AnnexMedAnnexMedAnnexMed
Corporate Office
USA
299 S. Main Street
Suite 1300
Salt Lake City, UT 84111
Chennai - Tower I
CeeDeeYes Tyche Towers,
Block-1 3rd Floor, Perungudi Bypass Rd, Perungudi,
Chennai - 600096
Chennai - Tower II
4th Floor, IIFL TOWERS
MGR Main Rd,
Perungudi, Chennai - 600096
Villupuram
No 9, Viswalingam Layout
Villupuram,
Tamil Nadu – 605602

Contract & Chargeback Management

Facility Contract Billing and Wholesaler Chargeback Recovery as One Discipline

Facility contract billing across capitated, per-diem, and per-script models — combined with wholesaler chargeback reconciliation and recovery on contract-specific inventory and pricing arrangements. Two workflows that share data; managed as one operation.

98%+

Contract Rate Accuracy

85%+

Chargeback Recovery Rate

INTEGRATED CONTRACT +

Wholesaler Visibility

The Reality

Why contract billing and chargeback recovery belong on the same team?

Most pharmacy operations run facility contract billing and wholesaler chargeback recovery as separate workstreams — different teams, different systems, different reporting cadences. The problem: they share the same underlying data. A facility contract that defines special pricing on a drug class also defines the wholesaler chargeback arrangement on that same inventory. Run them separately and you create reconciliation gaps that quietly drain revenue from both sides of the equation.

Contract Pricing and Wholesaler Chargebacks Are Linked

Facility contracts often specify drug-class pricing tied to wholesaler chargeback arrangements — the facility gets the contract price, and the wholesaler chargebacks the manufacturer for the spread. When the contract billing system and the wholesaler chargeback reconciliation are separate operations, reconciliation gaps appear at every contract-chargeback intersection.

Per-Diem and Per-Script Reconciliation Complexity

Per-diem facility contracts pay a daily rate regardless of actual dispensing volume. Per-script contracts pay per fill. Hybrid arrangements layer both. Reconciling actual dispensing against contracted payment requires accounting infrastructure most pharmacy billing systems don't have.

Wholesaler Chargeback Disputes

Wholesaler chargebacks fail at high rates — manufacturer rejections, contract eligibility disputes, expired contract claims, NDC mismatches. Without active dispute workflow, rejected chargebacks accumulate into substantial cumulative loss that pharmacies absorb as cost-of-doing-business.

Manufacturer Contract Eligibility Changes

Manufacturer chargeback contracts have eligibility rules that change quarterly — covered NDCs shift, eligible customer classes change, contract pricing tiers update. Pharmacies running on stale contract data submit chargebacks that get rejected at high rates.

Cross-System Data Reconciliation

Facility contract billing data lives in one system. Wholesaler chargeback data lives in another. Manufacturer eligibility data lives in a third. Reconciling across three systems manually is operationally impossible at scale — so reconciliation gaps stay invisible until quarterly audits surface them.

340B and Mixed-Use Layering

For closed-door pharmacies serving 340B-eligible covered entities, contract and chargeback workflows must additionally layer 340B vs. non-340B inventory routing. Adding 340B to the contract-chargeback equation increases reconciliation complexity by an order of magnitude.

Our approach

We run contract billing and wholesaler chargeback recovery as one integrated discipline

AnnexMed runs facility contract billing and wholesaler chargeback management as a single integrated operation — with shared contract data infrastructure, unified reconciliation workflow, active chargeback dispute pursuit, and continuous manufacturer eligibility tracking. We don’t manage contract billing in one workstream and chargebacks in another. We manage them as the connected revenue and cost-recovery equation they actually are.

We serve closed-door pharmacies operating across SNFs, ALFs, correctional facilities, hospice agencies, and behavioral health centers — wherever facility contract billing intersects with wholesaler chargeback economics. Our team manages contract billing under capitated, per-diem, per-script, and hybrid models, alongside wholesaler chargeback reconciliation across the major distributors (Cardinal Health, McKesson, AmerisourceBergen) and manufacturer contract eligibility libraries.

