Drug database provider Elsevier/Gold Standard, US, has announced an agreement with Glass Box Analytics to become the exclusive distributor of a new price type, Predictive Acquisition Cost (PAC). Glass Box Analytics represents a strategic joint venture between Pathria Analytics LLC and ChainDrugStore.net. Together they bring advanced predictive analytics techniques along with deep industry domain expertise to provide solutions that address the most challenging issues facing businesses on a day to day basis.
Glass Box Analytics developed PAC to address the industry need for a pricing standard that more closely tracks true drug acquisition cost. PAC employs predictive analytics techniques to estimate acquisition cost considering various factors, including industry MAC benchmarks, published price lists, existing price benchmarks, drug dispensation metrics, supply-demands measures, and survey-based acquisition costs.
AWP has long been the standard price type used throughout the industry to set contract terms and adjudicate claims. In recent years, however, industry leaders have expressed concerns about the accuracy and reliability of AWP and have called for a price type that is transparent, accessible, comprehensive, timely, and immune to manipulation.
PAC will be included in the Gold Standard Drug Database product and price file and as a stand-alone module. In addition to PAC, which is the estimate of the acquisition cost for each drug group, range will be provided to indicate the associated level of accuracy. A PAC retail value will also be generated for each drug group, which can be used as a replacement for AWP in existing ‘generic effective rate’ based contract vehicles.
Glass Box Analytics and Elsevier/Gold Standard will hold complimentary webinars about PAC on March 8, 2012 and March 22, 2012.
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