Episode
20

340B TPA Maintenance: What Your Covered-Entity Should Know

Join us as Matthew Krah walks through best practices for maintaining a 340B Third-Party Administrator (TPA) program. We cover how TPAs help ensure compliance, manage claims, and streamline contract-pharmacy networks - plus key red flags to watch out for. If you run or support a 340B covered entity, this episode gives you practical insights to avoid pitfalls and stay audit-ready.

Our Guest on This Episode

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Matthew Krah

Matthew Krah is a 340B expert with nearly two decades of experience in clinical and business settings. He serves as Senior Solutions Engagement Director for Verity Solutions, a Seattle-based 340B TPA. Prior to joining Verity, he worked at a major academic health system in central Pennsylvania. As 340B Program Manager, he gained experience in mixed-use, retail, and specialty contract pharmacy and revenue cycle management, making him well suited to serve as a 340B subject matter expert for Verity clients. He holds a Master of Science in Healthcare Management from King’s College in Wilkes-Barre.

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Full Episode Transcript

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In this episode of 340 Banter, we're joined by Matthew Kraw,

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Senior Solutions Engagement Director

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at Verity Solutions, a third-party administrator in the 340B program.

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Today, we delve into TPA housekeeping and reviewing the different elements that

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covered entities need to perform regular maintenance and upkeep on to ensure

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an optimized and compliant 340B program.

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Thank you.

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Let's talk TPA housekeeping and maintenance. I know that many covered entities

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have to work with more than one TPA at a time,

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and it can be really challenging to make sure that the TPAs continue to work

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properly or that the data continues to interface properly.

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So let's start off there and kind of talk about your experience dealing with

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multiple TPAs and your experience and trying to help covered entities to maintain

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a compliant and optimized program. Yeah, I came from a health center.

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We had five TPAs. So it's a lot of data coming in.

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And I'm coming in from a retail background and didn't know what I was looking at.

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So it was a big learning curve trying to interpret all the data. Yeah.

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One of the big things is the data is very different depending on what TPA you're looking at.

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That's a full-time job to manage five TPAs. Yeah.

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Luckily, we had a full-time person. We were fortunate because of the size of

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our health center, but a lot of health centers don't have that.

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And it can be a lot, even before you start talking about auditing,

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just managing the data and getting it compiled for the finance team into one

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manageable file is challenging every month.

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And that's from a health center perspective. From a hospital perspective,

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you toss in having to manage, different crosswalks and package sizes

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and billing units and all of that.

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GPO provisions and all of that. Yeah, that's a lot.

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Yeah. And I think one of the challenging points from a vendor perspective is

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when customers are on the set it and forget it type of mentality. Right.

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So 340B runs itself, doesn't it? It does. There's no hiccups ever.

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Nothing ever changes. It's very status quo.

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But, what we've done, the approach we've taken is we do a business

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review for all of our clients.

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So if you participate in it, awesome, right? We want you to participate.

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If you don't participate in it, we're still doing that business review and we're

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storing it in our CRM system.

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Is that like when they come on board or quarterly or monthly?

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Bi-weekly. Oh, wow. Okay. Yeah.

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And it's typical, like, accumulations, top wax spin,

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data feed errors that we see.

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And it's really nice to have. So, like, in your position, when you take over

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a new position at a health center, right, you could go to your,

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if you were using Verity, come to us and say, hey,

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what have been the last six months of business reviews looked like?

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And at least that helps bring you up to speed if nobody else was actually paying attention.

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So set it and forget it, I think, is one of the biggest challenges.

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And other challenges, some of our legacy customers might be using an old data

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spec, right? So if you wrote a data spec in 2016.

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Well, a lot of things have changed back then, and we've got a lot of optional

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fields in our data spec, so you're not getting the full advantage of all of

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our audit report fields if you don't have everything in there.

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I imagine in that time, even the EMR fields would change as well,

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the medical record fields.

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I've seen people that didn't fix their EMR feeds, and they have new sites that

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aren't feeding into their PPA.

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New locations or new encounter types that aren't coming over in the files

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if it's been almost 10 years since they set up the feed with the data spec. Yep.

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And I think there's a different philosophy on those locations, right?

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Like, so some of them, some of our customers just do their own filtering before

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the data even comes to Verity.

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And then others are using our location filtering.

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Now, what's kind of nice if you're using our location filtering,

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at least you can see there's 200 locations that aren't

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crosswalked and are showing as an active. So that might be like a little trigger

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of like, okay, maybe we should do something.

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But more challenging if they're filtering ahead of time, but they don't necessarily

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know that they're filtering new ones out.

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And at least with health centers, they often don't have...

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If they have IT departments, they're not very expansive. So it's hard for them

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to identify those challenges in their data feeds.

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We actually had a situation recently where one of the EMRs was filtering all

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Medicaid encounters for all of the patients. So if you were registered as Medicaid,

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they weren't even sending us those encounters.

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And the problem with that is, was Medicaid actually used at the pharmacy at

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point of sale, right? So we don't need to be actually carving that patient out.

