MedContrax signs manufacturer agreement with Procter & Gamble Pharmaceuticals
Under the terms of the agreement, Procter &Gamble Pharmaceuticals will use MedContrax's Contract Processing Network (CPN) to expand its production distribution and enable greater efficiency in the contracting process.
The MedContrax CPN will act as a neutral third-party interface between Procter & Gamble Pharmaceuticals, pharmaceutical distributors and group purchasing organizations (GPOs). The agreement will enable Procter & Gamble, distributors and GPO's to participate in the MedContrax network to utilize Web-based technologies and securely create and document valid contract pricing for the end users, via non-repudiable purchasing agreements online.
"Procter & Gamble has been actively involved with the development of the CPN through our advisory board and as one of our alpha/beta testing clients," said William Magruder, Vice President of MedContrax's Product Development. "They have contributed to the excellence of the CPN and have experienced the benefit of being part of the network. The use of MedContrax's CPN solution to manage the contract process, particularly the external data communications with their business partners, is expected to significantly reduce Procter & Gamble's contract development time and administrative costs, help determine GPO membership eligibility and automate distributor notifications."
"The current contracting process is extremely complex, due to the divergence of legacy systems and data synchronization between trading partners, which has been problematic for decades, resulting in time spent unnecessarily on administrative tasks," said Ron Brandt, Manager of the Healthcare Contract Administration with Procter & Gamble. "By using MedContrax's CPN, we can transcend these problems and benefit from a synchronized contract process. This will provide us cost efficiencies, allow us to innovate new contracting strategies and help us develop stronger relationships with our business partners."