Model N

Model N has spent more than twenty five years on commercialisation, revenue optimisation and compliance for pharmaceutical and medical technology companies. Specialising in those two industries rather than selling revenue management generally is what defines the product.

Pharmaceutical pricing is unlike pricing anywhere else, which is why a general product cannot serve it. The same drug is sold at different prices to government programmes, group purchasing organisations, hospitals and pharmacies under contracts with rebates, chargebacks and statutory formulas, and the calculations are legally mandated rather than commercially chosen.

Government pricing is where the compliance stakes become severe. Calculating what a manufacturer must report to a government programme is a formula with legal consequences for getting it wrong, and errors are recoverable years later with penalties attached, which makes this a regulatory system that happens to affect revenue.

Chargebacks are the operational volume problem underneath. A wholesaler buys at one price, sells to a hospital at a contracted lower price and claims the difference back, and a manufacturer processes enormous numbers of these claims, each of which must be validated against the right contract. No pricing is published.