Sierra, pharmacy company settle suit

Tuesday, April 21, 1998 | 10:10 a.m.

Sierra Health Services of Las Vegas has settled a contract dispute with Pro-Mark Holdings Inc. whereby Pro-Mark will continue providing pharmacy benefits to Sierra customers.

A conflict in interpreting the wording of a contract led to a billing dispute.

"Our interpretation was that is was a flat fee per month," said Maria Carlson, vice president of investor and public relations for Sierra.

Attempts to contact Pro-Mark's parent company, MIM Corp., failed.

Pro-Mark had attempted to bill Sierra for increases in the number of expected prescriptions between October and December 1997, sending an invoice for $4.1 million. Sierra responded 80 percent of that amount had already been paid under the contract.

When Sierra refused to pay, Pro-Mark moved to terminate the contract, leading to a suit filed by Sierra seeking an injunction. The settlement dismisses all litigation.

The contract has been amended to a pay-for-service process that includes both sides sharing some risks.

Sierra operates Health Plan of Nevada Inc. as well as HMO Texas L.C. and Sierra Health Options Inc.

The contract covers about 250,000 people, approximately 90 percent of whom are in the Las Vegas area, said Carlson.