In-House Costs for Existing Systems
For an existing in-house system, calculate the total cost of ownership for:
- Researching current regulations and making system updates
- Pulling transaction data from multiple sources
- Preparing transaction data for import into the reporting system
- Validating HCP information
- Remediating conflicting data from multiple data sources
- Generating reports to meet complex federal, state and international transparency reporting requirements
- Analyzing data for ongoing compliance monitoring
- Keeping the system up to date as regulations change
Typically, companies find that they are spending weeks, if not months, of resources on the above tasks, particularly if a high percentage of those tasks are completed manually. An automated end-to-end process can increase staff productivity and operational efficiency.
Custom Development
For development of an in-house system, include all applicable items listed above PLUS:
- Development costs for a custom system, including time spent on defining requirements, coding, testing and launch
- Annual maintenance costs for system updates and enhancements
- Costs for evaluating and performing regular technology updates and upgrades
- Infrastructure and support costs for hosting the system on premises
- Regulatory research costs to support jurisdictional reporting updates
- Additional costs for “point solutions” from third-party vendors
Other Considerations
Think beyond operating expenses. Consider the less obvious costs of:
- Non-compliance
- Financial penalties
- Brand impact/loss of goodwill
- Wasted resource allocation — talent and resources that could be used more effectively on analysis and other activities that drive greater value for your organization
- Impact on business agility
- Not all solutions are flexible or scalable
- Slow deployment of new features
A cloud-based compliance system provides centralized access to global information, reduced risk through systematized processes, near real-time compliance monitoring and on-demand infrastructure scaling. To learn more about how MediSpend solutions can help your organization, please contact us or call (888) 731-7322 x8300.
Seth Houston
Chief Commercial Officer
April 29, 2020