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So again, without actually looking into the why are we filtering

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this? Why are we not sending this?

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You could really be losing out on a lot of opportunity. And,

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I think it was on Halloween we got that nice surprise from the government

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that medical claims are now included with the rebate.

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And that's referred to me rebate, yeah. Well, guess what we had to do?

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We had to update our data spec in Verity to be able to digest that.

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And if you're not looking at your data spec and asking your TPA what changes

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are coming, should I reevaluate this?

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We're not going to be able to help you submit medical claims if we don't have

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that HICS-PICS and unit of measure data.

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And even that, I think, is challenging for some covered entities,

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just the elements for the 340B rebate piece, looking at

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the HCPCS and unit of measure are probably relatively easy to pull through.

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However, the claim line number is not something that necessarily is accessible or sendable,

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but it is a field or a value that needs to be present in order for the claim

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to pass that front-end validation.

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So being able to then speak to your vendor to say, okay, if this isn't something

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that we have, how can we work to have it populate? You know,

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it needs to have a digit and needs to have an integer in that field.

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And as long as you can trace back that claim, because that's what that claim

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line number would indicate, as long as you can trace it back or it's identifiable,

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you can kind of work through that.

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But being able to work with your TPAs, plural, to make sure that you've got

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that information both going in and coming out is important. I didn't like working

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with three when I had to, so I couldn't imagine working with five.

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I quickly downsized as quickly as possible, and we still have three at my health center.

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So it's challenging, but sometimes you don't have a choice or you come in and

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there's some of those older legacy TPAs that you struggle to get rid of.

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But yeah, it creates challenges and it's really important that you think about that.

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And when you're staffing your 340B program is that you have to be able to manage

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all that data coming in and it can create some additional staff.

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Workforce. I think another great example we have of

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data being filtered out on the hospital side is billing for waste. Yes.

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And that's important with the rebate model too. It's going to be big for the

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rebate model. It's going to be big for 340B and it's huge for reimbursement.

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So it's going to be really like a three-way hit if you're not getting that. Yeah.

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And I often say that we can bring the drug in at 340B all day long,

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but if you're not getting paid for it what good is it? Yeah.

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And we've, we had a scenario where one of our customers

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was buying a ton of ramecade on whack

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like 90 of it and it was small

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doses it was a pediatric unit and what was happening

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was there's just a lot of waste so we worked with them did like nine-month reconciliation

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got a data upload of all those claims and then like their 340b went

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through the roof because they had all that backing of the waste, so waste

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is really something that i would also say like look into it what's your waste

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policy? Work with your revenue cycle director.

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Are you actually billing for waste? Are you putting the right modifiers on it?

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So there's a lot beyond just the getting the drug in at the best price.

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We really need to make sure we're getting paid for it as well.

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And I mean, along with that is, some people will view that as,

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oh, well, that's us working the system or getting away with something, but it's not.

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You just have to make sure you have the accountable or excuse me,

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the records to be able to demonstrate or back up the 340B behind it.

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It's definitely within the rule set my background

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prior to to 340B, I did

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a few years in the revenue cycle and you know it's definitely

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permitted by cms using that ud modifier there's policies out there that are

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publicly available pretty easy to find with a google search look at your top

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payers you know if you're an area that's dominated by a blue you know look up

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that local blue and what's their policy on waste billing and most likely it's

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going to follow what cms says put your medical jws yeah.

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Or JW, thank you for correcting me on there. He was like, that's Medicaid.

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That's wrong. Yeah, I got my modifiers mixed up.

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Yeah, I think that's really important because sometimes the waste is not unavoidable

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because of dosages. So you might as well be doing that documentation.

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But I think that that really brings up a good point that 340B is not a pharmacy program solely.

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It requires working together with your finance team, your billing team,

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your IT and EMR teams, that you really have to get everyone together so you

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can manage that program completely.

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And that goes for the TPA as well, because you have these data feeds.

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And maybe it's a nursing manager that's making sure that those waste codes are

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being put in there correctly. Yeah, I'm a big fan of a well-staffed steering

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committee for the 340B program.

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In one area you missed, too, I think government affairs. I think that's really

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important to have at the table. Like, let's be proactive with this stuff and

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let's not wait till there's a crisis.

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And finance can help with that. Revenue cycle can help with that.

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So I think it's definitely a multidisciplinary approach for a really strong,

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successful 340B IT as well.

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You know, have an IT at the table. So thinking about the entities that may be

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struggling or facing challenges with,

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managing their TPAs or they're not sure if they're making, you know,

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they're keeping up on all the data elements. I'm wondering if we can kind of

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go through two lists, more or less, for people to be able to use as takeaways from this.

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One, I'm thinking, is what elements should they be looking at with their TPAs on a regular basis?

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And then when they're selecting a TPA, what questions should they be asking?

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It's tough when you don't know what you don't know. So what things should you

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go in to that negotiation or conversation, hoping to get out in terms of just

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understanding the program to see if it fits your own covered entity.

