CompRx purchases workers’ compensation pharmacy receivables from Pharmacy Benefit Managers and makes those receivables available for purchase by investment entities at a defined discount rate.
Workers’ compensation pharmacy claims routinely take 60 to 180 days or more to reimburse. Claim adjudication, multi-party processing, and dispute resolution all contribute to extended timelines — creating a consistent, predictable gap between when medication is dispensed and when payment is received.
CompRx purchases those pharmacy receivables from Pharmacy Benefit Managers before the reimbursement cycle completes, then makes those receivables available to investment entities at a defined discount rate based on a validated Net Realized Value (NRV).
The result: investment entities gain access to workers’ compensation pharmacy receivables with an established performance baseline — without sourcing, underwriting, or managing claims independently.
CompRx operates through a two-phase program designed to validate performance before any receivables are made available for purchase.
During the initial six-month pilot period, CompRx assumes full financial responsibility for the cost of medications dispensed through the program. The participating entity incurs no upfront financial exposure during this phase.
Prescriptions are submitted to the partnered mail order pharmacy or the patient's preferred pharmacy. CompRx covers medication costs and bears the risk of delayed, partial, or denied workers' compensation reimbursements.
Claims data collected during this period establishes the program's Net Realized Value (NRV) — the verified average reimbursement rate across all submitted claims. The pilot period cannot be shortened. A full six months is required to produce an accurate, defensible NRV benchmark.
Once NRV is established, the program transitions to an ongoing factoring arrangement. Eligible workers' compensation pharmacy receivables are made available for purchase by qualified investment entities at a defined discount rate based on the validated NRV.
The investment entity receives accelerated payment on eligible receivables rather than waiting on workers' compensation payer reimbursement timelines. The investment entity assumes the collection risk on purchased receivables. The NRV benchmark, established during the pilot, governs the pricing of all subsequent receivable transactions.
Billing and collections are handled by LaborRx under a separate agreement with the investment entity.
The example below uses an 80% collection rate established during a six-month pilot. All figures are illustrative only. Actual results will vary.
The investment entity purchases receivables at the purchase price and assumes collection risk. The gross return is realized upon successful collection from the workers’ compensation payer. Actual collection rates will vary based on the validated NRV established during the pilot period.
