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The Rebate Conundrum in the Healthcare Supply Chain

Rebate and incentive payments to providers are as common in healthcare as they are uncommon in other industries. They are troublesome as they are seldom tracked properly or accounted for in a manner that provides the maximum benefit and meets the requirement of the Medicare regulations. Recently the Health and Human Services department and CMS had the Office of the Inspector General (OIG) conduct an investigation on this very subject and reported their findings.


This presentation will discuss the concept and practice of rebates in healthcare and address the following questions:

  • Rebates – A boon or a bomb?
  • Why are rebates used in business?
  • Why is HHS interested in rebates to hospitals?
  • What were their findings and recommendations?
  • What “holes” were there in this study?
  • How should hospitals be tracking their rebate revenue?

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