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So, I mean, I'll start with, you know, one easy thing that I think could be,

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you know, a starting point of where to dig in a little deeper to try to find

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if there's issues with your program is looking at your accumulator and sorting

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by the negatives and anything that's excessively positive.

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Because if we've got excessive positives, that to me says we've got a multiplier

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issue or we don't have a price in our catalog.

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So every order is getting split to GPO or getting split to WAC and not actually

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being purchased on 340B.

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If it's excessively negative, what happened there, right?

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I had a situation once where a pharmacy tech with very good intentions in one

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of our own pharmacies would go into Cardinal and buy a generic equivalent anytime

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something was out of stock.

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Awesome. I love that you're buying the best price.

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But we don't have the accumulations to back that, right? So you gotta make sure

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that you're focusing on that.

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And then when it comes time for shopping for a vendor

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I would say rely on your peer groups, right?

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Don't just take the sales reps word for it.

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Everyone's gonna say that they're the best, but can they actually prove it?

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So use those conferences again, networking, ask for references from who you're evaluating.

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And I think that all TPAs can build a 340B bucket, right?

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But where areas that I think are distinguishable is the amount of support that

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you're going to get from that TPA because after the contract signed,

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what's the quality of implementation like?

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What is the quality of the support that you're going to get after implementation?

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And a lot of that is publicly tracked by external firms outside of the TPAs.

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So class research is one of them. You can go in, you can look at all the TPAs

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and how they stack up against the competition.

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Cybersecurity is another huge one. You know, I myself got like a $30 check from

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a breach that I was involved with from a hospital back in Pennsylvania.

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And that bought me about a muffin and a Starbucks coffee.

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But I mean, it is a real threat. And, you know, you want to know what is your

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TPA doing to keep your data safe?

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Because the last thing you want to do is be on the front page of a local newspaper

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that there was a data breach from your health center or hospital.

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What kinds of things, like how would they, how would a covered entity know that

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their TPA has proper cybersecurity measures in place? So there is certifications

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out there that are available.

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You know, SOC 2 is one that a lot use. That's more of a financial type of cybersecurity certification.

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And then there's HITRUST, which is the more of the healthcare sector type of cybersecurity.

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And Verity has HITRUST certification. I will say that that is one of the more

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challenging and more expensive certifications to get. So, you know,

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you want to know what kind of security measures are in place.

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And that requires us to have all different kinds of policies and procedures.

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Notifying our customers of any breaches.

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They test our staff regularly. We get phishing attempts all the time and we

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have to submit the phishing report and, you know, get a pass or fail and they

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actually track those rates.

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So, you know, getting to know that and then know what kind of cybersecurity

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coverage that they have, right?

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You know, someone can say, oh, we'll give you unlimited cybersecurity insurance.

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But if you don't have the funds to back it, it's really only as valuable as

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the ink that the paper's printed on.

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So, you know, I think that's a pretty good, what's your service like,

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what's your reputation like, and what's your cybersecurity measures?

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And one of the things I've done and I've talked to other covered entities about

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is you mentioned references,

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but it's also valuable if you find references that

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aren't given by the TPA as well and find them through maybe Nautopod for the

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health centers or the 340B health exchange where you can talk to other people

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and covered entities and get a reference that may not be provided from the vendor

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because you'll get more of a,

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possibly more of a, an honest review of the program.

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And I think something I did that's really simple, doesn't require any Excel

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skills because I have very minimal Excel skills.

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When I was looking through the reports, I would do a simple look each month

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at the tracking of the number of claims captured,

00:15:05.190 --> 00:15:09.110

Because I could easily see if there were anomalies and we would have a month

00:15:09.110 --> 00:15:13.670

where we drop 500 claims at a certain pharmacy and I'd know,

00:15:13.930 --> 00:15:14.870

okay, there's a problem here.

00:15:14.990 --> 00:15:19.530

I don't know what it is, but it clued me in so I could ask the questions.

00:15:19.850 --> 00:15:26.070

And that open communication with the vendor partner is really important.

00:15:26.070 --> 00:15:30.210

You may not need to know what the problem is or how to fix it,

00:15:30.290 --> 00:15:34.710

but knowing who to call and start those conversations. Ghostbusters every time.

00:15:35.190 --> 00:15:41.590

So I agree. And I think another easy way to identify where there may be a problem,

00:15:41.730 --> 00:15:46.630

even if you don't know what's causing it, is periodically pulling your electronic

00:15:46.630 --> 00:15:51.030

prescription report from your medical record to see how many prescriptions are

00:15:51.030 --> 00:15:52.370

going out to each pharmacy.

00:15:52.930 --> 00:15:57.070

And while that won't factor in if you carve out Medicaid or you've got manufacturer

00:15:57.070 --> 00:16:02.710

restrictions there, it will provide you with more or less a comparator for month over month.

00:16:02.850 --> 00:16:07.290

We've been sending about this many prescriptions to this pharmacy and we've

00:16:07.290 --> 00:16:08.670

had about this many qualify.

00:16:08.670 --> 00:16:12.670

And if there's a change that's not reflected in the other number,

00:16:13.270 --> 00:16:16.510

then being able to say, OK, is there something wrong with,

00:16:16.590 --> 00:16:19.390

are we are we qualifying based on prescriber NPI?

