Premier Cost Recovery, Inc.

Premier Cost Recovery (PCR)

Improves clients’ internal payment processes within business units and across department lines, while transferring knowledge that positively impacts the bottom line.

PCR provides customized solutions that result in recoveries of overpayments, of money lost during business transactions, and reports additional efficiencies:

• Procurement Process Assessment / Workflow Analysis
• Strategic Audit
• Technology Services
• Data Conversion
• File Scrubbing
• Debit Balance Collection
• Training and Development

Premier Cost Recovery (PCR) works in a variety of industries across the U.S. but specializes in healthcare.

The PCR staff is the important difference. Our auditors all have extensive, diverse experience: real auditors with real experience in recovering lost profit at companies involved in manufacturing and distribution to healthcare.

Procurement Audit Process
PCR reviews all relevant transactions to discover potential inappropriate payments:

• Purchasing initiates the transaction
• Purchase Order is submitted to the Vendor / Supplier
• Goods and Services are received
• System communicates between Purchasing and Accounts Payable
(AP) / Disbursements Departments
• AP / Disbursements receives invoice from the Vendor
• Vendor / Supplier receives payment from AP / Disbursements

Audit Overview
Paid inventory, and supply/expense invoices will be verified for proper processing of all purchase orders and contract terms including:

• Item Costs
• Duplicate Payments
• Payment Terms
• Volume Rebates / Allowances
• Freight Charges
• Taxes
• Accounting Verification of Returned Items

Contingency Service Contract
PCR is committed to delivering comprehensive disbursement and contract compliance review services specific to each client’s unique requirements. PCR does not have any hidden costs and we agree to pay all direct expenses related to the engagement, specifically:

• All travel expenses incurred by our staff visiting a corporate office or
division locations for any reason.
• Costs associated with the retrieval and return of off-site files or source documents.
• Any outsourced services required for data extraction for the audit.
• All PCR reporting, including ad-hoc requests.

If there is no recovery, there is no cost to our client for our recovery services or reporting. Recovery is defined as:

• Debits approved by our clients’ suppliers and subsequently processed.
• Refund checks received from our clients’ suppliers.
• Accounting entries, offsets, or credits that reduce current or future liability
that were identified by PCR for our clients.

The Premier Cost Recovery Mission
To provide our clients with the most effective and thorough recovery audit. We believe that when our clients come first, profits will follow.

PCR completes sufficient documentation and submits it for approval. To conclude the audit, PCR provides a detailed report that identifies the major audit areas and opportunities for improving internal procurement controls.

Areas of Potential Recovery
Pricing – Evaluation of proper contractual payments towards purchase agreements and assessment of payment inconsistencies.

Duplicate Payments – Includes duplicate payments for goods or services and payment to incorrect vendors.

Cash Discounts – A review of the system’s default payment terms can determine if unique vendor terms have been properly entered.

Vendor Returns – Documentation is reviewed to establish whether client has received the proper credit for items returned to the vendor.

Rebates and Allowances – Contractual agreements are reviewed for vendor rebates and allowances.

Sales and Use Tax – Auditors evaluate both accruals and sales tax payments to determine the validity of these expenditures.

PCR’s Five Step Process
Process Assessment - A work flow analysis of the current procurement process and detailed audit plan are completed.

Data Acquisition – PCR provides a detailed list of predetermined file layouts, and assists in extracting data for auditing proposes.

Strategic Audit - Lasting efficiencies in procurement and payment processes that increase profits without external assistance are established.

Claims Administration – Our claims administration process ensures maximum economic benefit. Claims against current and non-current vendors are pursued.

Final Client Report - This document combines best practices and a detailed review of the major audit areas promoting internal processes improvement. Training for the staff involved in implementing our recommendations is included.