According to a 2018 report from the HDA (Healthcare Distribution Alliance) Research Foundation (titled ‘The Role of Reverse Distribution), reverse distribution generates more than $13 billion annually in product values. This represents a major opportunity for pharmacy owners and directors to recoup significant ROI from recalled and returned products.
To get their return credits, many pharmacies and hospitals rely on an outside vendor to handle their reverse pharmaceutical distribution process. However, many healthcare organizations spend hundreds of hours each year to track return status and finalize reconciliation to ensure compliance.
At Pharma Logistics our Rapid Credit Program is a quick way for our clients to get their return credits within 14 days from when their product arrives in our fulfillment center. The program allows them to stabilize cash flow and close out their reconciliation process much sooner so they can focus on their business and patients. It is available for both our Box and Ship or Onsite services.
What is Rapid Credit?
Benefit: An excellent way to boost cash flow quickly—with reduced reconciliation time— instead of waiting for 12 or more months, the industry standard.
Have you ever asked yourself, “I shipped out a $200 return—but where’s my check for it?”
Are you frustrated with your current reverse distributor? Does it feel like you’re shipping your products out to a black hole where your credits are stuck waiting for 12+ months? That’s because many vendors keep your products waiting in their warehouses anywhere from 9-18 months.
Drug manufacturers, third-party healthcare insurers and national programs such as Medicare/Medicaid all have their own timelines for payments, so independent pharmacies and smaller hospital pharmacies often find themselves needing a reliable source of cash in a hurry. Rapid credit dramatically decreases the time it takes for you to get credit for your returns, enabling you to quickly place funds back into your pharmacy or practice.
Accounting Work Adds Up:
- Too much accounting work? Are you doing it yourself? COST = TIME
- Is an accounting firm reconciling your books for you? COST = MONEY
Pharmacy directors and hospital operating managers often spend 20-25 hours a month reconciling their books on average. That’s 240-300 hours a year! This significant expenditure of time and labor often directly conflicts with the pharmacist’s #1 priority: providing the best healthcare possible to his or her patients. If you’re using an accounting firm, how much time are they spending reconciling everything for you?
Partnering with a trusted reverse distributor allows you to eliminate all this accounting labor and free up your staff to focus on providing quality healthcare. While many pharmacies already use a reverse-distribution vendor to process their expired medications and deliver their return credits, there may be an opportunity to improve your reconciliation turnaround, compliance and ROI. With a timely and efficient vendor, you can quickly close out your books for the fiscal calendar year, complete your write-offs, and not have to deal with any more accounting headaches. As soon as you get your check, you know you’re paid out and done.
- Operating managers and other hospital staff are freed up to focus on healthcare, while hospital pharmacists and directors don’t have to play accountant.
- Independent pharmacists and owners can quickly close out their books and know in advance exactly what their collection rate is.
To learn more about stabilizing your cash flow and reduce accounting time, download our free Rapid Credit Handbook.