Blog · Forecast and pipeline · Healthcare and med-tech
How a medical supplies company builds a contract expiry calendar from its agreement register: GPO and system agreements by end date, the revenue and facilities under each, the agreement's utilisation, contracted categories actually bought, the tier the customer earned against the tier it is on, the agreements inside the renegotiation window with no activity logged, and the identity that revenue under agreements plus off-agreement revenue equals the ledger.
A medical supplies company's largest system agreement expires in nine months. The account manager knows the date. What nobody has on one page is the revenue under it, the facilities, which of the twelve contracted categories they actually buy, and that the system's volume earned a better tier a year ago. The agreement register and the ledger produce that page for every agreement. This guide sets out the expiry calendar, the utilisation and tier view, and the list.
Per agreement:
End date; renegotiation window start Revenue under the agreement, trailing year; facilities buying Utilisation = contracted categories with purchases ÷ contracted categories, and revenue per category Tier earned, from volume against the agreement's tier thresholds; tier on Activity logged inside the window
Per quarter: revenue and facilities under agreements expiring.
Facility and agreement identifiers only.
Σ revenue under agreements + off-agreement revenue = ledger revenue
Revenue on a facility mapped to an expired agreement fails and is listed; it is either an extension nobody recorded or an agreement running on without one.
| Quarter | Agreements expiring | Revenue under | Facilities | In window, no activity |
|---|---|---|---|---|
| Q1 | 3 | $2.1m | 14 | 1 |
| Q2 | 7 | $9.8m | 61 | 4 |
| Q3 | 2 | $0.9m | 6 | 0 |
| Agreement | Customer | Revenue | Facilities | Utilisation | Tier on | Tier earned | Activity in window | List |
|---|---|---|---|---|---|---|---|---|
| AG-2207 | System S-01 | $4.1m | 14 | 4 of 12 categories | 2 | 1 | None | Renegotiate now: tier gap, scope gap |
| AG-4471 | GPO G-03 | $3.2m | 38 | 10 of 11 | 1 | 1 | Yes | In progress |
| AG-9034 | System S-07 | $1.4m | 6 | 7 of 8 | 3 | 3 | None | Call |
Agreement 2207: four million dollars, fourteen hospitals, buying four of twelve contracted categories, on tier two with tier one's volume, nine months to expiry, nobody has logged a conversation. The system's supply chain team has noticed the tier already.
Expiry known; contents unknown. The date on a calendar, the utilisation nowhere.
Tier gap unmeasured. The customer raises it at renegotiation, or leaves.
Activity not logged against the agreement. The list cannot say who is working it.
Expired agreements running on. Revenue on terms nobody signed.
Mapped once, the agreement register, the ledger, the facility mapping and the activities produce the calendar, utilisation, tier gap and the list every month. Covirage builds this from the exports as they are. The healthcare page describes the setup, and the price compliance guide covers the tier errors that show up on invoice lines before the renegotiation.
GPO and system agreements are renegotiated months before expiry, often a year for large systems. The window is the agreement's own notice and renegotiation term from the register, and an agreement inside it with no logged activity is one the customer's supply chain team is already working with someone else.
Tiered agreements price by committed or achieved volume. A system that has grown into a higher tier's volume but is still priced on the lower one is overpaying and will find out; one on a tier it no longer earns is underpaying. Both are on the calendar, because both are the renegotiation.
Because an agreement covering twelve categories where the facilities buy four is renegotiated on four, and the other eight are either a compliance conversation or a scope to drop. The utilisation per category per agreement is the shape of the next agreement.