Through a combination of human resources and advanced proprietary technologies Contract Management Strategies has the answer to Identifying and recovering your companies expense dollars lost to vendor overcharges.
Overpayments occur at virtually every facility. Most companies do not have the time or the resources to mount the detailed investigation required to recover such overpayments.
Common Overpayment Types
- Unrealized credit for rebates or returned goods
- Duplicate or misdirected payments
- Product pricing errors
- Sales Tax overpayments
- Freight charges paid in error
- Missed discounts
- Trade-in allowances
Contract Management Strategies can perform an Accounts Payable Recovery Audit for your organization with no up-front cost that on average will help your organization recover thousands of erroneous charges and overpayments. Along with a complete and thorough audit, CMS will provide you with clear and precise documentation to substantiate and support all overpayment claims.
With no risk and no up-front costs, you can't afford not to recover lost funds.
Sales Tax Consulting
Understanding and accurately reporting state and local tax can be can be a confusing and frustrating process. It can also be a very expensive process. Whether that expense is the result of an unexpected audit assessment or dollars lost failing to take advantage of legitimate deductions and exemptions it is an expense that no healthcare facility can afford.
Contract Management Strategies provides a comprehensive menu of state and local tax services. Our services can help eliminate the confusion, simplify your reporting process and provide the tools necessary to better manage state and local taxes. We can help turn your state and local tax obligation from an unpleasant surprise to a budgeted amount.
We provide audit defense work for clients undergoing state sales and use tax audits ensuring they pay only what is due under statute and that the audit also reflects overpayments made during the period under audit. Included in our audit defense work is a review of any state proposed statistical sampling tests to confirm that it accurately reflects our client's transactions.
Tax Overpayments to Vendors
We review vendor invoices to recover tax overpayments made to suppliers. Our in depth review allows us to recover taxes overpaid as the result of state law changes, court decisions, state policy and administrative changes.
Custom Tax Training
We believe knowledge and training are two keys to minimizing both sales tax liability and overpayments. To this end CMS provides several services for our clients. We review the client's current sales and use tax-reporting procedures and make recommendations that will result in a less complex and more accurate reporting process. We provide customized, on-site sales and use tax-training sessions for our clients. Because these training sessions can be targeted to specific transactions or specific departments this service is a client favorite.
Item Master File Review
CMS believes that our clients should have the ability and the confidence to be proactive with their suppliers in the area of sales and use tax. To assist our clients with this we will review their item master to verify that the tax codes reflect current state tax laws and regulations.
Finally CMS provides our clients with consistent and personal contact for sales and use tax questions that occur in the normal course of doing business. Whether it is question regarding a vendor invoice or how to minimize tax on a new capital purchase we can help.
Diane Buaas, Vice President of State and Local tax, heads our tax department. She has ten years experience as Director of State and Local Tax for PRG. Prior to that she spent 14 years as a Business Tax Auditor for the California State Board of Equalization.
Pricing errors occur at every healthcare organization. Contract Management Strategies proprietary software allows us to identify those errors efficiently and present them to the suppliers that made the errors in a clear concise manner.
The CMS process matches the prices paid by the client with the local or national negotiated contracts for products purchased and verifies that the proper tier prices (if applicable) were applied.
Pricing recoveries at the average healthcare organization run in the $200 to $400 per licensed bed but could be significantly higher depending on the product and supplier mix.
Retrieve Your Images
Many of the Contract Management Strategies clients utilize CMS for providing imaging solutions to their document storage problems. CMS provides full service imaging with timely return of the electronic data and document destruction.
Though there are many applications for imaging in healthcare, the most common are invoice storage and contract management and retrieval.
Pharmacy Pricing Audit
How Much Are Supplier and Distributor Pricing Errors Costing Your Hospital?
The average invoice error rate in the pharmacy is approximately .75 percent of total pharmaceutical purchases.
Even with all the proper safeguards in place to make sure payments are made correctly, some invoices still get paid at the incorrect price. One Group Purchasing Organization has stated that 35 percent of all health care purchase orders have errors that result in overpayments.
Utilizing Contract Management Strategies’ AuditRX™ our drug purchases audit software will identify pricing errors that lead directly to recoveries for our pharmacy clients.
What Determines the Price You Pay?
- GPO pricing agreements plus or minus wholesalers markups
- Manufacturing pricing agreements
- Contract timing vs. signing agreements
- Local agreements
- Tiered contract pricing
- Packaging changes
- Market share pricing
The CMS Process for Recovering Overpayments
- We obtain your pharmacy purchases data
- Determine correct pricing based on your contracts
- Identify overpayments that have occurred
- Review potential overcharges with you
- Confirm, validate and recover the overpayments from vendor
- Provide a report detailing the overpayments, causes and recommend solutions to prevent their reoccurrence
Our fees are based on a percentage of client’s actual savings. A client risks nothing and gains a wealth of industry talent and experience.
Contact Us Today
Contract Management Strategies’ experience in recovering lost dollars from disbursement to procurement recovery audits is unmatched in the industry.