Recent client results

A multi-state closed-door pharmacy operating 48 facility contracts and managing $14M in annual wholesaler chargeback volume improved chargeback recovery rate from 58% to 87% within 120 days of go-live, capturing approximately $1.2M in previously-rejected chargebacks. A regional closed-door pharmacy serving SNFs and hospice agencies identified $390,000 in annual contract-chargeback reconciliation gaps where contract billing rate and wholesaler chargeback arrangement had drifted out of alignment. A correctional pharmacy serving 14 county jail contracts reduced manufacturer chargeback rejection rate from 34% to 6% through continuous eligibility tracking and dispute workflow.

85%+

Wholesaler Chargeback Recovery Rate

98%+

Contract Rate Billing
Accuracy

Integrated

Contract + Chargeback
Operation

How we support you

End-to-End integrated contract & chargeback operation

AnnexMed runs contract and chargeback management as a three-stage integrated operation — facility contract billing under multiple reimbursement models, wholesaler chargeback reconciliation and dispute recovery, and continuous manufacturer eligibility tracking — so contract revenue gets billed accurately and cost-recovery chargebacks reach manufacturers at industry-leading recovery rates.

Facility Contract Billing

Per-contract reimbursement execution

Wholesaler Chargebacks

Cost-recovery on contract inventory

Integrated Reconciliation

Contract + chargeback alignment

Financial impact

What integrated contract & chargeback operations mean in dollars?

For a closed-door pharmacy with substantial facility contract book and wholesaler chargeback volume, integrated contract and chargeback operations regularly deliver $800K–$3M+ in net annual financial benefit through chargeback recovery improvement, contract billing accuracy, manufacturer eligibility tracking, and cross-system reconciliation gap elimination. Most closed-door pharmacies achieve full ROI on integrated operations within 6–8 months.

Fast Results

Chargeback recovery rate improvement shows within the first 90 days as dispute workflow activates on rejected chargebacks. Contract-chargeback reconciliation gaps surface in the first quarter as integrated reporting reveals drift between billing systems.

Built for Three Major Distributors

Wholesaler chargeback reconciliation supports Cardinal Health, McKesson, and AmerisourceBergen — the three distributors that handle the vast majority of closed-door pharmacy inventory. Multi-distributor pharmacies don’t face vendor coverage gaps.

Improvement Area
Estimated Annual Impact

Wholesaler Chargeback Recovery (58% → 87%)

$400K – $1.5M annually in recovered chargebacks

Aged Chargeback Historical Sweep (first 6 months)

$300K – $1M in one-time historical recovery

Contract Rate Billing Accuracy

$200K – $700K annually in correctly billed contracts

Contract-Chargeback Reconciliation Gap Capture

$150K – $500K annually in drift recovery

Manufacturer Eligibility Tracking

$100K – $400K annually in reduced rejection rate

340B Layered Reconciliation

$120K – $400K annually for 340B-eligible operations

Staffing Cost Reduction / Replacement

$180K – $450K annually

Contract & chargeback performance targets

KPIs we hold ourselves accountable to — tracked in real time through your operational dashboards:
Performance Metric
Industry Benchmark
AnnexMed Target

Wholesaler Chargeback Recovery Rate

Industry avg: 52–68%

85%+

Contract Rate Billing Accuracy

Industry avg: 84–92%

98%+

Manufacturer Chargeback Rejection Rate

Industry avg: 24–34%

< 8%

Contract-Chargeback Reconciliation

Industry standard: Quarterly catch-up

Continuous

Manufacturer Eligibility Update Cadence

Industry standard: Annual or ad-hoc

Quarterly

Wholesaler Coverage

Most vendors cover 1–2 distributors

Cardinal + McKesson + ABC

Aged Chargeback Recovery

Industry: rarely pursued

70%+ historical sweep

340B Integration

Industry: separate workstream

Standard

Why AnnexMed?

Separate workstreams vs. AnnexMed integrated operation

Contract billing and wholesaler chargebacks share underlying data — but most pharmacy operations manage them separately. Here’s how AnnexMed compares to typical in-house or generalist operations:

