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Predictive Acquisition Cost applies the power of predictive analytics to drug pricing. Independent validation by key industry stakeholders confirms that PAC consistently tracks actual drug acquisition cost more effectively than price benchmarks like AWP.
Comprehensiveness — all drugs are covered
Timeliness — reflects price movement in a timely way
Accessibility — available to all stakeholders, easy to access
Immune to Manipulation — no single input overly influences output
Accuracy — reflects ground truth
Transparency — understand how the drug price is established
The PAC methodology helps stakeholder operate in a complex environment by offering turn-key solutions for solving common drug pricing problems.
Establishes a pricing range that is closely aligned to a drug’s acquisition cost to help determine performance of pricing contracts, control costs and support reimbursement rates.
Utilize a fair and balanced method to justify your pricing strategies, improve network satisfaction and reduce appeals.
Quickly identify reimbursement outliers that warrant price adjustment to improve bottom-line performance, improve negotiations.
Rely on a more stable starting point to determine usual and customary (U&C) to set cash pricing while considering price elasticity, profitability and sustained insured revenue.
Optimize your MAC list, meet regulatory requirements for transparency and identify drug groups where pricing is outside an acceptable range to help justify pricing strategies.
Take advantage of historical data across generic drug categories to price drugs, understand historical pharmacy acquisition costs and analyze historical trends to forecast future trends.
Borrowing a concept from econometrics called the Gini coefficient you can gain deep insights into price and price movement by looking at how concentrated versus widely available a given drug is across manufacturers.
Evaluate changes in the Gini coefficient to understand changes in drug availability in specific manufacturers in a drug group and anticipate or explain pricing movement.
Identify drugs changing from single source to multi-source or vice-versa to anticipate product demand and impacts on products changing from brand to generic products.
