Cardinal Health Leverages Blockchain to Streamline Pharmaceutical Supply Chain
What you should know:
– Cardinal Health and Chronic announced a partnership to leverage a new blockchain-based solution on the MediLedger Network to streamline operations throughout the pharmaceutical supply chain and enable a reliable and frictionless experience for pharmacies across the country. The new blockchain solution will allow Cardinal Health to optimize the complex pharmaceutical chargeback process and create greater connectivity for its suppliers and customers.
– Chronicled, the administrator of the MediLedger network, provides Cardinal Health and industry partners with a shared decentralized infrastructure with real-time visibility to eliminate disputes and improve pricing accuracy. The blockchain-based solution will ensure the accuracy and integrity of chargebacks submitted in Cardinal Health’s pharmaceutical supply chain.
Impact of chargeback errors (pricing)
Chargeback (pricing) errors can occur for many reasons, but the result is always manual processing, duplicate efforts, and two-way communication between business partners to resolve them. Research studies have also shown an estimated $ 4 billion in lost revenue for vendors that can be attributed to chargeback disputes. Suppliers, wholesalers, and GPOs are constantly looking for ways to reduce errors and streamline this process.
Benefits of partnership
The Contracts and Chargebacks solution on the MediLedger network will help Cardinal Health provide its supplier partners and GPOs a single source of truth for GPO membership, customer identification data (eg HIN, DEA, 340B) and contract pricing data that always remains fully aligned between network trading partners. The network itself then uses this aligned benchmark data to apply the precision of the chargeback.
“Blockchain technology and increased collaboration in the industry are key to increasing efficiency, reducing costly errors and dramatically improving the chargeback process,” said Craig Cowman, executive vice president of global sourcing for Cardinal Health . Greater connectivity with our supplier partners is always our focus and we are excited to deploy this new solution to deliver better results across our supply chain network.