Preview: The Contracts and Chargebacks Solution on the MediLedger Network
In 2019, the Product Verification System on MediLedger was launched to enable the verification of saleable returned medicine in the US. This decentralized solution, powered by blockchain, has started the transformation of how companies in the Life Science industry will do business together. More than 95% of medication resold in the US will be verified on the MediLedger Network.
Today we are excited to share a brief preview of our newest commercial solution launching in 2021 on the MediLedger Network: Contracts & Chargebacks. This solution is aimed at resolving chargeback disputes and streamlining pricing and service to hospitals, pharmacies and other medication dispensers.
The sale and revenue realization of prescription medicine in this country is complicated. For pharmaceutical manufacturers, distributors and GPOs, the list of headaches is long: maintaining contract changes, determining customer eligibility, chargeback discrepancies, return discrepancies, etc. Companies have departments of heroic staff diligently making sure the data is up to date, the process runs as it is supposed to, and managing the dispute resolution where things didn’t line up. Industry estimates guess that 1–4% of a company’s revenue — that is $5–20 Billion industry wide — is being lost to leakage like incorrect pricing, duplicate chargebacks, omissions and mistakes. Who is winning? No one. And especially not the customer who often is subject to add-bills and re-bills.
Industry estimates guess that 1–4% of a company’s revenue — that is $5–20 Billion industry wide — is being lost to leakage.
We think we have created a better way.
With the Contracts and Chargeback solution on the MediLedger Network, we are connecting trading partners in a trusted network that ensures everyone can be aligned on the latest updates to customer or contract information, automating the analysis and impact of those updates, and ensuring the chargeback is accurate every time. No data needs to be shared with 3rd parties — all of the transactions take place between trading partners directly. Actually, you don’t even have to rely on your trading partners to do the process correctly — the system plays the role of adjudicator, and ensures the process runs correctly for every transaction. Every time.
We have been working with top manufacturers, distributors, and group purchasing organizations to understand the processes that take place between companies, and have developed a solution that solves everyone’s problems. A solution where everyone wins.
With Contracts & Chargebacks on MediLedger pharmaceutical manufacturers, distributors and GPOs can:
- Enforce their Business Rules in their Partner’s Systems - Trading partners can enforce rules on transactions and information sent to them, so mistakes are fixed at the source.
- Rely on Industry Wide 3rd Party Data - Participants operate on the same data from HIBCC, DEA and other sources through integrations directly with the network.
- Map Customer ID Between Trading Partners - Manufacturers establish customer identity on MediLedger so partners have clarity on the customer being discussed.
- Automate Eligibility Determination - Manufacturer’s can automate contract eligibility utilizing integrated data assessed against their own eligibility rules.
- Auto-Adjudicate Chargeback Claims: Distributors always have valid, up-to-date customer pricing so chargeback claims are always valid
- Research with Historical Data: Historical data and research tools enable rapid resolution for rare disputes
These benefits can create enormous value for all trading partners in the pharmaceutical industry and streamline pricing and service to dispensers.
Where does that value come from?
- Drastic reduction in disputes — and remaining disputes can be vetted quickly, bringing improved financial accuracy and potential reduction in corporate reserves
- Elimination of revenue leakage — everyone knows the process is working like it is supposed to
- Better use of working capital and human resources
- Better customer experience — reduced add-bills and re-bills — and assurance they are getting the right price every time.
The MediLedger Network is powered by blockchain, allowing the life science industry to operate in a connected, secure network and automate the business they do with each other. Contracts & Chargebacks (CBK) is the solution built on MediLedger Network to eliminate disputes in the chargeback process by aligning customer, product and contract data between trading partners in real time. Let’s break down how this exciting solution works to show you the future of how companies do business together.
The MediLedger Network — www.mediledger.com
The solution starts with the permissioned MediLedger Network, where every company in the network is onboarded: identifying who they are, and then associating their industry identifiers with them and registering that identity on the blockchain. Through this onboarding, only legitimate businesses have access to the network, and companies know they can securely exchange information with their trading partners.
GPO rosters, customer eligibility, contract updates and other proprietary data is shared with necessary trading partners through the peer-to-peer network, where every participant has complete control over their data and nothing proprietary can be leaked. Public data from 3rd party sources (HIBCC, DEA, etc…), product data, and authorized participants in the network are stored on the blockchain where everyone has access and can operate on the same set of data as their partners.
The key differentiation behind MediLedger is, through blockchain, the ability to enforce business rules on data and transactions before your trading partner sends them. For example in order for a new customer to be added to a GPO Roster it must meet the business rules established by a manufacturer.
The key differentiation behind MediLedger is the ability to enforce business rules on data and transactions before your trading partner sends them.
Validated data from trading partners means that internal automation can extend far beyond internal systems. MediLedger business rule enforcement eliminates disputes, ultimately streamlining and improving service to dispensers and patients.
Click here to read more about the step-by-step workflow through the MediLedger Network.
If you are interested in learning more email us at info@mediledger.com or go to Contact Us
