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Maximizing Revenue Moments Part 3: Reducing Non-Compliance Risk with Revenue Execution

by Jason Blessing , CEO February 27, 2019

In this three-part blog series, we’ve been discussing the growing Revenue Execution crisis. Companies face increasing uncertainty about the accuracy and integrity of their top-line revenue in the wake of digital disruption. Part of this stems from unrealized revenue: revenue leakage or money left on the table. On the other side is false revenue: exposure, liabilities and risk of commercial and government penalties. I’ll address the latter in the last entry in this series.

Digitization has increased the complexity of maximizing your true top line. This is particularly acute when it comes to compliance. With multiple pricing variables—markets, regions, business models, products, channels—infinite end-customer price points, and incentives, rebates and chargebacks spread across silos, adhering to contracts and regulations has never been more complicated. Even just one of these elements adds complexity. For instance, you adopt a new business model, only to find you’re caught up in an even larger regulatory web.

Life sciences companies know this pain all too well. You face a constant barrage of regulatory amendments and new reporting methods. You’re forced to process mounds of data and undertake complex calculations to ensure your business remains compliant. And you can face heavy penalties, not to mention reputation loss, if you make any error in government pricing calculations. Within the last four years, overcharge cases have doubled and carry an average penalty of $7.35 million per case.

But it’s not just life sciences companies that need to avoid mistakes before they happen. Contract compliance is equally important to high tech companies where discount and volume compliance has a direct impact on top-line revenue. Visibility into customer contract performance, comparing actual purchases to estimated volumes defined on the contract, is mandatory. You need to ensure you are giving the right price to the right customer the first time, avoiding the risk of contract non-compliance.

A complete revenue execution solution will help you adhere to complex contracts and ever-changing regulations in your industry. With visibility into every contract, transaction, price, rebate and adjustment and automatic regulatory update packs, Model N Revenue Cloud ensures customers remain completely up-to-date with major rule changes and avoid non-compliance. It’s why we’re committed to four-month release cycles and regulatory packs that keep you current on our SaaS platform.

The pharmaceutical company that is able to successfully understand and manage government compliance will benefit from top-line growth. The semiconductor company that has an accurate near real-time view of its channel while eliminating contract non-compliance will also grow its top line.

You need to do more than eliminate revenue leakage; you need to eliminate risk. Take it from the life sciences customer that was able to validate six years of legacy Medicaid claims in one day, eliminating risk, or the high tech company that eliminated $2 million in overpayments, compliance is a vital component of maximizing revenue at every moment.

To learn more, request a demo of Model N Revenue Execution Cloud.

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