CaptureRx, a San Antonio-based healthcare technology company, announced on Thursday the relocation of its expanded corporate headquarters in the downtown tech district on East Houston Street. Architects and space planners will design the offices on five of the six floors in the historic Kress building.
The company currently is located at 219 E. Houston St. and plans to move its expanded headquarters to the Kress building at 311 E. Houston St. in early 2018. GrayStreet Partners bought the property in June 2016. On the north side of the street, GrayStreet properties span from the Court Building to the parking lot east of the Kress Building, while GrayStreet owns Walgreens and the Valencia on the south side of the street.
According to documents filed online, City Council approved tax abatements as an incentive for the headquarters’ expansion. CaptureRx will receive a six-year 100 percent tax abatement of real and personal property taxes valued at approximately $309,000, in addition to city fee waivers and a San Antonio Water System impact fee waiver of $158,160.
Bexar County Judge Nelson Wolff confirmed that the County approved the abatement of property taxes over the next 10 years after the press conference on the fifth floor of the Kress building.
CaptureRx has agreed to invest about $10.5 million in property improvements to the Kress building, retain its 114 full-time jobs, and create an additional 200 full-time jobs within six years. In exchange, the company will receive a performance-based Economic Development Incentive Fund (EDIF) grant of up to $614,000 and a nomination as a Texas Enterprise Zone Project, said City Manager Sheryl Sculley.
The Texas Enterprise Zone Project designation allows the company to apply for state sales and use tax refunds on qualified expenditures such as building materials or property purchased for the business.
The company will offer a guaranteed minimum hourly rate of $25, regardless of the employee’s position, to all 314 of its employees. This rate would be equivalent to $52,000 per year for full-time employees, according to Chris Hotchkiss, CaptureRx’s board chairman.
Ed Gilmartin and Hotchkiss co-founded the company in 2000. In September 2016, the company’s President Dave Byrd succeeded Hotchkiss as CEO.
As the company looked for a place to expand its operations, other cities competed to entice CaptureRx to leave San Antonio.
“Other locations offered us incentives,” said Anne Bowman, Capture Rx’s senior vice president of customer obsession, in a phone interview. “We had offers from both Naples, Fla., and Kansas City, Mo.”
However, the homegrown company decided to establish its expanded office in the heart of the growing tech corridor in downtown San Antonio.
“We believe that San Antonio is a city to invest in,” Bowman said. “Our long-term goal is to stay here, because we believe there’s lot of opportunities for growth here.”
Both Bowman and Capture Rx’s Chief Operating Officer Kernie Brashier agree that San Antonio is home to a burgeoning community of local talent. New tech companies continue to augment the tech ecosystem and industry leaders such as Rackspace and Geekdom act as viable incubators for tech talent as well. The new positions will primarily be in development and customer service roles.
“We are certain to find the right talent to fill the new positions that will be created,” Bowman said.
Leader in 340B IT Solutions
CaptureRx has become a leading provider of 340B solutions to hospitals, health centers, pharmacies, and managed care organizations. The federal 340B Drug Discount Pricing Program requires drug manufacturers to provide outpatient drugs to eligible healthcare organizations at significantly reduced prices.
Discounted outpatient prescription drugs are provided to qualified healthcare providers, including federally qualified health centers. Many of these centers are based in areas with little or no other healthcare alternatives. Because the 340B drug discount program is an essential component of the healthcare safety net, drug savings are typically reinvested into patient care at these health centers.
That’s where companies who specialize in managing the 340B program come in.
CaptureRx uses its customized IT platform to manage inventory and the flow of financial transactions for 340B prescriptions filled at contract pharmacies and performs required eligibility checks. Its proprietary platform is used by prescription drug buyers, healthcare providers, pharmacies, and patients. Its Cumulus® platform is currently in use at 500 hospitals and health centers across 45 states via a pharmacy network, as well as in about 2,700 pharmacies via 340B partnerships.
“We were one of the first companies to automate the 340B process – everyone else has been playing catch-up ever since,” Bowman said.
Discounted purchases using the 340B drug discount program totaled $12 billion in 2015, an increase of 67% compared to 2013. With hospitals as the largest buyer of discounted 340B program drugs, the 340B program is projected to dominate the hospital discount drug market. Contract 340B pharmacies such as Walgreens are joining the growing sector.
“By the end of 2020 we should be serving 5 million unique patient lives on an annual basis,” Bowman said, elaborating on the company’s goal for projected growth.
CaptureRx has partnered with San Antonio’s Promoter.io to use its net promoter score as an internal metric to measure the company’s ability to engage successfully with customers. Once implemented, CaptureRx will use this metric as a leading indicator of its growth.
CaptureRx leaders are confident in the company’s future growth and have already started looking at extra square footage in the Kress building or nearby, according to Brashier.
“The extra space will help accommodate our plans for future growth,” Bowman said.