PacifiCare Health Systems Inc. on Wednesday said it’s considering Kansas as a spot for a mail order distribution center that could employ as many as 850 people.
The Cypress-based health plan provider is looking at Overland Park, Kan., to possibly house the mail order distribution center for its Prescription Solution drug benefit management unit.
The Kansas City Star first reported the news Wednesday.
Costa Mesa-based Prescription Solutions is set to propose to open a center in the Kansas City suburb in return for $10.6 million in state and local tax incentives, including a property tax abatement (decrease) from city officials, according to the paper.
A decision on the new facility’s location has not been made yet, said PacifiCare spokeswoman Cheryl Randolph. The company is considering other possible locations outside of California, she said.
The Kansas Department of Commerce identified Prescription Solutions in the article, although the company had requested anonymity until a public announcement was made.
Overland Park officials said that if Prescription Solutions comes to the area, the unit could invest up to $50 million and employment would eventually rise to 1,300 from the initial 850 jobs.
Prescription Solutions is looking to expand primarily based on increasing demand for prescriptions, including the pending introduction of Medicare Part D, the prescription drug program, in 2006.
Prescription Solutions’ facilities include a pair of mail-order distribution centers just over the Orange and San Diego counties line in Carlsbad, which is set not to be affected by any expansion.
Prescription Solutions is one of PacifiCare’s fastest-growing units. In the fourth quarter, its revenue grew to $194 million, up 47% from a year-ago.
