All About Chargebacks
Pharmaceutical manufacturers sell their products to wholesalers either at Wholesale Acquisition Cost (WAC) or at direct contract prices with wholesalers. Manufacturers also contractually engage with Group Purchasing Organizations (GPO), wholesalers Source programs, Public Health Services Program (PHS) and Veteran Affairs (VA) Federal Supply Schedule (FSS).
Pharmaceutical chargeback is the difference between the wholesaler purchase price and the contract price of the pharmacy or hospital, purchasing the product from the wholesaler based on the contract with the manufacturer.
A chargeback claim must contain information about the customer, product, contract number and pricing, number of units purchased, invoice number, and a date of a sale.
Relasoft chargeback validation checks each chargeback claim line to ensure that the submitted customer was eligible to buy on the specified contract, the item was on the contract on the date of sale, the submitted pricing was correct, and by many other standard and custom criteria, reflecting contractual specifics of the manufacturer.
No matter the volume, Relasoft solution is best in class and provides the most accurate and fastest chargeback processing available on the market.
Features and Benefits
- Reads chargebacks submitted as EDI 844, Excel and CSV
- Automatically processes EDI and file-based resubmissions
- Offers the most sophisticated fully-automated auto-correction tools
- Performs superb validation for all standard errors and additional rules to support the most elaborate sales agreements
- Advanced handling of GPO rosters
- Automatically shares chargeback data with Rebate module and Gross-To-Net for chargeback accruals and forecasting, with no data feeds preparation required
- Integrates with any ERP and accounting software, from QuickBooks to SAP. Ready Integrator tools are available for a number of ERP
Built-in EDI translaction, with no license or volume-based fees
A payment reconciliation process fine-tuned to perfection
- Takes proper care of Classes of Trade and reflects specifics for PHS and FSS contracts, and is 100% compliant with all CMS requirements for Government Pricing
- Offers hundreds of reports covering all aspects of chargeback processing. Find top indirect customers; monitor performance by contract, products, wholesaler, territory, class of trade, GPO and other factors; track wholesaler inventory levels by distribution centers, have full audit transparency, watch sales trends, etc.
- Runs locally or in the cloud
- The most cost-efficient solution on the market because of minimal or none license fees, payable to third parties. For example, there are no licenses or volume-based fees for EDI translation, for integration with ERPs, Salesforce.com, etc. Even the database management tool may require no licenses. The manufacturer savings can easily reach tens of thousands of dollars per year.
- Provides the highest processing efficiency to 3PL companies
- Relies on Rich Client interface as the fastest and most reliable
- Has no exposure to internet hacker attacks and guarantees the safest processing environment
Software or Managed Services
Chargeback processing can be either delegated to Relasoft or done in-house.
Both options support integration with the manufacturer’s ERP, carry the same functionality and are cost-efficient.
The manufacturer decides which processing option works best. The options can be changed any time.
Relasoft Chargebacks Solution is a part of the Relasoft Pharma Suite platform, that takes care of all Revenue Management tasks, faced by the manufacturer: commercial rebates, Government Pricing, Government Contracts, Medicad, Medicare Coverage Gap, Tricare, AR, Gross-to-Net Proftability Analysis, Purchase Order Processing and EDI.
Manufacturer decides which Pharma Suite modules should be deployed, and when.