Method for competitive prescription drug and/or bidding service provider selection

• US 8,346,571 B2
• Filed: 09/20/2004
• Issued: 01/01/2013
• Est. Priority Date: 09/19/2003
• Status: Active Grant

• Current Assignee: The Tag Company US LLC
• Original Assignee: The Tag Company US LLC
• Inventors: Kalies, Ralph F. Jr.
• Primary Examiner(s): Morgan, Robert
• Assistant Examiner(s): LAM, ELIZA ANNE
• Application Number:
  US10/945,382
• Publication Number:
  US 20050065821A1
• Time in Patent Office: 3,025 Days
• Field of Search: None
• US Class Current: 705/2
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G16H 20/00 ICT specially adapted for therapies or health-improving plans, e.g. for handling prescriptions, for steering therapy or for monitoring patient compliance

Abstract

Unfilled prescriptions are submitted to a registry comprising pre-qualified pharmacies for a “reverse auction” in which the pharmacies bid for the opportunity to fill the prescription. The pharmacies are allowed to bid based on price and/or offering ancillary services. The auction may also be used to bid on supplying specified pharmaceutical cognitive services. The method may also include obtaining cost comparisons with generic substitutes or similar alternative pharmaceutical products. The system may further comprise automatically requesting a review by the prescriber for a list of similar substitutes or prior-authorization for third-party payers. The winner of the reverse auction is selected by the customer.

Claims

1. A method for facilitating the delivery of prescription products or services, the method comprising the steps of:

providing a processing unit programmed with a rules engine to carry out the steps of the method;

providing a database for storage and retrieval of information by the processing unit;

providing a plurality of input/output devices for communication;

communicating, from a customer to the processing unit, unfilled prescription information and customer information, wherein the unfilled prescription was provided by a prescriber;

communicating, from the processing unit to the customer, cost information for both the unfilled prescription and for any similar products, the cost information including a price, availability of any discount coupons, a co-pay for any third-party payer benefits, and a final cost to the customer;

the customer comparing the cost information;

the customer selecting a prescription, the select prescription comprising the unfilled prescription or a select similar product;

communicating, from the customer to the processing unit, the select prescription comprising

the prescriber modifying the unfilled prescription as needed to conform to the select prescription;

communicating the modified unfilled prescription information from the processing unit to a plurality of pre-qualified prescription fulfillment providers;

conducting a reverse auction in which the pre-qualified prescription fulfillment providers communicate to the processing unit interactive and iterative bids to fill the modified unfilled prescription, each fulfillment provider receiving real-time feedback communications from the processing unit regarding the status and placement of their bids in comparison to other fulfillment providers, each fulfillment provider having the option of communicating to the processing unit amended bids that include at least one of new, lower prices and ancillary services in competition with the bids of other fulfillment providers to entice the customer to select their bid;

providing a results communication from the processing unit to the customer, the results communication including details of the final bid of each responding prescription fulfillment provider that made at least one bid to fill the modified unfilled prescription; and

,

allowing the customer to select a winning bid by sending an instruction communication to the processing unit,

the communications between the customer and the processing unit and the communications between the processing unit and the fulfillment providers being accomplished using input/output devices at each of the customer, processing unit and fulfillment providers.

2. The method of claim 1, wherein the prescription is for at least one of:

drugs;

physical therapy;

laboratory or diagnostic services;

optical lenses;

surgery;

dental services;

dental devices;

orthodontic devices;

orthodontic services;

or, psychiatric services.

3. The method of claim 1, further including the step of allowing the prescriber to act as a proxy for the customer.

4. The method of claim 1, wherein the prescription fulfillment provider is at least one of:

a pharmacist;

a physical therapist;

a laboratory technician;

a medical diagnostic device technician;

a surgeon;

a lens maker;

a dentist;

an orthodontist;

a physician;

a psychiatrist;

a psychologist;

or, a social worker.

5. The method of claim 1 wherein the prescriber is any person authorized to order medical or health related products, tests and/or services.

6. The method of claim 1 wherein the prescriber is at least one of a physician, surgeon, optometrist, optician, dentist, orthodontist, physical therapist, psychiatrist, psychologist, social worker, or veterinarian.

