Pharmaceutical Manufactures must be flexible and able to quickly adopt new paradigms in today's climate
The Healthcare Reform (HCR) Act is impacting pharmaceutical companies both financially and operationally.
Manufactures are now required to pay increasing rebates to both state and federal government. These include higher Medicaid base rebate percentages, higher Medicaid rebates due to changes to the Average Manufacturer Price (AMP) calculations, and new rebates when Medicare Part D participants are within the “donut hole”. In addition manufactures will incur higher rebate payments on Managed Medicaid plan utilization, increases in chargebacks due to more PHS organizations qualifying for 340B pricing, and the new annual fee to be paid to CMS for brand manufacturers.
These changes will have a substantial impact on manufactures operations, new compliance challenges, additional validation requirements, and innovative negotiation strategies and increased processing volumes. Some of the key changes that need to be addressed are: enhancement of contract management and government pricing application, augmenting staff, outsourcing portions of the business in order to keep up with the new demands while reducing costs.
Companies which have an effective strategy will have a competitive advantage over the competition. Collaborative has been assisting clients address these issues and is prepared to have a discussion with you to determine if we could help you achieve your goals.
