BRAND MANUFACTURERS
Commercial Contract Management and Rebate ProcessingCommercial contract management and careful reconciliation of rebates and discounts dramatically influence your growth and profitability.
Contracts with commercial entities often include discount and/or rebate provisions intended to help pharma manufacturers secure a better position on the commercial company’s Preferred Drug List (PDL). Provisions in agreements become quite complex due to the creativity of the pharma company market access teams. Be sure to carefully model the financial impact of these agreements so that there is a solid understanding of the range of potential impact they will have on your growth, profitability and cash flow.
Build a database that incorporates the specific terms of all commercial contracts. Many have stiff penalties for late payments of discounts or rebates. Each one will normally have either monthly or quarterly reconciliation cycles. Additionally, build an SOP tailored to commercial contract rebate and discount reconciliation and payments; follow it and audit the work.
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How Prescription Analytics supports commercial contract management.
We are typically involved very early on in the sales and contract negotiation stages. Consequently, we can provide insight into terms and prepare the financial models to support the process. This enables you to make the best possible decision based upon what is known at the time of contracting. From there, once a contract is executed, we add the financial terms and required timing of reconciliation and payments to a database of client commercial contracts. As invoices flow out of these relationships, we reconcile them against the business and financial terms of the agreements and provide you with a comprehensive report to support payments.
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