7. The method of claim 1, further comprising the step of setting a predetermined time limit to conclude the reverse auction.

8. The method of claim 7, further comprising the step of providing the customer with the option of one of:

selecting the winning bid prior to the conclusion of the predetermined time limit at any time during the reverse auction; and

selecting the winning bid following conclusion of the predetermined time limit.

9. The method of claim 1, further including the step of providing the customer with the option of selecting the winning bid at any time during the reverse auction.

10. The method of claim 1, further comprising the step of the processing unit notifying all responding prescription fulfillment providers of the customer'"'"'s selection.

11. The method of claim 1, further comprising the steps of:

the processing unit providing a reservation number and code key to the customer; and

the processing unit providing the reservation number to the responding prescription fulfillment provider with the winning bid.

12. The method of claim 1, further including the step of providing the prescription in physical form, the physical prescription remaining with the customer until filled at the prescription fulfillment provider with the winning bid.

13. The method of claim 1, further including the step of allowing only prescription fulfillment providers that are at least one of within a specified service area and serving via mail order to bid.

14. The method of claim 1, wherein the prescription information is communicated electronically between the customer and the processing unit, and between the processing unit and the prescription fulfillment providers.

15. The method of claim 14, wherein the electronic transfer is accomplished via an intranet, the Internet, or a combination of both.

16. The method of claim 1 wherein the unfilled prescription information comprises at least one of prescription name, drug strength, prescription quantity and bidding time limit.

17. The method of claim 16, wherein the prescription information further comprises at least one of form of drug or ancillary prescription fulfillment provider services desired.

18. The method of claim 1, wherein the prescription fulfillment providers bid automatically based on predetermined parameters established by the prescription fulfillment provider.

19. The method of claim 18, wherein the predetermined parameters comprise indexing to an industry standard price index.

20. The method of claim 1, further comprising the step of the processing unit providing electronic prior authorization means to a third party payer if prior authorization is required for the prescription or for ancillary services included in a bid.

21. A system for facilitating the fulfillment of prescribed products and/or services;

the system comprising;

at least one first input/output device for a customer to submit customer information and information for at least one unfilled prescription provided by a prescriber and to receive information in connection with the unfilled prescription and similar products;

at least one second input/output device for communicating information in connection with the unfilled prescription and similar products to a registry comprising pre-qualified prescription fulfillment providers and for the pre-qualified prescription fulfillment providers to interactively and iteratively submit bids in connection with the unfilled prescription and similar products; and

,

a processing unit programmed by a rules engine and coupled to a database, the processing unit being in electronic communication with the first input/output device and the second input/output device, the processing unit providing the customer with cost information for both the unfilled prescription and for any similar products, the cost information including a price, availability of any discount coupons, a co-pay for any third-party payer benefits, and a final cost to the customer,

the customer comparing the cost information,

the customer selecting a prescription, the select prescription comprising the unfilled prescription or a select similar product,

the customer communicating the select prescription to the processing unit,

the prescriber modifying the unfilled prescription as needed to conform to the select prescription,

the processing unit communicating the modified unfilled prescription to the fulfillment providers for bids from the fulfillment providers,

each fulfillment provider receiving real-time feedback from the processing unit regarding the status and placement of their bids to fulfill the modified unfilled prescription in comparison to other fulfillment providers, each fulfillment provider having the option of responding to the processing unit with amended bids that include at least one of new, lower prices and ancillary services in competition with the other fulfillment providers to entice the customer to select their bid.

22. The system of claim 21, wherein the first input/output device is an interface to an intranet, the Internet or both.

23. The system of claim 21, wherein the second input/output device is an interface to an intranet, the Internet or both.

24. The system of claim 21, wherein the electronic communication is via an intranet, Internet or both.

25. The system of claim 21, wherein the unfilled prescription is for a drug and the unfilled prescription further includes a request for a similar product price comparison to identify a list of products comprising alternative medications potentially similar to the prescribed drug along with relative costs for such identified similar products, the comparison being carried out by the processing unit.

