Admin Fees

Avoiding Revenue Loss on Group Contracts

Group purchasing organization (GPO) contracts account for a significant portion
of many life science companies’ revenue. Yet in a recent industry survey, over 50% of
companies questioned whether they overpaid rebates and fees — a severe source
of revenue leakage.

On group contracts, the difficulty of managing customer membership and contract eligibility amplifies these challenges. Lack of process and membership data controls can lead to overpayments and compliance exposure.

Model N Admin Fees

MModel N Admin Fees solves these problems by automating admin fee management processes — including creating and managing GPO membership lists, setting up programs on GPO contracts, calculating and managing fees as they accrue, and accurately calculating payments based on membership and eligibility changes.

The Model N Admin Fees application ensures accurate calculations, eliminating errors and potential overpayments by incorporating and validating incoming requests against fee programs and contracted terms. It reduces processing time and enables timely payments. It ensures compliance by providing full auditability and management of business processes, and it mitigates risk by making sure that payments are paid only after proper review and approvals.

Delivering Faster, More Accurate Payments

Model N Admin Fees handles all the key elements of admin fee programs — including membership and eligibility, qualifications, benefits, and timeframes. Upon implementation of a contract, payments are automatically scheduled and tracking is initiated. Any subsequent contract changes automatically update the admin fee programs as necessary — with no manual intervention required.

Direct, chargeback, and third-party sales data (e.g., IMS data) can be imported into the system. Once validated and accepted, sales lines are automatically bucketed into the appropriate fee payments, building accruals as each payment period progresses. At the end of the period, the application automatically performs calculations and presents the results to the analyst for review and adjustment.

The analyst is proactively notified when a payment is due to be processed and is presented with a prioritized to-do list of all payments requiring attention. Workflow simplifies the process of obtaining the necessary approvals on payments due. Notifications remind managers if a payment is not finalized within the required timeframe. The system is linked to back-end financial systems to ensure accurate
and timely payment processing. If adjustments are needed after a payment has been made, reversal and adjustment capabilities allow original payments to be backed out or reapplied against a new payment.

Admin Fees at a Glance