4 Insights From HIDA’s Contract Administration Conference

Data Automation Becoming The Norm

Contract Administration Conference: Data Automation Becoming The Norm

May 21, 2018

Chargeback processes need simplification. Roundtable participants discussed ways to reduce chargeback denials and complexity between trading partners. Well-defined and easy-to-understand chargeback denial codes would help facilitate the reconciliation process, as would adopting one standard approach for communicating and responding to denials. HIDA and its members are working on a solution to this problem, and expect further developments in the near future.

Routine communication improves efficiency. Justin Albers, Captis, said that his regional supply network holds monthly calls with distributors, in addition to its routine account calls. Getting on the phone regularly with both internal and external counterparts can help ensure both organizations are aligned on big-picture issues. Involving multiple stakeholders on these updates can also lead to end-to-end process improvements.

Sales and contract data automation is becoming the norm. Presenters from Nestlé Health Science observed that a 1% difference in chargeback data accuracy represents over 20,000 error lines for their company. Many manufacturers and distributors advocated for information-sharing via EDI (electronic data interchange) formats as a key way to reduce chargeback and other contracting errors.

New technologies hold promise for contract administration. Both speakers and attendees identified smart (self-executing) contracts and Blockchain as two technology applications that have tremendous contract operations potential. In addition to enhanced security, these new technologies hold the potential to reduce administrative overhead and better connect contract communication platforms.

About HIDA
The Health Industry Distributors Association (HIDA) is the premier trade association representing medical products distribution. HIDA members offer services that increase the efficiency of the nation's hospitals, nursing homes, physician practices, and other healthcare providers. For more information, visit www.HIDA.org. For more information on HIDA’s Streamlining Healthcare initiative, visit www.StreamliningHealthcare.org.

Media Contact:

Sharon Cohen»
Communications Director
HIDA, 703-838-6104