HDMA - Issues in Distribution - Contract Administration/Chargebacks

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Contract Administration/Chargebacks

A chargeback can be defined as healthcare distributor debit memos to manufacturers. They are used when a vendor establishes a special price for a specific item during a specific period of time for qualified institutions, and the item is supplied out of the healthcare distributor’s regular inventory. Since the healthcare distributor purchases the item at the regular price, chargebacks provide a mechanism by which the vendor can reimburse the healthcare distributor for the different between the healthcare distributor’s current product cost at invoice date or sale to the hospital and the special or contract price.

HDMA’s Business Technology Committee currently is working on developing new EDI guidelines for the chargeback re-submission process.

Committees/Taskforce
Business Technology Committee

Publications
2007-2008 HDMA Factbook
Order the 2007-2008 HDMA Factbook for analyses, trends and easy-to-use demographic and benchmarking data on contracts and chargebacks. The Factbook includes information on manufacturers' contracts profile, distributors' chargeback profile and the total administration costs of contracts and chargebacks.

Streamlining the Contract Administration Process

Contact
John Howells
Senior Director, Industry Relations
703-885-0277
jhowells@hdmanet.org