Matrix Healthcare Services Inc. Wins $508 Million Contract to Provide Pharmacy Benefit Management Services for US Department of Labor: GAO Decision

Matrix Healthcare Services Inc. has been granted the ability to keep a $508 million contract to provide pharmacy benefit management services for the US Department of Labor, according to a recent decision by the Government Accountability Office (GAO). The GAO ruled that Optum Workers Compensation Services of Florida, which does business as PMSI LLC and protested the contract award, failed to demonstrate that the department conducted an unfair evaluation of past performance. Optum alleged that the Department of Labor failed to consider whether Matrix’s past performance examples were contracts that were actually performed by Express Scripts Inc., the parent company of Matrix. However, the GAO rejected this claim, stating that Matrix’s proposal included several references to their intended reliance on Express Script’s resources. Additionally, the GAO found that Matrix had provided sufficient evidence of its past performance as a pharmacy benefit manager. This decision marks a significant victory for Matrix Healthcare Services, which will now be able to continue providing pharmacy benefit management services to the Department of Labor. The contract is worth $508 million and covers a period of five years, with the option to extend for an additional five years. Pharmacy benefit management services are an important aspect of healthcare management, particularly in the United States. They involve the administration of prescription drug benefits for health plans, including the management of drug formularies, negotiation of drug prices with manufacturers, and processing of claims. Pharmacy benefit managers play a critical role in controlling healthcare costs by promoting the use of lower-cost generic drugs and negotiating discounts with drug manufacturers. The decision by the GAO underscores the importance of past performance evaluations in government contracting. Past performance is a crucial factor in determining which companies are awarded government contracts, as it provides insight into a company’s ability to successfully perform similar work. This decision also highlights the need for companies to provide clear and accurate information in their proposals, including references to any resources or partnerships that may be relied upon. Overall, the decision by the GAO to allow Matrix Healthcare Services to retain their contract with the Department of Labor is a positive development for the company and for the healthcare industry as a whole. It ensures that the Department of Labor will continue to receive high-quality pharmacy benefit management services, and underscores the importance of fair and thorough evaluations of past performance in government contracting.