CONSIDERING that the state is authorized to enter into agreements with pharmaceutical manufacturers to collect additional rebates for Medicaid state members, provided these agreements are approved by the Centers for Medicare – Medicaid Services (CMS); and discounts are retrospective payments that are used to drive revenue growth without simply reducing the price indicated by a discount. The key element is that discounts are granted in contrast to rebates after the first payment of the goods. Incentive discounts are used to encourage purchases for a particular group of products. The incentive offered by the manufacturer or supplier means that the more you act with that partner during the agreement, the discount rates you get are better. This helps promote loyalty with certain trading partners and protects the supplier from the risk that its trading partners will discuss similar products with their competitors. Growth reduction contracts provide discounts when certain growth thresholds are reached. This means that your spending on this provider has increased by a certain volume, value or percentage above a reported underlying (the baseline of growth being determined from the previous year). The items you need to buy or the account numbers you need to buy to get discounts 12 to 15 in order to add a line for each range of values to be included in the discount calculation. In the Turnover field, select the option to accumulate debtor sales for the calculation of discounts. Options include invoice, week, month, year and debit period.
Of course, volume reduction agreements could be easier and earn a fixed amount at each target range instead of getting a rate per unit. They could also contain percentages, not unit rates. In volume discount agreements, discounts are granted when volume-based revenue targets have been met. This means that expenses have exceeded a certain volume of product units. Once you have entered basic information about a discount agreement, you must specify the inclusion rules that indicate what you need to buy to get the discount. The system applies purchases on the basis of a discount agreement based on one of the following options: To add specific comments or instructions for this discount agreement, enter your comments in the Note box of the Notice tab. Basic information on any agreement, z.B the supplier that provides the discount, the validity dates of the discount, etc. They determine the business unit subject to a discount agreement based on the main account number indicated by the G/L lag. A volume reduction agreement could be for example.B. Incentive goals: You can have a number assigned to the system of each discount agreement or enter your own number. If you assign a number, the last discount number is increased by 1 for the provider.
If this is the first discount contract for the supplier, the system assigns the number one. The person responsible for managing this discount agreement.