This is the area of a commercialization plan commonly referred to as government contract management or government pricing. The range of work is actually much broader and requires that you engage in numerous activities to be compliant with the various government programs.
Approximately 90 percent of all prescriptions filled in the United States are generic products. Of those, more than 50 percent are paid through an assortment of state and federal government programs.
Most generic pharmaceutical manufacturers will find it important to evaluate and consider including government contracting as part of a comprehensive commercialization plan.
The processes for securing government contracts usually aren’t complicated. But contracts like the VA/FSS application process is an exception. It is complicated and requires a lengthy application process.
All of the programs contractually obligate you to participate in rebate or discount programs, or some type of negotiated pricing arrangement. Most programs contain multi-faceted price computations. The processes involve strict time constraints and subject you to penalties for noncompliance. If you decide to pursue government contracts, we encourage you to maintain fully compliant standard operation procedures (SOPs) to ensure you organize data, classify sales and compute government values properly.