Monday, August 26, 2013

Financial Implications to Government Pricing Programs

We're pleased to announce a new content partnership Huron Life Sciences. Each week they'll be sharing their latest insights on the Medicaid Rebate Process, Government Pricing & much more. Want to join them at this year's Medicaid Drug Rebate Program taking place September 9-11 in Chicago, IL? Save 15% when you mention XP1858BLOG to register. Today’s Author:  Dana Zelig

Don’t let the name fool you, this year’s Medicaid Drug Rebate Summit isn’t just for your Government Pricing teams. In fact, IIR projects that only 20% of conference attendees will be in GP-specific job functions. The largest group of participants, with a whopping 37% of attendees, will represent Contracting functions. For those new to the space that might seem like a head-scratcher, but industry veterans know that contracting decisions have a huge impact on Government Programs participation. For this reason, IIR has dedicated one of its four conference tracks to discussing the Financial Implications to Government Pricing Programs.

Showcasing speakers from pharma companies, law firms, and industry service providers, the Financial Implications track discusses how to maximize profit while ensuring compliance and managing the government as a customer. The Gross to Net and Accrue and Forecast sessions will discuss the importance of tracking commercial transactions accurately and efficiently to provide visibility into GP liability. Put simply, $1 million in sales for the quarter does not mean $1 million in profit. Once the books are closed, GP and Medicaid teams still have to pay Medicaid rebates, process chargebacks to PHS entities, and identify Best Price implications driven by discounted contract prices. Contracting teams will have to assess the Financial Impact of Fee for Service vs. Managed Medicaid contracting relationships, to identify the agreements that meet the company’s sales targets, as well as its compliance requirements.

To wrap up the day, the Clarify the Branded Drug Fee Calculation session helps to explain why Finance and Accounts Payable departments are now tracking the various sales to Federal entities and the need to collaborate with the GP department to develop joint Policies and Procedures. If you’re a GP Manager who has been trying to explain this joint accountability to your counterpart in A/P, the final session, The Evolution of the GP Professional – Working Across the Organization, will recognize your herculean efforts to reach across the aisle. As you have probably already realized, your job isn’t just about managing vertically, it’s about managing horizontally throughout all divisions of your company. The Financial Implications track will give you the tools you need to explain to those in your organization that we are all “covered employees” who need to work together to share the responsibility, and the success.

Have questions throughout the Summit? Come visit us at the Huron Life Sciences booth, or find us between the sessions to share your thoughts – they might make it into our blogs!

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