Institutional Rebates

Avoiding Revenue Loss with Commercial Customer Incentives

In a recent survey, more than 50% of companies felt they were overpaying rebates — a severe source of revenue leakage. For pharmaceutical manufacturers, the complex agreement structures and difficulties in determining customer eligibility add to these challenges. Lack of accuracy can lead to overpayments and create compliance exposure around consistent, auditable processes.

Model N Institutional Rebates

Model N Institutional Rebates eliminates overpayments and compliance exposure by automating rebate management processes, from setting up rebate programs on contracts, to calculating and managing rebates as they accrue, to effecting accurate and timely payments to eligible customers.

The Model N Institutional Rebates application eliminates errors and potential overpayments by ensuring the accuracy of payment processing rules and conditions. It supports complex rebate terms, allowing sales to develop compelling programs that maximize market share. It ensures regulatory compliance by providing full auditability and management of business processes, and provides risk mitigation by ensuring that payments are paid only after proper review and approvals.

Delivering Faster, More Accurate Incentive Payments

Model N Institutional Rebates handles all the key elements of commercial rebate programs, including qualifications, benefits, timeframes, and payment details. Upon implementation of a contract, payments are automatically scheduled and tracking is initiated. Any subsequent contract changes or amendments automatically update the rebate programs as necessary — with no manual intervention required.

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

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

Institutional Rebates at a Glance