26. The system of claim 21, wherein the rules engine further includes instructions to carry out automatic bidding.

27. The system of claim 21 further comprising at least one third input/output device for at least one of manufacturers and suppliers of prescribed products to provide direct-to-customer advertising and/or cost incentives to the customer.

28. The system of claim 27 wherein the cost incentives are electronic coupons.

29. A method for facilitating-the delivery of prescription products or services, the method comprising the steps of:

providing unfilled prescription information and customer information from a customer to a participating bidding service provider, wherein the unfilled prescription is provided by a prescriber;

communicating, from the bidding service provider to the customer, cost information relating to both the unfilled prescription and to any similar products, the cost information including a price, availability of any discount coupons, a co-pay for any third-party payer benefits, and a final cost to the customer;

the customer comparing the cost information;

the customer selecting a prescription, the select prescription comprising the unfilled prescription or a select similar product;

communicating, from the customer to the bidding service provider, the select prescription;

the prescriber modifying the unfilled prescription as needed to conform to the select prescription;

transferring, via electronic means, the modified unfilled prescription information from the bidding service provider to a registry of pre-qualified pharmacies;

conducting a reverse auction in which the pre-qualified pharmacies respond to the bidding service provider with interactive and iterative bids to fill the modified unfilled prescription, each pre-qualified pharmacy receiving real-time feedback from the bidding service provider regarding the status and placement of their bids in comparison to other pre-qualified pharmacies, each pre-qualified pharmacy having the option of responding to the bidding service provider with amended bids that include at least one of new, lower prices and ancillary services in competition with the other pre-qualified pharmacies to entice the customer to select their bid;

providing the customer with the details of the lowest bid of each responding pharmacy that made at least one bid to fill the prescription; and

,

allowing the customer to select the winning bid.

30. The method of claim 29 further including the step of allowing the prescriber to act as a proxy for the customer.

31. The method of claim 29 wherein the prescriber is any person authorized to prescribe drugs.

32. The method of claim 29 wherein the customer may select the winning bid at any time during the reverse auction.

33. The method of claim 29, further comprising the step of setting a predetermined time limit to conclude the reverse auction.

34. The method of claim 33 wherein the customer has the option of selecting the winning bid prior to the conclusion of the predetermined time limit at any time during the reverse auction or selecting the winning bid following the conclusion of the predetermined time limit.

35. The method of claim 29, further comprising the step of notifying all responding pharmacies of the customer'"'"'s selection via the bidding service provider.

36. The method of claim 29, further comprising the step of providing a reservation number and key code to the customer and the same reservation number to the responding pharmacy with the winning bid.

37. The method of claim 29 wherein the prescription is in physical form and the physical prescription remains with the customer until filled at the pharmacy with the winning bid.

38. The method of claim 29 wherein the prescription is transferred from the prescriber to the pharmacy with the winning bid via facsimile, telephone, or electronic communication.

39. The method of claim 29 wherein only pharmacies within a specified service area and/or serving via mail order are allowed to bid.

40. The method of claim 29, wherein the prescription information is provided electronically.

41. The method of claim 40, wherein the electronic transfer is via an intranet, the Internet, or a combination of both.

42. The method of claim 29, wherein the pharmacies bid against each other by offering a lower price and/or ancillary services.

43. The method of claim 29 wherein the prescription information comprises prescription name, drug strength, prescription quantity and bidding time limit.

44. The method of claim 43, wherein the prescription information further comprises at least one of form of drug or ancillary pharmacy services desired.

45. The method of claim 29, wherein the pharmacies bid automatically based on predetermined parameters established by the pharmacy.

46. The method of claim 45, wherein the predetermined parameters comprise indexing to an industry standard price index.

47. The method of claim 29, further comprising the bidding service provider contacting a third party payer if prior authorization is required for the prescription or for ancillary services included in a bid.