00:16:19.790 --> 00:16:23.650

Do we need to update the provider list? Are we qualifying based on location

00:16:23.650 --> 00:16:26.030

ID? Do we need to update any locations?

00:16:26.810 --> 00:16:31.990

Kind of using that as a starting place to be able to dig more for a root cause analysis.

00:16:32.370 --> 00:16:35.330

And most TPAs have a feeds monitor of some sort, right?

00:16:35.450 --> 00:16:38.970

So that's one of my go to's as well. Like if I've got a customer that sent us

00:16:38.970 --> 00:16:44.110

20,000 line items overnight and 900 processed, something's wrong there,

00:16:44.250 --> 00:16:45.270

right? We need to fix that.

00:16:45.510 --> 00:16:49.290

So I would also recommend looking at that, too, and see how many of your files

00:16:49.290 --> 00:16:51.890

are actually processing versus rejecting or duplicating.

00:16:52.870 --> 00:16:55.630

Yeah. Well, thanks so much, Matt. It's been really helpful to go through this.

00:16:55.830 --> 00:16:57.930

It's been fun. Thanks for having me. Yeah, it's been great.

"One of the biggest challenges is when TPAs filter locations ahead of time. If you're not aware of it, you might be unintentionally excluding encounter types, and losing out on 340B opportunities."

Matthew Krah

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00:00:00.017 --> 00:00:03.177

In this episode of 340 Banter, we're joined by Matthew Kraw,

00:00:03.597 --> 00:00:05.517

Senior Solutions Engagement Director

00:00:05.517 --> 00:00:09.457

at Verity Solutions, a third-party administrator in the 340B program.

00:00:09.797 --> 00:00:14.137

Today, we delve into TPA housekeeping and reviewing the different elements that

00:00:14.137 --> 00:00:18.117

covered entities need to perform regular maintenance and upkeep on to ensure

00:00:18.117 --> 00:00:21.117

an optimized and compliant 340B program.

00:00:30.017 --> 00:00:30.537

Thank you.

00:00:41.269 --> 00:00:45.009

Let's talk TPA housekeeping and maintenance. I know that many covered entities

00:00:45.009 --> 00:00:48.369

have to work with more than one TPA at a time,

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and it can be really challenging to make sure that the TPAs continue to work

00:00:54.069 --> 00:00:57.249

properly or that the data continues to interface properly.

00:00:57.509 --> 00:01:02.729

So let's start off there and kind of talk about your experience dealing with

00:01:02.729 --> 00:01:07.629

multiple TPAs and your experience and trying to help covered entities to maintain

00:01:07.629 --> 00:01:12.149

a compliant and optimized program. Yeah, I came from a health center.

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We had five TPAs. So it's a lot of data coming in.

00:01:16.829 --> 00:01:21.429

And I'm coming in from a retail background and didn't know what I was looking at.

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So it was a big learning curve trying to interpret all the data. Yeah.

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One of the big things is the data is very different depending on what TPA you're looking at.

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That's a full-time job to manage five TPAs. Yeah.

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Luckily, we had a full-time person. We were fortunate because of the size of

00:01:39.237 --> 00:01:42.277

our health center, but a lot of health centers don't have that.

00:01:42.477 --> 00:01:46.897

And it can be a lot, even before you start talking about auditing,

00:01:47.477 --> 00:01:53.017

just managing the data and getting it compiled for the finance team into one

00:01:53.017 --> 00:01:56.837

manageable file is challenging every month.

00:01:56.837 --> 00:01:59.877

And that's from a health center perspective. From a hospital perspective,

00:02:00.137 --> 00:02:05.437

you toss in having to manage, different crosswalks and package sizes

00:02:05.437 --> 00:02:07.037

and billing units and all of that.

00:02:07.377 --> 00:02:10.417

GPO provisions and all of that. Yeah, that's a lot.

00:02:10.637 --> 00:02:15.857

Yeah. And I think one of the challenging points from a vendor perspective is

00:02:15.857 --> 00:02:19.197

when customers are on the set it and forget it type of mentality. Right.

00:02:19.937 --> 00:02:23.817

So 340B runs itself, doesn't it? It does. There's no hiccups ever.

00:02:23.937 --> 00:02:26.777

Nothing ever changes. It's very status quo.

00:02:27.817 --> 00:02:31.817

But, what we've done, the approach we've taken is we do a business

00:02:31.817 --> 00:02:32.997

review for all of our clients.

00:02:33.177 --> 00:02:36.857

So if you participate in it, awesome, right? We want you to participate.

00:02:37.197 --> 00:02:40.517

If you don't participate in it, we're still doing that business review and we're

00:02:40.517 --> 00:02:42.337

storing it in our CRM system.

00:02:42.717 --> 00:02:46.177

Is that like when they come on board or quarterly or monthly?

00:02:46.617 --> 00:02:48.337

Bi-weekly. Oh, wow. Okay. Yeah.

