HIDA, Members Cheer Permanent Repeal Of Medical Device Tax - Supply Chain Collaborative Newsletter
Market Advisor Wound Care

Healthcare manufacturers and distributors can more efficiently process chargeback requests by following recommendations in new Chargeback Rejection Code Guidance. We and other members of the Chargeback Reconciliation Workgroup have been working for more than two years to develop this guidance, building on the list of standard rejection codes delivered in 2019.

The new guidance recommends that manufacturers give distributors direction on automatic “stops” in the approval phase and specify primary and supplemental reasons for rejections.

Not familiar with chargeback processing? You may be benefiting from this complicated system without realizing it. Chargebacks are an essential component of contract administration, allowing distributors to honor pricing discounts to providers and then be “made whole” by the manufacturer.

If you’re a manufacturer or distributor involved in this process, we encourage you to follow this guidance and integrate the standard chargeback rejection codes into your process. -McKesson Senior Manager Jennifer Whitehead & BD Associate Director Harry Brubeck
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The COVID-19 pandemic has unraveled the global supply chain for medical masks as U.S. manufacturers work in record time to stoke production at home. Medical masks were mainly produced overseas before the pandemic, particularly in China. Now, American companies are investing in expansions to make more masks in the U.S. response to requests from hospitals and governments seeking a guaranteed domestic supply for several years. The reinvented supply chain means that producers of the machines and materials needed to assemble N95 masks are ramping up production as well. The added capacity won't exceed domestic N95 demand until winter when the U.S. will be producing 180 million N95 masks per month, according to FEMA.
Wall Street Journal►
Value Analysis
Opportunistic middlemen seeking a profit from the pandemic aim to score billions of dollars in federal COVID-19 contracts, their stake as small as a mailbox rental or virtual office subscription. Some never touch the product and simply buy it from a manufacturer to resell directly to the government, often at a high markup. One in 10 federal COVID-19 vendors are government contracting newcomers, many without prior experience in healthcare. The contracting market has become confusing for purchasing officers trying to determine which vendors are credible as the federal government eases vendor competition standards. Nearly 10% of vendors that received a COVID-19 contract without competition listed a residence for their address, often the sign of a middleman. The government has spent more than $2.7 billion nationwide to vendors that are completely new to the market and about $5 billion to hundreds of companies classified as wholesalers, according to an analysis.
USA Today► 
The closure of many state Department of Motor Vehicle (DMV) facilities and commercial driving training facilities risks cutting off the national supply chain, according to the Commercial Vehicle Training Association (CVTA). These closures leave many future drivers unable to obtain commercial learner's permits (CLPs) and commercial driver's licenses (CDLs). Disrupting the process of getting 25,000-40,000 new truck drivers trained, licensed, and on the road impacts several major industries and the U.S. supply chain. The U.S. Department of Homeland Security's guidance defines transportation workers as critical workforce. This includes employees supporting or enabling transportation functions such as truck drivers, bus drivers, DMV employees, and those involved in "credentialing, vetting and licensing operations" for this industry. Despite this clarification, states seem to have conflicting opinions on national guidelines. CVTA is urging state governors to enact executive orders to recognize CDL training schools and State Driver Licensing Agencies (SLDAs) as "essential services" while granting the Secretary of Transportation temporary authority to administer CLP or CDL testing due to facilities closing. 
Fleet Owner►
Category Management
The pandemic has accelerated the need for technology and digital capabilities, highlighting the importance of data and virtual monitoring of patients while hospitals focus on patients infected with COVID-19. Hospitals are utilizing predictive analytic tools to forecast the location and severity of upcoming COVID-19 and increasingly investing in business intelligence analytics to better understand patients and customize their experience. More value is being placed on the digital experience as hospitals and health systems see their "digital front door" as the first impression potential patients get, potentially making or breaking a system's reputation. Artificial intelligence (AI) chatbots, which provide patients with essential communication, have emerged. With the shift to virtual and remote care, wearable devices and smart technologies are gaining more traction as tools to deliver providers with real-time patient care insights.
Becker's Hospital Review►
Category Management
  • COVID-19 U.S. Weekly | State-By-State  Now includes a chart reporting patient visits for influenza-like illness by age demographic for the 2019-2020 flu season

  • Key Advocacy Issues
    • COVID-19 Resource Center: Get supply chain news and resources of particular interest to distributors, manufacturers, and other industry stakeholders.