Innovative Rebate Management in Oncology Drug Budgets: Streamlining Operations and Enhancing Financial Efficiency Through Technology in Newfoundland and Labrador's Cancer Care Program

OBJECTIVES: Over the past decade, sales of oncology medicines in Canada have nearly tripled. In Newfoundland and Labrador (NL), hospital-administered oncology drugs are listed through an annual budget process managed through the provincial cancer care program. Rigorous management of the oncology drug budget is essential to offer innovative therapies to patients. Historically, the rebate calculations for these drugs were conducted manually, which was both time-consuming and more liable to errors. NL Health Services (NLHS) Cancer Care aimed to innovate the Product Listing Agreement (PLA) management process.

METHODS: The introduction of an innovative platform sought to expedite rebate processing, increase human resource efficiency, reduce the risk of lost revenue, and enable accurate reporting. Through NLHS’ Health Innovation Summit, NLHS Cancer Care identified Lyfegen HealthTech AG as the ideal collaborator. The Lyfegen Analytics Platform was launched in December 2023. The PLA portfolio was fully integrated, initiating an automated rebate management process.

RESULTS: The implementation of the Lyfegen Analytics Platform identified an estimated $600,000 CAD in previously missed rebates through a retroactive assessment. The platform significantly improved efficiency in manpower and time while enhancing the accuracy of rebate calculations. This led to substantial cost-savings, including efficient resource allocation that allowed for the non-replacement of a retiring full-time employee. The introduction of technology in the rebate management process generated considerable savings, which allowed for reinvestment into the oncology drug budget for funding of other high priority innovative therapies.

CONCLUSIONS: The strategic partnership between NLHS Cancer Care and Lyfegen HealthTech AG has streamlined operations and established a foundation for continued innovation and financial optimization in the management of oncology drug rebates. Stakeholders, including healthcare providers and patients, benefit from the increased efficiency and cost-savings, ensuring the efficient reimbursement of innovative therapies and a financially sustainable healthcare system.