00:02:48.877 --> 00:02:53.997

And it's typical, like, accumulations, top wax spin,

00:02:54.697 --> 00:02:56.457

data feed errors that we see.

00:02:57.017 --> 00:03:00.297

And it's really nice to have. So, like, in your position, when you take over

00:03:00.297 --> 00:03:03.337

a new position at a health center, right, you could go to your,

00:03:03.497 --> 00:03:05.417

if you were using Verity, come to us and say, hey,

00:03:05.497 --> 00:03:08.137

what have been the last six months of business reviews looked like?

00:03:08.377 --> 00:03:11.937

And at least that helps bring you up to speed if nobody else was actually paying attention.

00:03:12.777 --> 00:03:15.777

So set it and forget it, I think, is one of the biggest challenges.

00:03:16.257 --> 00:03:19.757

And other challenges, some of our legacy customers might be using an old data

00:03:19.757 --> 00:03:22.157

spec, right? So if you wrote a data spec in 2016.

00:03:23.139 --> 00:03:26.059

Well, a lot of things have changed back then, and we've got a lot of optional

00:03:26.059 --> 00:03:29.659

fields in our data spec, so you're not getting the full advantage of all of

00:03:29.659 --> 00:03:32.039

our audit report fields if you don't have everything in there.

00:03:32.339 --> 00:03:36.679

I imagine in that time, even the EMR fields would change as well,

00:03:36.719 --> 00:03:37.839

the medical record fields.

00:03:38.199 --> 00:03:44.219

I've seen people that didn't fix their EMR feeds, and they have new sites that

00:03:44.219 --> 00:03:45.779

aren't feeding into their PPA.

00:03:45.779 --> 00:03:50.139

New locations or new encounter types that aren't coming over in the files

00:03:50.139 --> 00:03:55.679

if it's been almost 10 years since they set up the feed with the data spec. Yep.

00:03:55.959 --> 00:03:59.539

And I think there's a different philosophy on those locations, right?

00:03:59.619 --> 00:04:03.199

Like, so some of them, some of our customers just do their own filtering before

00:04:03.199 --> 00:04:04.439

the data even comes to Verity.

00:04:04.579 --> 00:04:06.619

And then others are using our location filtering.

00:04:06.899 --> 00:04:09.179

Now, what's kind of nice if you're using our location filtering,

00:04:09.319 --> 00:04:12.779

at least you can see there's 200 locations that aren't

00:04:12.839 --> 00:04:15.639

crosswalked and are showing as an active. So that might be like a little trigger

00:04:15.639 --> 00:04:17.159

of like, okay, maybe we should do something.

00:04:17.339 --> 00:04:20.699

But more challenging if they're filtering ahead of time, but they don't necessarily

00:04:20.699 --> 00:04:23.939

know that they're filtering new ones out.

00:04:24.059 --> 00:04:26.919

And at least with health centers, they often don't have...

00:04:27.982 --> 00:04:32.602

If they have IT departments, they're not very expansive. So it's hard for them

00:04:32.602 --> 00:04:36.442

to identify those challenges in their data feeds.

00:04:36.802 --> 00:04:42.722

We actually had a situation recently where one of the EMRs was filtering all

00:04:42.722 --> 00:04:48.322

Medicaid encounters for all of the patients. So if you were registered as Medicaid,

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they weren't even sending us those encounters.

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And the problem with that is, was Medicaid actually used at the pharmacy at

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point of sale, right? So we don't need to be actually carving that patient out.

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So again, without actually looking into the why are we filtering

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this? Why are we not sending this?

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You could really be losing out on a lot of opportunity. And,

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I think it was on Halloween we got that nice surprise from the government

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that medical claims are now included with the rebate.

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And that's referred to me rebate, yeah. Well, guess what we had to do?

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We had to update our data spec in Verity to be able to digest that.

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And if you're not looking at your data spec and asking your TPA what changes

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are coming, should I reevaluate this?

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We're not going to be able to help you submit medical claims if we don't have

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that HICS-PICS and unit of measure data.

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And even that, I think, is challenging for some covered entities,

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just the elements for the 340B rebate piece, looking at

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the HCPCS and unit of measure are probably relatively easy to pull through.

00:05:44.401 --> 00:05:52.961

However, the claim line number is not something that necessarily is accessible or sendable,

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but it is a field or a value that needs to be present in order for the claim

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to pass that front-end validation.

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So being able to then speak to your vendor to say, okay, if this isn't something

00:06:06.921 --> 00:06:10.601

that we have, how can we work to have it populate? You know,

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it needs to have a digit and needs to have an integer in that field.

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And as long as you can trace back that claim, because that's what that claim

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line number would indicate, as long as you can trace it back or it's identifiable,

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you can kind of work through that.

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But being able to work with your TPAs, plural, to make sure that you've got

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that information both going in and coming out is important. I didn't like working

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with three when I had to, so I couldn't imagine working with five.

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I quickly downsized as quickly as possible, and we still have three at my health center.

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So it's challenging, but sometimes you don't have a choice or you come in and

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there's some of those older legacy TPAs that you struggle to get rid of.

