Data Driven: How Aggregate Spend Reporting Affects the Healthcare Industry

87% of companies are very involved with making sure they meet global, federal, and state disclosure regulations. 

Aggregate Spend is not another transparency clause, it’s a call to action. The government wants the healthcare industry to embody transparency in everything they do. But what does Aggregate Spend state? And what’s the best way to go about ensuring you meet these regulations? 

Let’s take a look at what the new regulations are, and the impact it has on healthcare manufacturers.

Reporting Requirments

Across the United States, Aggregate Spend has become an enforced regulation. It is to ensure the tracking of all spending from pharmaceutical, medical device, and biotechnology companies. The companies are to report all monetary transactions – even gifts.  

This was first introduced during the Patient Protection and Affordable Care Act. Regulation interpretation tells us there was a need for clarity between physicians and manufacturers.

The goal was to put in place a mandatory reporting system and to limit the spending of physicians. 

Why BI?

But what’s the best way to go about ensuring your company meets these regulations? The answer is business intelligence.

Using Business Intelligence (BI) tools in any industry is beneficial. It helps process huge amounts of data and supports decision-making. And now it helps make sense of increasing regulations. 

Data Analytics

Healthcare manufacturers have always collected huge amounts of data. From financial transactions to entire operations, information is being sourced. And with the global pandemic, these numbers increased. 

Humans cannot process and analyze multiple data sources at a useful rate. With healthcare BI you can process and use that information almost immediately. And what you gain from the data analytics is decision-making support, predictive analytics, and streamlined operations. 

Data identification produces unseen connections that can improve all aspects of the manufacturer’s business. 

System Implementation 

Understanding new regulations, and then implementing them is a process that can take months to do. But what if there was a tool that did it for you? With BI, there is a software you can install that completes Aggregate Spend reporting for you. It can track payments in real-time, collecting, and organizing all the reports. So when it is time, all you must do is hit send.  

That’s what programs like Porzio AggregateSpendID do. They help healthcare manufacturers make sense of new laws and make sure they abide by them. 

Failing to abide by regulations can end in hefty fines and even worse repercussions. Avoid all those situations by using BI systems built to help your company. 

The Benefits of Aggregate Spend

Aggregate Spend is not only about enforcing monetary transparency. It’s trying to help the people as well. To increase cost-effectiveness and provide a better understanding of how the industry works. And even though its rules may be complicated, there are tools out there to help companies process the new regulations without issue.

If there’s more you’d like to learn about the healthcare industry or want to see more about BI tools, then check out our blog for information on all things business and technology!