URGENT Message from our CEO

Pharmaceutical Returns

What does Reverse Distribution Really Cost?

2 years ago  •  by Admin

Fees for reverse distribution services are most often paid out of recovered credits from the customer’s pharmaceutical returns, so it can be challenging to decipher the billing details and get a clear picture of just what the returns process is costing you. And this is where the level and degree of reporting available to the customer makes all the difference.

Reporting that details the pharmaceutical return inventory and eligibility status is standard in most returns programs, but the details of fee calculations and other assessments can vary widely from provider to provider. And as with most things, “the devil is in the details”.

While you may have a good understanding of the “fee rate” being charged for your pharmaceutical returns, it may not be clear just what values that rate is being applied to in the actual calculation of your fees. Similarly, ancillary charges, like optional onsite service, inbound and outbound shipping, safe disposal of your ineligible items,  or the special handling necessary for any controls returned may be hard to reconcile.  There may also be external fees charged by the third party conveying your return credits that can impact your net recovery.


Transparency is key here. Look for itemized recovery and billing data in your provider’s reporting. Can you see the gross credits recovered by manufacturer? Are you able to follow the calculations from gross recovered credits to the net amount paid to you in your distribution? Is there a breakdown of the fees being charged, complete with the fee basis for each? This level of detail can give you greater control when it comes to effectively managing these costs. If you are experiencing high disposal costs for example, you can look for ways to mitigate the volume of ineligible pharmaceutical returns through better inventory management or smarter dispensary practices, meaning less of your credit recovery goes to paying for such disposal. As an added bonus, more of your expired pharmaceutical returns may be eligible for credit consideration.

We believe that when business information is presented fully and clearly, the resulting ease of understanding allows the customer greater benefit from the valuable intelligence it holds. In short, transparency makes valuable information more accessible to the customer. More importantly however, process and data transparency inspires a greater level of trust on the part of the customer, providing a sense of confidence and comfort in both the process and the results. This is what real transparency looks like in the Reverse Distribution environment. Comprehensive return reporting and detailed credit accounting from start to finish, is all conveniently accessible to GRx customers through our online customer portal.