00:07:00.741 --> 00:07:06.341

But yeah, it creates challenges and it's really important that you think about that.

00:07:06.481 --> 00:07:11.101

And when you're staffing your 340B program is that you have to be able to manage

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all that data coming in and it can create some additional staff.

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Workforce. I think another great example we have of

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data being filtered out on the hospital side is billing for waste. Yes.

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And that's important with the rebate model too. It's going to be big for the

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rebate model. It's going to be big for 340B and it's huge for reimbursement.

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So it's going to be really like a three-way hit if you're not getting that. Yeah.

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And I often say that we can bring the drug in at 340B all day long,

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but if you're not getting paid for it what good is it? Yeah.

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And we've, we had a scenario where one of our customers

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was buying a ton of ramecade on whack

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like 90 of it and it was small

00:07:50.656 --> 00:07:53.416

doses it was a pediatric unit and what was happening

00:07:53.416 --> 00:07:58.036

was there's just a lot of waste so we worked with them did like nine-month reconciliation

00:07:58.036 --> 00:08:03.756

got a data upload of all those claims and then like their 340b went

00:08:03.756 --> 00:08:07.516

through the roof because they had all that backing of the waste, so waste

00:08:07.516 --> 00:08:10.876

is really something that i would also say like look into it what's your waste

00:08:10.876 --> 00:08:12.936

policy? Work with your revenue cycle director.

00:08:13.156 --> 00:08:16.096

Are you actually billing for waste? Are you putting the right modifiers on it?

00:08:16.456 --> 00:08:19.516

So there's a lot beyond just the getting the drug in at the best price.

00:08:19.616 --> 00:08:21.956

We really need to make sure we're getting paid for it as well.

00:08:22.236 --> 00:08:26.136

And I mean, along with that is, some people will view that as,

00:08:26.256 --> 00:08:30.636

oh, well, that's us working the system or getting away with something, but it's not.

00:08:30.836 --> 00:08:33.856

You just have to make sure you have the accountable or excuse me,

00:08:33.936 --> 00:08:38.696

the records to be able to demonstrate or back up the 340B behind it.

00:08:38.896 --> 00:08:42.036

It's definitely within the rule set my background

00:08:42.036 --> 00:08:44.836

prior to to 340B, I did

00:08:44.836 --> 00:08:47.736

a few years in the revenue cycle and you know it's definitely

00:08:47.736 --> 00:08:52.456

permitted by cms using that ud modifier there's policies out there that are

00:08:52.456 --> 00:08:56.076

publicly available pretty easy to find with a google search look at your top

00:08:56.076 --> 00:08:59.496

payers you know if you're an area that's dominated by a blue you know look up

00:08:59.496 --> 00:09:03.276

that local blue and what's their policy on waste billing and most likely it's

00:09:03.276 --> 00:09:06.356

going to follow what cms says put your medical jws yeah.

00:09:07.133 --> 00:09:11.013

Or JW, thank you for correcting me on there. He was like, that's Medicaid.

00:09:11.193 --> 00:09:14.213

That's wrong. Yeah, I got my modifiers mixed up.

00:09:14.693 --> 00:09:21.293

Yeah, I think that's really important because sometimes the waste is not unavoidable

00:09:21.293 --> 00:09:25.853

because of dosages. So you might as well be doing that documentation.

00:09:25.953 --> 00:09:31.093

But I think that that really brings up a good point that 340B is not a pharmacy program solely.

00:09:31.093 --> 00:09:35.553

It requires working together with your finance team, your billing team,

00:09:35.733 --> 00:09:41.113

your IT and EMR teams, that you really have to get everyone together so you

00:09:41.113 --> 00:09:43.373

can manage that program completely.

00:09:43.373 --> 00:09:46.913

And that goes for the TPA as well, because you have these data feeds.

00:09:47.193 --> 00:09:51.773

And maybe it's a nursing manager that's making sure that those waste codes are

00:09:51.773 --> 00:09:56.853

being put in there correctly. Yeah, I'm a big fan of a well-staffed steering

00:09:56.853 --> 00:09:58.473

committee for the 340B program.

00:09:58.953 --> 00:10:01.833

In one area you missed, too, I think government affairs. I think that's really

00:10:01.833 --> 00:10:05.153

important to have at the table. Like, let's be proactive with this stuff and

00:10:05.153 --> 00:10:06.333

let's not wait till there's a crisis.

00:10:06.993 --> 00:10:09.653

And finance can help with that. Revenue cycle can help with that.

00:10:10.033 --> 00:10:13.793

So I think it's definitely a multidisciplinary approach for a really strong,

00:10:13.933 --> 00:10:16.053

successful 340B IT as well.

00:10:16.213 --> 00:10:20.653

You know, have an IT at the table. So thinking about the entities that may be

00:10:20.653 --> 00:10:23.413

struggling or facing challenges with,

00:10:23.914 --> 00:10:28.054

managing their TPAs or they're not sure if they're making, you know,

00:10:28.154 --> 00:10:31.014

they're keeping up on all the data elements. I'm wondering if we can kind of

00:10:31.014 --> 00:10:35.474

go through two lists, more or less, for people to be able to use as takeaways from this.

