Following the award announcement, Mark Myers, Office of the Inspector General and Mel Noel, Compliance Implementation Services, led us into the first Key Note session, Veteran Affairs Pricing Compliance and Management Updates. They covered drug pricing, transferred cover drugs, and data issues. What is the best way to signify adherence to statutory requirements? Signing a master and pharmaceutical agreement. In terms of transferred covered drugs and new drugs, one of the biggest issues is lack of timely submission. The bottom line? Make sure that you file on time, manufacturers will be responsible for overchargers based on late filing.
Myers and Noel also covered the issues of placing patented drugs on FSS contracts. They explained that, in a world where covered drugs are more frequently manufactured or have API sourced in India or China, it has become impossible for VA to place many patented covered drugs on FSS contracts of MFRS trying to comply with VHCA. So what is the solution?
VA FSS managers have tried unsuccessfully to obtain a waiver from GSAs guidance to allow FSS listing of patented covered drugs that are manufactured in or have API sourced in countries that are not TAA designated countries.
Rick Zimmerer, KPMG LLP, closed out the morning session with Operational Excellence with Minimal Resources. Zimmerer discussed some important elements to successful optimization. So what are some of the key components? Make sure it's competitive, marketable, and profitable. It's also important to remember what executives are looking for - GP as a strategic function, so where do you start?
Start by defining the issue, clearly state what decisions are required. Is legal guidance required? What's the organizational, financial impact? Potential solutions to problem? Provide a recommendation and then develop a communication plan. Once you've created a tool, it's vital you provide both training and guidance to other GP professionals on how to use it. So overall, the key steps to apply for successful optimization are: record, analyze, present, decide, and communicate.