The Vizient sourcing team recently contributed to a Health Industry Distributors Association (HIDA) white paper entitled “Improving Price Accuracy: Contract Communications Standards for the Healthcare Supply Chain.” The publication, aimed at improving pricing accuracy by standardizing contracting administration processes, marks the first time that all industry stakeholders – manufacturers, distributors, providers and GPOs – have come together to produce recommendations to address the issues surrounding pricing accuracy.

“Vizient has long recognized the challenges pricing inaccuracies across the supply chain present for members. As pricing models become increasingly complex, health care providers are spending progressively more time tracking and resolving inaccuracies,” said John Thompson, vice president, sourcing operations at Vizient.

Initially released during a special session at the 2014 HIDA Streamlining Healthcare Conference in Chicago and revised in 2017, the white paper details a set of procedures for automation of contract management processes, including price authorization acknowledgements, chargeback reconciliations, and manufacturer price/sales catalogs.

“Vizient fully supports the recommendations set forth in the paper, which were based on solid guiding principles, such as automation of processes, the use of GS1 standards and electronic data interchange (EDI) formats, and embracing contract negotiation deadlines that allow timely notice of contract changes,” said Thompson. “Industry-wide adoption of these principles could significantly reduce pricing inaccuracies.”

To access the white paper, click here.

Published: May 23, 2017