00:10:35.614 --> 00:10:42.314

One, I'm thinking, is what elements should they be looking at with their TPAs on a regular basis?

00:10:42.594 --> 00:10:47.214

And then when they're selecting a TPA, what questions should they be asking?

00:10:47.354 --> 00:10:50.534

It's tough when you don't know what you don't know. So what things should you

00:10:50.534 --> 00:10:56.754

go in to that negotiation or conversation, hoping to get out in terms of just

00:10:56.754 --> 00:10:59.654

understanding the program to see if it fits your own covered entity.

00:11:00.354 --> 00:11:04.034

So, I mean, I'll start with, you know, one easy thing that I think could be,

00:11:04.374 --> 00:11:07.174

you know, a starting point of where to dig in a little deeper to try to find

00:11:07.174 --> 00:11:11.214

if there's issues with your program is looking at your accumulator and sorting

00:11:11.214 --> 00:11:14.454

by the negatives and anything that's excessively positive.

00:11:14.494 --> 00:11:18.294

Because if we've got excessive positives, that to me says we've got a multiplier

00:11:18.294 --> 00:11:21.194

issue or we don't have a price in our catalog.

00:11:21.214 --> 00:11:25.154

So every order is getting split to GPO or getting split to WAC and not actually

00:11:25.154 --> 00:11:26.494

being purchased on 340B.

00:11:26.754 --> 00:11:29.634

If it's excessively negative, what happened there, right?

00:11:29.754 --> 00:11:33.094

I had a situation once where a pharmacy tech with very good intentions in one

00:11:33.094 --> 00:11:36.994

of our own pharmacies would go into Cardinal and buy a generic equivalent anytime

00:11:36.994 --> 00:11:38.074

something was out of stock.

00:11:38.474 --> 00:11:40.234

Awesome. I love that you're buying the best price.

00:11:40.793 --> 00:11:44.613

But we don't have the accumulations to back that, right? So you gotta make sure

00:11:44.613 --> 00:11:46.213

that you're focusing on that.

00:11:46.413 --> 00:11:49.793

And then when it comes time for shopping for a vendor

00:11:49.893 --> 00:11:52.753

I would say rely on your peer groups, right?

00:11:52.913 --> 00:11:55.433

Don't just take the sales reps word for it.

00:11:55.773 --> 00:11:58.553

Everyone's gonna say that they're the best, but can they actually prove it?

00:11:59.173 --> 00:12:04.813

So use those conferences again, networking, ask for references from who you're evaluating.

00:12:05.173 --> 00:12:09.713

And I think that all TPAs can build a 340B bucket, right?

00:12:09.713 --> 00:12:15.293

But where areas that I think are distinguishable is the amount of support that

00:12:15.293 --> 00:12:18.553

you're going to get from that TPA because after the contract signed,

00:12:18.813 --> 00:12:20.773

what's the quality of implementation like?

00:12:20.893 --> 00:12:24.513

What is the quality of the support that you're going to get after implementation?

00:12:24.853 --> 00:12:29.333

And a lot of that is publicly tracked by external firms outside of the TPAs.

00:12:29.473 --> 00:12:33.573

So class research is one of them. You can go in, you can look at all the TPAs

00:12:33.573 --> 00:12:35.833

and how they stack up against the competition.

00:12:36.693 --> 00:12:41.853

Cybersecurity is another huge one. You know, I myself got like a $30 check from

00:12:41.853 --> 00:12:44.453

a breach that I was involved with from a hospital back in Pennsylvania.

00:12:44.713 --> 00:12:47.633

And that bought me about a muffin and a Starbucks coffee.

00:12:48.793 --> 00:12:53.213

But I mean, it is a real threat. And, you know, you want to know what is your

00:12:53.213 --> 00:12:55.273

TPA doing to keep your data safe?

00:12:55.293 --> 00:12:58.113

Because the last thing you want to do is be on the front page of a local newspaper

00:12:58.113 --> 00:13:00.893

that there was a data breach from your health center or hospital.

00:13:01.426 --> 00:13:04.806

What kinds of things, like how would they, how would a covered entity know that

00:13:04.806 --> 00:13:10.946

their TPA has proper cybersecurity measures in place? So there is certifications

00:13:10.946 --> 00:13:12.126

out there that are available.

00:13:12.666 --> 00:13:19.786

You know, SOC 2 is one that a lot use. That's more of a financial type of cybersecurity certification.

00:13:20.026 --> 00:13:25.526

And then there's HITRUST, which is the more of the healthcare sector type of cybersecurity.

00:13:25.846 --> 00:13:30.526

And Verity has HITRUST certification. I will say that that is one of the more

00:13:30.526 --> 00:13:34.766

challenging and more expensive certifications to get. So, you know,

00:13:34.866 --> 00:13:38.366

you want to know what kind of security measures are in place.

00:13:38.466 --> 00:13:41.466

And that requires us to have all different kinds of policies and procedures.