In-House / Traditional
AnnexMed Partnership

Operational Integration

Contract billing and chargebacks in separate workstreams

One integrated team managing the connected equation

Chargeback Recovery Rate

52–68% on submitted chargebacks

85%+ with active dispute and eligibility tracking

Manufacturer Eligibility

Annual or ad-hoc update cadence

Quarterly eligibility verification across all manufacturers

Contract-Chargeback Reconciliation

Quarterly catch-up; gaps accumulate

Continuous reconciliation with NDC-level alignment

Wholesaler Coverage

Strong on one distributor; gaps on others

Cardinal Health, McKesson, AmerisourceBergen all covered

Aged Chargeback Treatment

Aged rejections written off

Six-month historical sweep with dispute workflow

340B Layering

Separate 340B reconciliation workstream

Integrated 340B vs. non-340B inventory routing

Cost to Operate

$75K–$110K per FTE for chargeback specialist

30–40% lower with integrated team capacity

Technology

Powered by proprietary AI & analytics

AnnexMed’s technology stack was built for payer-specific operational demands, not adapted from provider-side billing tools. Risk adjustment accuracy, payment integrity, and credentialing compliance each require different data models, workflow logic, and reporting architectures than provider RCM. Our platform reflects that.

AI Agents & Automation

AI Agents & Intelligent Automation deploys autonomous AI agents across the full revenue cycle, automating eligibility verification, prior authorization, claims processing, payment posting, and denial management at hospital scale and speed.

Data & Analytics Platform

Data & Analytics Platform delivers real-time Power BI dashboards built for hospital executive visibility, including system-wide KPIs, service line performance, payer analysis, productivity, financial forecasting, and national benchmarking insights.

Intelligent AR Management

Intelligent AR Management handles A/R follow-up at hospital scale with intelligent worklists prioritized by dollar value and aging, payer-specific follow-up rules, automated escalation for high-value accounts, and full accountability for every claim.

Computer Assisted Coding

Computer Assisted Coding orchestrates hospital coding operation, intelligent chart assignment by service line, TAT tracking with SLA monitoring, quality audits with accuracy scoring, and coder performance management at enterprise scale.

Together, these platforms create a fully instrumented RCM operation where nothing falls through the cracks. You don’t interact with these systems directly, but the results they enable show up directly in your financial performance.

user-bg

Ready to stop running contract billing and chargebacks as separate workstreams?

Most closed-door pharmacies identify $800K–$2.5M in chargeback recovery, contract accuracy, and reconciliation gap capture in their first assessment. Schedule a no-obligation Contract & Chargeback Audit.

Trusted by 100+ Healthcare Providers | AAPC, AHIMA & AAHAM Certified | SOC 2 Type II | HIPAA Compliant

man-annex-CTA

Payer client outcomes

AnnexMed delivers measurable financial impact within the first 60 to 90 days of engagement. The following represent outcomes from active payer partnerships:

$15M–$40M

Risk
Adjustment

$18M–$50M

Payment
Integrity

6 Weeks

Credentialing Clearance

$15M–$50M+

Revenue
Impact

Case Studies

See the impact we deliver

Discover how AnnexMed reduces denials, accelerates reimbursements, and strengthens financial performance. Backed by measurable outcomes and proven RCM expertise, we deliver operational excellence, revenue stability, and sustainable growth you can trust.

Client Voices

See how our clients succeed

Hear from organizations that trust AnnexMed to reduce denials, accelerate reimbursements, and strengthen cash flow. Our expert support delivers measurable performance gains, operational efficiency, financial stability, and scalable growth.
Claims adjudication backlogs were delaying provider payments and increasing complaint volumes. AnnexMed took over processing, cleared the backlog in 30 days, and improved turnaround by 45%. Provider satisfaction scores climbed significantly, dispute volumes dropped, and our network relationships strengthened significantly.
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Dr. Richard Calloway

Horizon Health Plan
Our payer operations team was overwhelmed with member inquiries, provider disputes, and claims rework. AnnexMed brought dedicated support that handled every function with accuracy and speed. Processing errors dropped by 60%, provider abrasion decreased, and our operational costs came down by nearly a third.
Anx Testimonial

Dr. Priya Menon

Crestview Insurance Partners
Managing claims accuracy, provider data, and member support internally was draining our resources. AnnexMed streamlined our payer operations end to end. Claims processing improved, provider onboarding accelerated, and our administrative burden reduced dramatically. They understand payer complexity like no other partner.
Anx Testimonial

Laura Simmons

Meridian Managed Care

Proven RCM expertise. Delivered at scale.

For over 20 years, AnnexMed has delivered RCM solutions nationwide, combining expert billing, coding, and AR support to drive measurable results and growth.

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Want to talk to our RCM experts?

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