Assertion Contradicted
Loiacono: Competing PBMs Faked Mandatory Federal Compensation Disclosures in 2023
“23 people needed to start reporting this information, people being pharmacy benefit managers and administrators like ourselves, Had to start reporting this information. And what we realized is people were faking it. They either weren't doing it or they were pr…”
Opinion
Loiacono: Traditional PBMs have a 'horrible conflict of interest'
“I felt this was a horrible conflict of interest. The conflict of interest is, think about it, if you're asking someone to manage your benefit plan, and the more expensive the medication, the more money they make, that doesn't sound like a recipe for good outco…”
Opinion
Loiacono: Smaller Employers Suffer From Shadier, Highly Commissioned Brokers
“The smaller the employer group, usually the shadier the broker. And what I mean by this is they're going to be like, I'm going to get paid on everything and anything. The larger the client, you start to see, I would say some professional behavior here and some…”
Insight
Loiacono: A $10M ARR startup is nothing in consolidated healthcare markets
“Healthcare is highly consolidated. CVS, Cigna, and United Healthcare. Three publicly traded companies, all of which are I'm gonna say Fortune eight, Fortune 10, Fortune 14, respectively, in that range. And so when you're battling with titans, yeah, ten million…”
Assertion Partly supported
Loiacono: Traditional PBMs Charge Hundreds of Different Prices for Same Drug
“You know, so if a traditional pharmacy benefit manager, someone we compete with, they'll have hundreds of different prices for the same drug, same day, same pharmacy for different customers.”
Assertion Not checkable as stated
Loiacono: Capital Rx won Fortune 500s by operating 70% more efficiently
“So if you read my business plan at the start, it was, we need to operate 70% more efficient than three fortune 15 companies. Now, their purchasing power was higher, but if we operated that at that efficiency, we could beat them head to head and we could do som…”
Insight
Loiacono: Screen for mission alignment by awaiting unprompted healthcare grievances from candidates
“Can't ask. You just avoid it. They have to bring it up. And if they bring it up, and the other and to this logic string is, and they shared something personal. Like, I have witnessed how bad healthcare is. Let me tell you why. Odds are, this is personal. They …”
Assertion Supported
Loiacono: US drug spend surged from $110B in 2000 to $1T today
“If we went back to 2000, the year 2000, The total drug spend in the United States was like a hundred and ten billion dollars. We fast forward to today. It's a trillion.”
Insight
Loiacono: Labor unions are ideal early adopters for healthcare cost products
“Unions are very good early adopters when it comes to cost savings and service, because one, they want to make sure their membership is, is treated on a level like family. The second part is municipalities and public sector and unions, they have fixed budgets.”
Opinion
Loiacono: Breaking Out PBM Revenue Streams by Client Is Almost Impossible
“My competitors had to suddenly contemplate, am I going to disclose what I'm making on spread pricing? Acquisition costs, three 40 B rebates, performance management fees, you know, like price protection. They have all these revenue streams and to break it out b…”
Assertion Not checkable as stated
Loiacono: Capital Rx spent zero dollars on marketing in early years
“So we did zero marketing the first two years. Zero. And we wouldn't sponsor anything. We really wouldn't go to anything. We wouldn't do anything. We wouldn't spend on search or Any type of sponsorship programs for conferences. We just wouldn't do it.”
Insight
Loiacono: Healthcare startups face no shortcuts due to strict enterprise reference requirements
“When you're in healthcare, I often say there are no shortcuts because Even if your brother or sister was the CEO of a large Fortune 500 company, and they have a 100,000 employees, and you say, hey, I could service your company, someone in compliance or legal, …”
Insight
Loiacono: Healthcare companies need established-sounding names, not 'new' branding
“In healthcare, you want to feel like you've been around forever. You don't want to have like new in your name.”
Assertion Partly supported
Loiacono: Pharmaceutical Manufacturers Adjust Drug Prices Only in January and July
“So on the manufacturing side, we change price twice a year. You could set a clock to it, January and July.”
Disclosure
Loiacono: I still personally manage two of Capital Rx's oldest accounts
“And I'm still the client manager on two of our oldest accounts, and people are like, why would you, as the CEO, be an account manager? And I go, because I have a direct line to the feedback. What's working? What's not? What keeps them up at night? What could w…”
Disclosure
Loiacono: Judi Health hired its first 40 employees via direct network connections
“Yeah, so, alright, first 40 employees, I go to one degree of separation. You know, is it someone I worked with, or someone very close to me that I respect worked with this person?”
Assertion Supported
Loiacono: 96% of Patients Accept Prescription Prices at the Pharmacy Register
“So, most people, if you are accepting your prescription at the register, you're going to see pick up of like, 96%.”
Disclosure
Loiacono: Capital Rx scaled from 500 lives to Fortune 500 clients quickly
“These are 500, a thousand life cases that you're working with in your first year. It's in that second year. It was almost immediately Once you had references, you could sell to a 4000 life case. You could sell to an 8000 life case, and then I get the phone cal…”