48. A method for facilitating the delivery of prescription products, using a processing unit performing the method comprising the steps of:

providing unfilled prescription information and customer information from a customer to a participating bidding service provider/administrator, the unfilled prescription being provided by a prescriber;

communicating, from the bidding service provider/administrator to the customer, cost information relating to both the unfilled prescription and to any alternative medications, the cost information including a price, availability of any discount coupons, a co-pay for any third-party payer benefits, and a final cost to the customer;

the customer comparing the cost information;

communicating, from the customer to the bidding service provider/administrator, a select prescription comprising the unfilled prescription or a select alternative medication;

obtaining authorization from the prescriber modify the unfilled prescription as needed to conform to the select prescription;

transferring information for the unfilled prescription, modified as needed to conform to the select prescription, from the bidding service provider to a registry of pre-qualified pharmacies;

conducting a reverse auction in which the pre-qualified pharmacies respond with interactive and iterative bids to fill the modified unfilled prescription, each pre-qualified pharmacy receiving real-time feedback from the bidding service provider/administrator regarding the status and placement of their bids in comparison to other pre-qualified pharmacies, each pre-qualified pharmacy having the option of responding to the bidding service provider/administrator with amended bids that include at least one of new, lower prices and ancillary services in competition with the other pre-qualified pharmacies to entice the customer to select their bid;

providing the customer with the details of the lowest bid of each responding pharmacy that made at least one bid to fill the prescription; and

;

allowing the customer to select the winning bid.

49. The method of claim 48 wherein the prescriber acts as a proxy for the customer.

50. The method of claim 48 wherein the prescriber is any person authorized to prescribe drugs.

51. The method of claim 48 wherein the customer may select the winning bid at any time during the reverse auction.

52. The method of claim 48, further comprising the step of setting a predetermined time limit to conclude the reverse auction.

53. The method of claim 52 wherein the customer has the option of selecting the winning bid prior to the conclusion of the predetermined time limit at any time during the reverse auction or selecting the winning bid following the conclusion of the predetermined time limit.

54. The method of claim 48, further comprising the step of notifying all responding pharmacies of the customer'"'"'s selection via the bidding service provider.

55. The method of claim 48, further comprising the step of providing a reservation number and key code to the customer and the same reservation number to the responding pharmacy with the winning bid.

56. The method of claim 48 wherein the prescription is in physical form and the physical prescription remains with the customer until filled at the pharmacy with the winning bid.

57. The method of claim 48 wherein the prescription is transferred from the prescriber to the pharmacy with the winning bid via facsimile, telephone, or electronic communication.

58. The method of claim 48 wherein only pharmacies within a specified service area and/or serving via mail order are allowed to bid.

59. The method of claim 48, wherein the prescription information is provided electronically.

60. The method of claim 59, wherein the electronic transfer is via an intranet, the Internet, or a combination of both.

61. The method of claim 48, wherein the pharmacies bid against each other by offering a lower price and/or ancillary services.

62. The method of claim 48 wherein the prescription information comprises prescription name, drug strength, prescription quantity and bidding time limit.

63. The method of claim 62, wherein the prescription information further comprises at least one of form of drug or ancillary pharmacy services desired.

64. The method of claim 48, wherein the pharmacies bid automatically based on predetermined parameters established by the pharmacy.

65. The method of claim 64, wherein the predetermined parameters comprise indexing to an industry standard cost index.

66. The method of claim 48, further comprising the bidding service provider contacting a third party payer if prior authorization is required for the prescription or for ancillary services included in a bid.

67. The method of claim 48 wherein the unfilled prescription information is transferred via electronic means.

68. A method for contracting for pharmaceutical cognitive services, using a processor to perform the method comprising:

submitting a request for specified pharmaceutical cognitive services from a customer to a participating bidding service provider;

communicating, from the bidding service provider to the customer, cost information for both the request for specified pharmaceutical cognitive services and for any similar products, the cost information including a price, availability of any discount coupons, a co-pay for any third-party payer benefits, and a final cost to the customer;

the customer comparing the cost information;

the customer selecting pharmaceutical cognitive services, the select pharmaceutical cognitive services comprising the request for specified pharmaceutical cognitive services or a select similar product;

communicating, from the customer to the processing unit, the select pharmaceutical cognitive services or a select similar product;

the prescriber modifying the request for specified pharmaceutical cognitive services as needed to conform to the select request;

pharmaceutical cognitive services;

transferring the modified request for specified pharmaceutical cognitive services from the bidding service provider to a registry of pre-qualified pharmaceutical service providers;

conducting a reverse auction in which the pre-qualified pharmaceutical service providers respond with interactive and iterative bids to fulfill the modified request for specified pharmaceutical cognitive services, each pharmaceutical service provider receiving real-time feedback from the bidding service provider regarding the status and placement of their bids in comparison to other pharmaceutical service providers, each pharmaceutical service provider having the option of responding to the bidding service provider with amended bids that include at least one of new, lower prices and ancillary services in competition with the other pharmaceutical service providers to entice the customer to select their bid;

providing the customer with the details of the lowest bid of each responding pharmaceutical service provider that made at least one bid; and

,

allowing the customer to select the winning bid.

