San Francisco-based software technological company Chronicled, has started working on their Mediledger project that aims at streamlining the pharmaceuticals industry contract reconciliation and chargeback process. The announcement was shared in a press release dated May 2.
The press release emphasized this as a major boost to Chronicled as prominent companies in life science and healthcare sectors like Pfizer Inc., McKesson Corporation, AmerisourceBergen Corporation, and Premier Inc. are collaborating with the Mediledger project.
Mediledger, which builds supply chain solutions and blockchain-powered ecosystems, aims to enhance the perplexing process of Chargebacks. The design is to be finalized in Q1/Q2 and testing of the protocol is targeted to start in Q3 of 2019.
A chargeback framework is used nowadays for calculating price difference when medicines are sold through wholesale distributors with independently negotiated pricing and eligibility contracts.
The challenges and inefficiencies in sharing this information over to every partner are multifold, Chronicled added. By connecting different parties on a common network and automating contract reconciliation and chargeback processes, Mediledger intends to eliminate friction.
Vice President of Product Strategy and Planning for Premier Inc., Bill Marquardt was quoted stating in the press release –
“This innovative approach has the potential to transform how chargebacks work for the industry, allowing us to deliver better services to our members”.
He also expressed his delight in participating with associates to address these developments.
The release added that anyone in the industry willing to participate could make use of Mediledger’s open protocol. User information is only shared with a partner upon request of the owner of the data.
The data is not stored in a central repository, and the records are cryptographically connected through blockchain. Complete protection of the data is assured as the system does not provide anyone including Chronicled, super-user access.
CEO of Chronicled, Susanne Somerville, stated her views on the things that make this project unique as ‘It’s distributed, it’s decentralized, and the data is private. Even though Chronicled is providing the technology, industry users operate the software themselves.”
According to Chronicled, Blockchain technology is used to accomplish three things in this project: The first, ensuring there is only a single “source of truth” by synchronizing public data. Secondly, a confidential and steadfast history of transactions that safeguards business intelligence. Lastly, ensuring the integrity of the system by enforcing business rules and executing transactions by using smart contracts.
On the usability of blockchain, Chronicled CTO Maurizio Greco, stated – “Blockchain technology, in the context of MediLedger, ensures that there is one source of truth, and we can design it so only the license holder can create records for its own products, for example. This may seem like a simple illustration, but it is revolutionary.”
Meanwhile, In April, Portland State University (PSU) researchers announced a blockchain protocol they made to avert counterfeit pharmaceuticals from making their way into the market. The protocol only allows users retaining a specific key to modify or access the data by using a blockchain-based chain of information.