Government Pricing System Harmonization After A Merger Curt Fitzgerald – Associate Director Revenue Management Sachin Khanna – Principal Consultant – Government Pricing
Paragon Solutions, Inc. Proprietary
Government Pricing
TRICARE
340 B
TEXAS PRICE POINTS
AUDITS
GENERICS Vs BRAND
GROSS To
NET
MergerSTATE EXCHANGES or Acquisition
INJECTABLES
Paragon Solutions, Inc. Proprietary -2-
Managed Medicaid
Harmonize and Integrate Project Overview
Project Management Plan
Analysis
Harmonize
Integrate
Verify
Key Phase Deliverables •
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Project • Schedule and Scoping Identify Stakeholders Communication • Plan Organizational • Impact Assess Verification Plan Platform Sizing and Tuning
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Policy Alignment - Identify functional calculation differences Legal Review of the differences Source System Integration Analysis Re-Allocation Procedures
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Price Policy changes and signoff from legal Master Data Compare (COT/Customer, Product) Execution of policy changes Develop Organizational KPI Paragon Solutions, Inc. Proprietary -3-
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System and interface implementation Calculation Updates Organizational Alignment Single Standard Operating Procedures Interface Tie-Out
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Parallel testing if applicable Sampling of Transaction Data General Ledger Tie-Out Internal Audit Review Performance Monitoring
Pre/Post Considerations Back end system considerations • Environment sizing • Database advanced features – Partitioning, Replication etc. • Price type streamlining Separation of domain, pricing and transactional duplication • Customer - Customer - Customer Concurrent Integrations Post Integrations • Suspended state analysis for the “Orphan System” (Recuperate support costs) • Restatement plan
Paragon Solutions, Inc. Proprietary -4-
Real Benefits of Harmonization and Integration Organizational resilience to market and regulatory changes through the following: Simplify • Simplification of price committee governance • Simplification of legal review • Simplification of audit support Standardize • Training – Pricing team and systems support teams • Customer (COT), Product, Policy, Calculation Methods, Transactions • Single system performance improvements Eliminates risk through: • Minimizing inaccurate data • Eliminating dual operating procedures • Minimizing complex transactions. • Tighter tie out to the general ledger Paragon Solutions, Inc. Proprietary -5-
Thank You
Paragon Solutions, Inc. Proprietary -6-
Paragon Solutions, Inc. Proprietary -7-