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2023 10 19 Haris Kamal of Chronicled

2023 10 19 Haris Kamal of Chronicled

Oct 19, 2023

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Details

Date: Thursday, October 19, 2023

Time: 10:30pm IST / 6:00pm CET / 5:00pm GMT / 12:00pm EST / 9:00am PST

Meeting link: https://zoom.us/my/hyperledger.community.backup?pwd=dkJKdHRlc3dNZEdKR1JYdW40R2pDUT09

Zoom Meeting ID: 622 333 6701          Passcode: 475869

Meeting Recording on YouTube

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Presentation

Haris Kamal of Chronicled: Financial transactions in life sciences: How blockchain revolutionizes the chargebacks and claims ecosystem

Chronicled started by looking for

  • Haris joined MediLedger because he saw the business case, he saw they were using blockchain in a way that made sense

  • In the US, more than $1 trillion annually spent on healthcare administration

  • There is a misalignment of data in supply chains

    • Data has to align for transactions to take place.

    • Data misalignment creates errors

  • Chargebacks managed by EDI (electronic data interchange)

    • Used since 1970s

    • Not real time

    • Can take days-weeks for manual reconciliation

    • MediLedger moves this to real time

  • MediLedger uses automation, standardized data, for a shared 'source of truth' - for pricing, drugs, etc.

    • Developed through collaboration

    • Built by-the-industry, for-the-industry

      • Wholesalers: McKessen, Cardinal Health, Amerisource Bergen - collectively control 90% of supply

      • Group purchasing organization, which facilitates lower prices for healthcare purchases

      • Manufacturers: Pfizer, Genentech, Zydus, Lily,  Horizon, Gilead, Bayer, Novartis, Merck, AstraZenica, Amgen, others

      • Integrations: SAP, Model N, Restful APIs

      • Supported Data Sources: Premier, Vizient, Intalere

      • Industry participants raised the issue of chargebacks as being one of their biggest challenge (pain-point)

      • Effort for growing the network is focused on manufacturers

  • Chargebacks- similar to consumer rebates that required mailing in a receipt and coupon

    • $90B in annual chargeback transactions

      • Involved Wholesalers, Group Buying Organizations (GPOs) & Buying Groups, Manufacturers

    • 4% processing errors, due to manual processing

    • >10 days processing time

    • $4-10B in annual revenue leakage

  • Expectations:

    • Eliminate manual effort to manage data - estimated $500M cost annually

    • Eliminate disputes - est. 4% chargeback claims, 100k disputes daily

    • Reduce revenue loss - $10B annual revenue leakage

      • No more aged write-offs

      • No more threshold write-offs

      • No more unapproved distributor deductions

      • No more ineligible customers for 340b programs

  • Blockchain

    • Permission-based

    • Uses Substrate, they expect info to be exchanged across different blockchains

    • Looking for:

      • security,

      • rule-enforcement - no need for a person to validate claims,

      • trust - data and business rules can't be changed unilaterally by anyone

  • Current state:

    • Manufacturers use a roster of who can buy off which contract, at which price

    • GPO is source of truth of who is on membership list

    • Everyone has identifier numbers, must be reviewed (price-of-trade determination)

    • All info exchanges via EDI and emails

    • Pricing changes, membership changes, other data changes - cause disputes

    • Chargebacks also submitted by EDI message

      • If all data matches

  • Mediledger modules:

    • Roster Management

    • Contract communication

      • Moves info transfer from EDI to peer-to-peer info

      • Info immediately made available to wholesaler

    • Claim adjudication

  • Network nodes exist for HIN, DEA, 340B orgs (different types of organizations)

    • Network does data validation

      • Issues approval if data is correct.

      • Does not allow submission if data is missing or incorrect, sends message to customers/party entering data

  • Contract info communication is done through peer-to-peer network

  • MediLedger supports Contracting and Finance teams coming together

    • Alignment w/trading partners

      • Share accurate info in real-time

        • Anchored around distributors

      • Verify eligibility w/external data points

      • Map identities between trading partners

    • Automate transactions

      • Automatically executes inter-company busines rules

      • Ensures reception of valid data

      • Automate resubmissions

    • Increase profitability

    • Reduce float

    • Increase rate of return

    • Customers save $150M on average after deploying Mediledger

  • "Right application of blockchain to the right business case"

  • Working group still meets quarterly

    • Took years to create a unified protocol

  • Network operates on a SAAS model

    • Participants pay an annual fee

  • Chronicled recognizes that multiple other industries have challenges/pain-points around chargebacks and this platform could be adapted

    • The industry they are considering moving into next is semiconductors.

 

Attendees

@Jeff Pribich 

@Alicia Noel 

@Tomaz Sedej 
Haris Kama

Juli Cooper

@Ned Thompson, MBA 

@David Odie 

Edwin O

Alan Stoll

Morgan Reece