2023 10 19 Haris Kamal of Chronicled

Owned by Alicia Noel
Last updated: Oct 19, 2023Version comment
3 min read

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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

Upcoming events

  • Nov. 2 - eBook launch

Announcements

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