government pricing system harmonization after a merger
DESCRIPTION
With increasing consolidation, globalization and regulation in the life sciences industry, managed care organizations have an even greater need to successfully align business strategies, processes and systems across the enterprise to remain competitive. Investing in a revenue management solution that allows for integration of customer, contract, product, marketing, financial, reporting and analytical systems enables organizations to effectively: - Implement pricing strategies - Enforce deal analysis discipline - Track and align discounts with product sales - Manage “best price” and other government required terms - Manage contract sales opportunities and channel relationships - Execute timely, error-free trade incentive payments As a result, organizations reduce regulatory compliance risk, improve customer satisfaction, and reduce sales and operations costs to save millions annually. Achieving compliant price calculations across price types is an absolute necessity. While this is mandatory, value can also be extracted by the government pricing function to improve client relationships, increase product portfolio performance, and capture revenue enhancement through more informed price decisions.TRANSCRIPT
Paragon Solutions, Inc. Proprietary
Government Pricing System
Harmonization After A Merger
Curt Fitzgerald – Associate Director Revenue Management
Sachin Khanna – Principal Consultant – Government Pricing
Paragon Solutions, Inc. Proprietary - 2 -
Government Pricing
340 B TEXAS PRICE
POINTS
INJECTABLES Managed Medicaid
AUDITS
GENERICS Vs
BRAND
GROSS To
NET
TRICARE
STATE EXCHANGES
Merger or Acquisition
Paragon Solutions, Inc. Proprietary - 3 -
Harmonize and Integrate Project Overview
Project Management
Plan Analysis Integrate Verify Harmonize
Key Phase Deliverables • Project
Schedule and Scoping
• Identify Stakeholders
• Communication Plan
• Organizational Impact Assess
• Verification Plan • Platform Sizing
and Tuning
• Policy Alignment - Identify functional calculation differences
• Legal Review of the differences
• Source System Integration Analysis
• Re-Allocation Procedures
• Price Policy changes and signoff from legal
• Master Data Compare (COT/Customer, Product)
• Execution of policy changes
• Develop Organizational KPI
• System and interface implementation
• Calculation Updates
• Organizational Alignment
• Single Standard Operating Procedures
• Interface Tie-Out
• Parallel testing if applicable
• Sampling of Transaction Data
• General Ledger Tie-Out
• Internal Audit Review
• Performance Monitoring
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Pre/Post Considerations
Back end system considerations
• Environment sizing • Database advanced features – Partitioning, Replication etc. • Price type streamlining
Separation of domain, pricing and transactional duplication • Customer - Customer - Customer
Concurrent Integrations Post Integrations
• Suspended state analysis for the “Orphan System” (Recuperate support costs) • Restatement plan
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Real Benefits of Harmonization and Integration
Organizational resilience to market and regulatory changes through the
following: Simplify
• Simplification of price committee governance • Simplification of legal review • Simplification of audit support
Standardize • Training – Pricing team and systems support teams • Customer (COT), Product, Policy, Calculation Methods,
Transactions • Single system performance improvements
Eliminates risk through: • Minimizing inaccurate data • Eliminating dual operating procedures • Minimizing complex transactions. • Tighter tie out to the general ledger
Paragon Solutions, Inc. Proprietary - 6 -
Thank You
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