Model N Takes Lead With Customers In Rapidly Addressing Health Care Reform Impacts on Pharma Manufacturers

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Model N Customers Already In Production With Health Care Reform Updates (HCRPaks) and Actively Involved in Jointly Developing Roadmap to Ensure Readiness For Next Phase of Requirements

Fresh on the heels of the Deficit Reduction Act (DRA), health care reform legislation once again dramatically shifts the operational landscape for pharma manufacturers and creates strategic imperatives for revenue planning, commercial and government market strategy, and management of impacts to the bottom line

Model N, Inc., the leader in Revenue Management solutions, today announced that one month and seven days after President Obama signed health care reform into law, Model N has delivered health care reform updates (HCRPaks) to its pharmaceuticals customers who have already successfully deployed the HCRPaks into production. In addition, Model N has launched a comprehensive program to help both customers and the industry at large successfully respond to the tactical and strategic challenges emanating from the legislation. This broad-ranging program offers collaborative development and planning, a series of personalized programs for customers, informational forums and tools, and opportunities to engage customers and the industry in exchanges to promote a best practices response to health care reform (HCR).

Once again, pharmaceutical manufacturers are facing a shifting business landscape. The industry-relevant provisions of HCR make several operational changes to government programs processes. Some of the impact of these new provisions, such as Medicaid rebate increases, expansion of 340B eligible facilities, and alterations to AMP price type definition, will be felt almost immediately, while other important business functions such as commercial pricing and discounting strategy and business development strategy are likely to be impacted over time.

Preliminary results from an ongoing Model N industry survey of HCR impacts, a key element of Model N's HCR programs, show that a majority of manufacturers feel the new legislation will create an equal or greater operational burden than the Deficit Reduction Act of 2005, which imposed significant changes to how the industry reports AMP to the government. Model N was quick to begin its response to HCR in order to rapidly address the necessary operational changes and is actively engaging its community of customers, partners, and industry experts to keep abreast of CMS guidance and other legal updates. An overview of Model N's HCR program includes:

Model N Health Care Reform Programs

  •     HCR Advisory Board: Model N has assembled a distinguished group of industry leaders, including legal experts, consultants, and manufacturers, to guide its HCR planning and response and to share their perspectives and recommendations with the Model N community. In addition, the company has formed an HCR Solution Leadership Team that is actively engaging the most forward-looking customers for input into product management, professional services, and support.
  •     Solutions Roadmap: Model N has aligned its product management and development organizations to collaborate closely with customers in delivering Health Care Reform Packs (HCRpaks) to the market on a regular schedule aligned with reform mandates. HCRpaks address health care reform-specific changes without requiring a software upgrade.
  •     Events and Workshops: Model N is offering the following options for manufacturers interested in exploring the impacts of HCR on their organizations:
  • Executive Workshop: Options for Crafting an HCR Business Transformation Roadmap

Financial, IT, and compliance executives and managers alike will benefit from this free onsite workshop that will discuss frameworks for assessing HCR requirements that uniquely affect their business

  • Needs Assessment Workshop

This high-impact engagement enables companies to assess their regulatory risk exposure from HCR by capturing specific findings on areas relating to foundational strategy, data, systems, policy, and process improvements

  • CBI Medicaid Rebates Conference

In addition to sponsoring the 12th annual event next week in Orlando, Model N will be discussing how to leverage predictive analytics to assess the impact of HCR on product portfolios

  • Rainmaker Impact: Navigating Reform - June 22 in Philadelphia

Based on requests from many customers who could not attend Rainmaker 2010 this past February, Model N is hosting an event in on June 22 in Philadelphia that will showcase the most current health care reform developments as well as offer updated highlights from Rainmaker 2010 and relevant customer sessions and discussions

  • Web Seminars, Videos, Forums, and More

Model N's online health care reform portal ( features a host of offerings, including videos from leading industry legal experts, on-demand Web Seminars, and links to interactive forums and updated supporting resources

To learn how to participate in Model N's HCR workshops, contact grao(at)modeln(dot)com

Supporting Quote

"Fresh on the heels of the Deficit Reduction Act (DRA), health care reform legislation once again dramatically shifts the operational landscape for pharma manufacturers and creates strategic imperatives for revenue planning, commercial and government market strategy, and management of impacts to the bottom line," said Sujay Jadhav, General Manager, Life Sciences, at Model N. "Having successfully partnered with our customers through the DRA, we have leveraged our experience to begin planning in anticipation of the legislation to provide customers with immediate solutions to rapidly respond to the operational changes. We are committed to continue helping manufacturers, from CFOs and COOs to front-line operational managers, successfully plan for and implement further tactical and strategic changes to address the impacts of health care reform legislation."

Supporting Resources

Model N Health Care Reform Portal

The Bottom Line Revenue Management Blog and Forums

AMR Research Report: Turning Contract Information into Global Insight and Income (membership required)

About Model N
Model N is the leader in Revenue Management solutions, offering an integrated suite of applications for analytics, price management, contracts, compliance, rebates, fees, and chargebacks optimized for the industry practices of Life Science companies. Enabling the creation of a seamless, end-to-end process from price setting through settlements payment, Model N's uniquely integrated approach eliminates revenue leakage and delivers the visibility and controls needed to avoid the risks of non-compliance to government reporting regulations such as Sarbanes-Oxley and government pricing requirements. Customers include: Boston Scientific Corporation; Bristol-Myers Squibb Company; Medtronic, Inc.; Ortho-Clinical Diagnostics, a Johnson & Johnson company; and Pfizer, Inc. Model N is located in Redwood Shores, California. For additional information, visit

Model N is a mark of Model N, Inc. All other company names mentioned are the property of their respective owners and are mentioned for identification purposes only.


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Sean Cassidy
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