Chargeback Processing

The pharmaceutical industry is devoting significant manpower resources to the processing of chargebacks. A largely manual process due to the lack of integration, results in significant overcharging of manufacturers by their trading partners. The somewhat cavalier attitude that sometimes you win, sometimes you lose, results in substantial loss of revenue that should have flown to the bottom line. For brands with significant sales, multiple types of contracts and a dynamic contracting policy rewarding customer loyalty and purchase volume discounts, the loss of revenue can be measured in millions of dollars.

Sintan has developed a powerful technology driven process solution to detect such overcharges and adjust the payments due to trading partners. In addition to correcting overpayments, errors in applying the correct price for a customer transaction are detected early, thus minimizing the long term impact.

In addition to the standard transaction matching between the 867, 844 or 849 EDI feeds, Sintan goes one step further and verifies the best price that the customer has been entitled to, at the moment the purchase was made. In order to do this the contracting system and GPO membership management need to be integrated in the solution. For customers using the Sintan Contracting system this is part of the solution footprint. For other companies, Sintan can implement integration interfaces and deploy the necessary engines to automate this process.

The management console provides the analytical underpinning for the whole process, allowing the customer to analyze the flagged transactions by brand(s), customers or customer groupings, volume, financial impact and chronology. Multiple drill-downs allow the identification of the problem (internal or external) and provide the supporting detail for chargeback modification and resolution.