerism takes hold, the need for tools like ours grows and grows.
“Since the Affordable Care Act became law five years ago, there has been a big focus on health care costs and how to add some efficiency. From a timing perspective, we’ve got a really good opportunity to go out and effect change.”
NEWSMAKER: Rea’s Rx Savings Solutions tackles expensive medications
Rx Solutions employs 27 and plans to add more employees as it grows, he said. It also expects to add 1 million members over the next 12 months.