00:13:42.266 --> 00:13:44.326

Notifying our customers of any breaches.

00:13:44.686 --> 00:13:48.526

They test our staff regularly. We get phishing attempts all the time and we

00:13:48.526 --> 00:13:51.906

have to submit the phishing report and, you know, get a pass or fail and they

00:13:51.906 --> 00:13:53.006

actually track those rates.

00:13:53.526 --> 00:13:57.166

So, you know, getting to know that and then know what kind of cybersecurity

00:13:57.166 --> 00:13:59.066

coverage that they have, right?

00:13:59.486 --> 00:14:02.506

You know, someone can say, oh, we'll give you unlimited cybersecurity insurance.

00:14:02.506 --> 00:14:05.966

But if you don't have the funds to back it, it's really only as valuable as

00:14:05.966 --> 00:14:08.146

the ink that the paper's printed on.

00:14:08.326 --> 00:14:13.046

So, you know, I think that's a pretty good, what's your service like,

00:14:13.126 --> 00:14:17.086

what's your reputation like, and what's your cybersecurity measures?

00:14:17.086 --> 00:14:22.346

And one of the things I've done and I've talked to other covered entities about

00:14:22.346 --> 00:14:24.306

is you mentioned references,

00:14:24.306 --> 00:14:27.126

but it's also valuable if you find references that

00:14:27.126 --> 00:14:33.086

aren't given by the TPA as well and find them through maybe Nautopod for the

00:14:33.086 --> 00:14:39.866

health centers or the 340B health exchange where you can talk to other people

00:14:39.866 --> 00:14:44.266

and covered entities and get a reference that may not be provided from the vendor

00:14:44.266 --> 00:14:45.806

because you'll get more of a,

00:14:45.866 --> 00:14:48.746

possibly more of a, an honest review of the program.

00:14:49.246 --> 00:14:53.486

And I think something I did that's really simple, doesn't require any Excel

00:14:53.486 --> 00:14:56.086

skills because I have very minimal Excel skills.

00:14:57.126 --> 00:15:01.686

When I was looking through the reports, I would do a simple look each month

00:15:01.686 --> 00:15:04.646

at the tracking of the number of claims captured,

00:15:05.190 --> 00:15:09.110

Because I could easily see if there were anomalies and we would have a month

00:15:09.110 --> 00:15:13.670

where we drop 500 claims at a certain pharmacy and I'd know,

00:15:13.930 --> 00:15:14.870

okay, there's a problem here.

00:15:14.990 --> 00:15:19.530

I don't know what it is, but it clued me in so I could ask the questions.

00:15:19.850 --> 00:15:26.070

And that open communication with the vendor partner is really important.

00:15:26.070 --> 00:15:30.210

You may not need to know what the problem is or how to fix it,

00:15:30.290 --> 00:15:34.710

but knowing who to call and start those conversations. Ghostbusters every time.

00:15:35.190 --> 00:15:41.590

So I agree. And I think another easy way to identify where there may be a problem,

00:15:41.730 --> 00:15:46.630

even if you don't know what's causing it, is periodically pulling your electronic

00:15:46.630 --> 00:15:51.030

prescription report from your medical record to see how many prescriptions are

00:15:51.030 --> 00:15:52.370

going out to each pharmacy.

00:15:52.930 --> 00:15:57.070

And while that won't factor in if you carve out Medicaid or you've got manufacturer

00:15:57.070 --> 00:16:02.710

restrictions there, it will provide you with more or less a comparator for month over month.

00:16:02.850 --> 00:16:07.290

We've been sending about this many prescriptions to this pharmacy and we've

00:16:07.290 --> 00:16:08.670

had about this many qualify.

00:16:08.670 --> 00:16:12.670

And if there's a change that's not reflected in the other number,

00:16:13.270 --> 00:16:16.510

then being able to say, OK, is there something wrong with,

00:16:16.590 --> 00:16:19.390

are we are we qualifying based on prescriber NPI?

00:16:19.790 --> 00:16:23.650

Do we need to update the provider list? Are we qualifying based on location

00:16:23.650 --> 00:16:26.030

ID? Do we need to update any locations?

00:16:26.810 --> 00:16:31.990

Kind of using that as a starting place to be able to dig more for a root cause analysis.

00:16:32.370 --> 00:16:35.330

And most TPAs have a feeds monitor of some sort, right?

00:16:35.450 --> 00:16:38.970

So that's one of my go to's as well. Like if I've got a customer that sent us

00:16:38.970 --> 00:16:44.110

20,000 line items overnight and 900 processed, something's wrong there,

00:16:44.250 --> 00:16:45.270

right? We need to fix that.

00:16:45.510 --> 00:16:49.290

So I would also recommend looking at that, too, and see how many of your files

00:16:49.290 --> 00:16:51.890

are actually processing versus rejecting or duplicating.

00:16:52.870 --> 00:16:55.630

Yeah. Well, thanks so much, Matt. It's been really helpful to go through this.

00:16:55.830 --> 00:16:57.930

It's been fun. Thanks for having me. Yeah, it's been great.

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