69. The method of claim 68 wherein the customer may select the winning bid at any time during the reverse auction.

70. The method of claim 68, further comprising the step of setting a predetermined time limit to conclude the reverse auction.

71. The method of claim 68 wherein the customer has the option of selecting the winning bid prior to the conclusion of the predetermined time limit at any time during the reverse auction or selecting the winning bid following the conclusion of the predetermined time limit.

72. The method of claim 68, further comprising the step of notifying all responding Pharmaceutical service providers of the customer'"'"'s selection via the bidding service provider.

73. The method of claim 68, further comprising the step of providing a reservation number and key code to the customer and the same reservation number to responding pharmaceutical service provider with the winning bid.

74. The method of claim 68 wherein only pharmaceutical service providers within a specified service area and/or serving via mail order are allowed to bid.

75. The method of claim 68, wherein the request is provided electronically.

76. The method of claim 75, wherein the electronic transfer is via an intranet, the Internet, or a combination of both.

77. The method of claim 68, wherein the pharmaceutical service providers bid against each other by offering a lower price and/or ancillary services.

78. The method of claim 68, wherein the pharmaceutical service providers bid automatically based on predetermined parameters established by the pharmaceutical service provider.

79. The method of claim 68, further comprising the bidding service provider contacting a third party payer if prior authorization is required for the requested pharmaceutical cognitive services.

80. The method of claim 68 wherein the unfilled prescription information is transferred via electronic means.

81. A system for processing prescriptions;

the system comprising;

at least one first input/output device for a customer to submit customer information and information for at least one unfilled prescription and to receive information in connection with the unfilled prescription and similar products;

at least one second input/output device for communicating information in connection with the unfilled prescription and similar products to a registry comprising pre-qualified pharmacies and for the pre-qualified pharmacies to interactively and iteratively submit bids in connection with the unfilled prescription and similar products in a reverse auction; and

,

a processing unit programmed by a rules engine and coupled to a database, the processing unit being in electronic communication with the first input/output device and the second input/output device, the processing unit providing the customer with cost information for both the unfilled prescription and for any similar products, the cost information including a price, availability of any discount coupons, a co-pay for any third-party payer benefits, and a final cost to the customer,

the customer comparing the cost information,

the customer selecting a prescription, the select prescription comprising the unfilled prescription or a select similar product,

the customer communicating the select prescription to the processing unit,

the prescriber modifying the unfilled prescription as needed to conform to the select prescription,

the processing unit communicating the modified unfilled prescription to the prequalified pharmacies for bids from the pre-qualified pharmacies,

each pre-qualified pharmacy receiving real-time feedback from the processing unit regarding the status and placement of their bids to fulfill the modified unfilled prescription in comparison to other pre-qualified pharmacies, each pre-qualified pharmacy having the option of responding to the processing unit with amended bids that include at least one of new, lower prices and ancillary services in competition with the other pre-qualified pharmacies to entice the customer to select their bid.

82. The system of claim 81, wherein the first input/output device is an interface to an intranet, the Internet or both.

83. The system of claim 81, wherein the second input/output device is an interface to an intranet, the Internet or both.

84. The system of claim 81, wherein the electronic communication is via an intranet, Internet or both.

85. The system of claim 81, wherein the unfilled prescription further includes a request for a similar product price comparison to identify alternative medications that are similar products to the prescribed drug and to determine costs for such identified similar products, alternative medications, the comparison being carried out by the processing unit.

86. The system of claim 81, wherein the pharmacies bid automatically based on predetermined parameters established by the pharmacies and incorporated into the rules engine.