How Intelligent Document Processing Can Improve Accuracy and Reduce Risk in Rebate Management

In the pharmaceutical manufacturing industry, the management of rebate contracts is a critical yet notoriously complex and time-consuming process. The sheer volume of contracts, inconsistent formats, and the lack of a streamlined method to analyze key information create significant challenges for scalable management of this process. Manually extracting and processing this data is laborious and prone to errors, potentially leading to missed opportunities and increased risks of inaccurate information.

As pharmaceutical companies grapple with these pain points, a promising solution is quickly gaining traction in the Artificial Intelligence sphere.

Enter Intelligent Document Processing (IDP), a game-changing capability that leverages AI to revolutionize the management of rebate contracts. IDP automates the extraction, classification, and analysis of key contractual data points from various document types, including complex rebate contracts and amendments.

By augmenting human capabilities, IDP significantly enhances the efficiency of this historically complex process – dramatically improving accuracy in contract metadata extraction while uncovering risks and opportunities at unprecedented speeds.

AI-Powered Accuracy and Risk Mitigation

The benefits of implementing IDP in rebate management are substantial. I know first-hand, having worked with one of the largest pharmaceutical companies to implement this game-changing capability, resulting in some fantastic outcomes which are frankly too great to ignore.

Unparalleled Accuracy: IDP can achieve an average data accuracy rate of 95%, far surpassing manual processing methods. This level of precision ensures that critical rebate contract details are captured correctly, reducing the likelihood of costly errors or missed contractual obligations.

Dramatic Speed Improvements: With IDP, the time required to source specific data points is reduced by an impressive 150%. This acceleration allows pharmaceutical companies to respond more quickly to market changes and make informed decisions based on up-to-date rebate contract information.

Efficient Risk Management: Consider the monumental task of de-risking 50,000 contracts. Using traditional manual methods, this process would be prohibitively time-consuming and resource-intensive. IDP can accomplish this task in a fraction of the time, allowing pharma companies to proactively identify and address potential risks across their entire contract landscape.

Resource Optimization: Currently, updating contract landscapes manually takes approximately 400 hours per quarter, typically involving 10 full-time employees. IDP significantly reduces this burden, freeing up valuable human resources to focus on strategic activities that drive business growth and competitive advantage.

Enhanced Risk Detection: Perhaps most importantly, IDP increases the likelihood of identifying commercial or contractual risks buried within contract data by 90%. This improved risk detection capability enables pharmaceutical companies to take preemptive action, potentially saving millions in averted losses and compliance issues.

IDP: An Indispensable Capability

The adoption of IDP in pharmaceutical rebate management represents a paradigm shift in how companies manage and process these critical documents. By harnessing the power of AI, these organizations can transform a traditionally cumbersome and error-prone process into a streamlined, accurate, and risk-mitigated operation.

As we look to the future, it’s clear that AI-driven solutions like IDP will become indispensable tools in the pharmaceutical industry. Companies that embrace this technology will gain a significant competitive advantage, benefiting from the ability to make data-driven decisions with confidence.

At EncompaaS, we harness Intelligent Document Processing to effortlessly analyze all regional, national and government rebate contracts — and automatically extract data with speed and accuracy.

This allows rebate contract managers to easily connect the dots between agreement and business performance so you can understand your rebate position in real-time, including correlations and rollups.

In an industry where precision and compliance are paramount, the adoption of Intelligent Document Processing for the management of rebate contracts is not just an opportunity – it’s a necessity.