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company confronts, conquers capacity crisis

Growth Brings Flood of Chargebacks, Challenges

“Working with DDN has been a truly wonderful experience. They have had extreme patience in holding my hand through the learning process and have worked endlessly to meet the goals.”

– Kristin Montalvo
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Upon acquiring several successful product lines from an established global company, a young U.S. generic and branded pharmaceutical manufacturer inherits more than 30 chargeback accounts, introducing a challenge well beyond its processing capacity

The new accounts are in addition to the chargeback claims regularly submitted to the company by other trading partners
More than 3,000 debit memos remained unprocessed over the course of three weeks
Automatic wholesaler deductions prevented the company from reviewing any chargeback claims for accuracy

DDN immediately set up all contracts in its system and established a process for capturing and recording the credits for the company’s internal accounts receivable

All EDI 844 and 849 setups were successful
A process was established to record and report the credit generated by processed chargebacks to the company’s internal accounts receivable
DDN leveraged its working wholesaler relationships on behalf of the company

Efficient DDN chargeback processing and seamless integration erased the backlog, allowing the company to focus on its internal business functions

Instead of scrambling to catch and keep up, the company has time to analyze the contracts it has inherited in preparation for new contract negotiations with the group purchasing organizations
DDN now reviews chargebacks and can address potential discrepancies before credits are deducted by wholesalers
Better chargeback data leads to greater accuracy for the company’s accounts receivable and reporting obligations, including Medicare/Medicaid