Decentralized Rebate Management via Blockchain Intermediary
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Solution Overview
Problem
The current rebate management system in the pharmaceutical industry is inefficient due to discreet contract negotiations by pharmacy benefit managers, leading to high medication costs and unfair competition, and lacks transparency and fairness in rebate negotiations.
Innovation Solution
A decentralized rebate management system using blockchain technology that enables secure, transparent, and efficient processing of prescription claims by utilizing a computing device to analyze rebate conditions, apply them to patient claims, and verify patient data on a private blockchain, while using a public blockchain for point-of-sale transactions and smart contracts to facilitate instantaneous transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If pharmacy benefit managers use discreet contract negotiations for rebate management, then they can maintain individual negotiating power and control, but transparency and fairness in rebate negotiations deteriorate, leading to unfair competition and high medication costs
Solution Approach 1:
The patent introduces a blockchain-based intermediary system that mediates between pharmacy benefit managers and pharmaceutical manufacturers. This decentralized platform allows rebate agreements to be recorded and verified on an immutable ledger, providing transparency to all participants while maintaining the negotiating autonomy of each entity. The blockchain acts as a neutral mediator that enables fair competition through visible pricing information.
2Ease of operation
If pharmacy benefit managers conduct discreet rebate negotiations, then individual control is maintained, but competition fairness deteriorates and medication costs increase
Solution Approach 1:
The patent creates a universal blockchain platform that serves multiple functions simultaneously: it maintains the control and autonomy of individual pharmacy benefit managers, enables fair competition through transparent pricing, and improves overall system efficiency. The decentralized network allows multiple entities to interact on equal footing while preserving their individual decision-making capabilities.
3Speed
If traditional centralized rebate management is used, then processing speed may be maintained through central control, but transparency and fairness deteriorate
Solution Approach 1:
The patent segments the centralized rebate management system into decentralized autonomous units operating on blockchain technology. Each participant maintains their own data and processing capabilities while contributing to a shared immutable ledger. This segmentation enables parallel processing across multiple nodes, maintaining speed while providing transparent verification of all transactions to all participants.
Data Source
AI summary
An apparatus for secure decentralized rebate management is presented. The apparatus includes at least a processor and a memory containing instructions configuring the at least a processor to receive a claim process request including a plurality of elements of a user data and generate a claim initial entry comprising a conditional claim trigger configured to deploy on an immutable sequential listing. The at least a processor is further configured to execute a claim mapping function including the at least a processor to generate a conditional rebate array including a plurality of rebate requirements, match each rebate requirement to each element of the user data, deploy a plurality of claim test entries representing matches on a private layer, and determine a claim mapping result. The at least a processor is configured to generate a claim result entry configured to deploy on the immutable sequential listing and execute the conditional claim trigger.