Medco Layoffs Likely

By Lynn, Kathleen | The Record (Bergen County, NJ), April 3, 2012 | Go to article overview

Medco Layoffs Likely


Lynn, Kathleen, The Record (Bergen County, NJ)


The $29.1 billion takeover of Franklin Lakes-based Medco Health Solutions Inc. by Express Scripts Inc. is likely to lead to job cuts among Medco's 2,000-plus employees in Bergen County, analysts said Monday.

"Express Scripts management will be running the combined company, and in my opinion, there will absolutely be layoffs at Medco," said Anthony Vendetti, an analyst who follows Express Scripts for Maxim Group in New York. "How many, I don't know. But there's not going to be two accounting departments, two human resources departments, two legal departments" in the combined company.

The acquisition of Medco was announced Monday, after the Federal Trade Commission ruled that combining the two pharmacy benefits giants would not violate antitrust laws. The combined benefits manager will handle nearly one of every three prescriptions written in the United States.

The takeover "represents the next chapter of our mission to lower costs, drive out waste in health care and improve patient health," said Express Scripts Chief Executive Officer George Paz in a statement. Paz visited the former Medco headquarters in Franklin Lakes to speak to workers Monday.

A spokesman for St. Louis-based Express Scripts said the merger's impact on the 4,000 Medco employees in New Jersey has not been determined. Medco is one of Bergen County's largest employers.

"We wouldn't speculate on any specific site or part of the organization," said the Express Scripts spokesman, Brian Henry. "We will conduct a thorough analysis of our workforce, taking into account the needs of each business and each marketplace, to ensure we are best positioned to serve clients' and patients' needs while achieving a competitive cost structure."

Express Scripts said the merger is expected to save $1 billion in one-time costs. A Wall Street analyst who spoke on background said that to achieve that number, Express Scripts would need to make "some major job cuts," and he predicted that many would be in New Jersey.

"Some people are going to have to find somewhere else to work," said Morningstar analyst Matthew Coffina in Chicago.

Jon Green, an analyst with New York-based Murphy & Durieu, predicted job cuts could take two or three years as Express Scripts decides which employees to keep.

"It is somewhat of a unique industry," Green said, adding the company doesn't want to lay off people whose skills are hard to replace.

Medco's North Jersey employees work at the Franklin Lakes headquarters and in rented space in Montvale, mostly in finance, technology, sales, marketing, account management and data analysis.

The company also has also a highly automated mail-order pharmacy that employs about 1,200 people in Willingboro.

Pharmacy benefits managers handle drug benefits for employer health plans and negotiate discounts with pharmaceutical companies and drugstore chains.

Employees outside company headquarters declined to comment on the merger Monday. One who did not give his name said that there was no news yet on potential job cuts, saying, "It's a wait-and-see game. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Medco Layoffs Likely
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.