“PSG has been instrumental in assisting with plan design.”
—Benefits Coordinator, Hospital System
Contract Development and Negotiation
Aggressively representing our client’s interests in the contracting process is a key part of the services PSG provides. Our team understands how to translate promises made by PBMs into tangible service/pricing commitments in contract language. Having engaged in over 500 procurement projects and negotiating contracts with over 30 different PBMs, we are able to cut through the bureaucracy that less experienced firms may not be able to navigate. We assist our clients with negotiating definitions, pricing, performance standards, audit rights, and other key variables with the PBM.
The core components of PSG’s pharmacy benefit manager contract analysis are illustrated in the following graph.
Contract Negotiation Phases
- Agree on and document minimum outcomes needed from negotiation process.
- Finalize timeframe and detailed work plan for negotiations.
- Develop requirements document and distribute to the PBM.
- Evaluate offer.
- Work with the client to secure best offer in terms of pricing, contract terms, and performance guarantees.
- If acceptable, facilitate finalization and execution of documents.