Electronic Prescriptions Soar at Walgreens

Walgreens (NYSE:WAG)(NASDAQ:WAG):

• Drugstore chain fills more than 3 million electronic prescriptions in March, 211 percent higher than a year ago
• Drug effectiveness, quality, safety and cost control all improve with electronic prescribing
• Federal stimulus package expected to bolster electronic prescribing further

Walgreens pharmacies filled a record 3.1 million prescriptions electronically in March, about 15 percent of all the drugstore chain’s eligible prescriptions and a 211 percent increase compared with March of last year.

Walgreens estimates it will fill more than 40 million electronic prescriptions this year compared with 15 million filled in 2008. The company expects growth to continue, as the federal government in January began providing financial incentives for doctors to transmit prescriptions electronically for Medicare patients. In exchange, the doctors will earn a 2 percent bonus on their covered Medicare reimbursements.

Also, the recently signed federal stimulus package should sharply bolster electronic prescribing throughout the United States by providing $36 billion in incentives to clinics and medical offices to adopt electronic health records. A core component of the upgraded technology will allow doctors access to software that makes electronic prescribing possible.

Walgreens, which in 1992 was the first pharmacy to launch an electronic prescribing system, is the industry leader in filling electronic prescriptions. Nationally, about 4 percent of all eligible prescriptions were transmitted electronically last year, according to SureScripts, which is the country’s largest secure electronic prescribing network.

Don Huonker, Walgreens senior vice president of heath care innovation, said the continued growth in e-prescriptions demonstrates Walgreens commitment to lowering health care costs and improving quality.

“Prescriptions transmitted electronically increase the likelihood that patients will get their prescriptions filled, benefit from their drug therapy and avoid more expensive medical procedures,” Huonker said. “E-prescribing improves patient safety and quality of care by reducing medication errors and adverse drug events while also reducing time spent on the phone with physician offices to clarify hand-written prescriptions.

“The fewer times our pharmacists need to call a physician’s office and verify a prescription, the more time they have to focus on drug interactions, the right dosing and patient consultation.”

Walgreens (www.walgreens.com) is the nation’s largest drugstore chain with fiscal 2008 sales of $59 billion. The company operates 6,736 drugstores in 49 states, the District of Columbia and Puerto Rico. Walgreens provides the most convenient access to consumer goods and services and cost-effective pharmacy, health and wellness services in America through its retail drugstores, Walgreens Health Services division and Walgreens Health and Wellness division. Walgreens Health Services assists pharmacy patients and prescription drug and medical plans through Walgreens Health Initiatives Inc. (a pharmacy benefit manager), Walgreens Mail Service Inc., Walgreens Home Care Inc., Walgreens Specialty Pharmacy LLC and SeniorMed LLC (a pharmacy provider to long-term care facilities). Walgreens Health and Wellness division includes Take Care Health Systems, the largest and most comprehensive manager of worksite health and wellness centers and in-store convenient care clinics, with more than 700 locations throughout the country.