Model N Industry Survey: Pharmaceutical Manufacturers Still Relying On Manual Processes To Meet DRA Requirements

Main Category: Pharma Industry / Biotech Industry
Article Date: 15 Sep 2008 - 13:00 PDT

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Model N, the leader in Revenue Management solutions, announced it will leverage its expertise on post-DRA operational best practices to deliver a hands-on exhibit and presentations at IIR's 13th Annual Medicaid Drug Rebate Program Conference this week in Chicago.

During the conference, Model N will discuss results from a recent survey of MDRP registrants that highlight the challenges pharmaceutical manufacturers face in meeting the requirements of the federal Deficit Reduction Act (DRA), which has shifted compliance focus from government to commercial practices. Data from the survey shows that in addition to still heavily relying on manual processes, a majority of manufacturers:

-- Have modified their pricing and contracting strategies and operations in the areas of bundled sales and authorized generics as a result of the DRA

-- Employ multiple methodologies in calculating government prices post DRA, and in some cases use multiple methodologies at a time

-- Anticipate and are planning for new Tricare legislation

-- Believe an end-to-end Revenue Management solution is required to meet the requirements of DRA and other pending legislation

"Responses to the survey show that increased regulatory scrutiny is forcing pharmaceutical leaders to address the gaps between their regulatory and commercial businesses. By aligning commercial and government strategies and practices, Revenue Management is helping companies overcome these regulatory challenges and achieve operational excellence especially in the areas of managed care, discount reallocation, fee-for-service, and Tricare rebates," said Ali Tore, Vice President of Life Sciences Product Management at Model N. "We look forward to listening, collaborating, and sharing insights and best practices with MDRP attendees to further our customers' success in the post-DRA business environment."

At MDRP, visitors to Model N's exhibit booth and breakout sessions will discover how this new commercial focus has made integrated Revenue Management a strategic imperative for life science companies. In addition to Model N sponsoring the event, the company's General Manager of Life Sciences, Sujay Jadhav, is official chair of the conference's Specific State Program Requirements and Tricare Hot Topics track.

Model N Sessions at IIR MDRP

Tuesday, Sept. 16, 1:30 p.m.

Post-DRA Integration of Pricing, Contracting, and Settlements Silos: Extending Regulatory Compliance into the Commercial Arena through Best Practices and Proven Solutions

Tuesday, Sept. 16, 2:15 p.m.

Roundtable Discussion: Lessons Learned in Implementing Changes for Complying with the DRA

"With more than 17 successful DRA implementations under our belt, Model N is taking a leadership position in addressing the impact of the DRA," said Mr. Jadhav. "Through presentations and interactive demos, Model N will give IIR MDRP attendees the opportunity to talk to industry experts and see first-hand how end-to-end Revenue Management can overcome DRA-related challenges to improve revenue planning and analysis and reduce the risk of regulatory non-compliance."

About Model N

Model N, the leader in Revenue Management solutions, offers an integrated, industry-optimized suite of applications that eliminates revenue leakage and reduces financial and regulatory risk for Life Science and High Tech organizations. Customers include: Boston Scientific Corp.; Bristol-Myers Squibb Co.; Cypress Semiconductor Corp.; Intersil Corp.; Linear Technology Corp.; Medtronic, Inc.; Microchip Technology, Inc.; Micron Technology Inc.; Ortho-Clinical Diagnostics, a Johnson & Johnson co.; ON Semiconductor, Inc.; Par Pharmaceutical Companies, Inc.; and Pfizer, Inc. Model N is located in Redwood Shores, California. For additional information, visit http://www.modeln.com.

Model N is a mark of Model N, Inc. All other company names mentioned are the property of their respective owners and are mentioned for identification purposes only.

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