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Policies,Administrative,UWHC,Department Specific,Pharmacy,Administration

Handling of Check Payments for UWHC Transactions (1.16)

Handling of Check Payments for UWHC Transactions (1.16) - Policies, Administrative, UWHC, Department Specific, Pharmacy, Administration

1.16








Effective Date:

September 2012



Operations Manual
 Policy and Procedure Manual

Section: Pharmacy Administration

Policy #: 1.16:


Original
 Revision 8/16

Page:
1 of 2

Title: Handling of Check Payments for UWHC
Transactions


I. PURPOSE: To ensure that checks to UWHC Pharmacy Department are processed using
procedures consistent with organizational standards that ensure application of amounts are
appropriate by cost center and expense class, and that safeguard the payment.


II. PROCEDURE

1. Vendors and business associates will be encouraged to forward payments directly to the
UWHC Pharmacy lock box at the following address:
UW Hospital and Clinics Authority
PO Box 380
Milwaukee, WI 53278-0380
2. Vendors and business associates do send checks to the individual pharmacy
management staff, pharmacy office staff, and the pharmacy purchasing staff. Checks
received in these areas will be handled as outlined below.
3. Checks received by Pharmacy Lock Box 380
i. Cashiering Office will apply these payments to the pharmacy Redbook account
485000.
ii. Pharmacy Reimbursement staff will ensure appropriate application to receivable
balances based upon electronic or paper remittances from payor.
iii. Checks unrelated to retail pharmacy claims payment will be researched by
Pharmacy Reimbursement staff and request for adjusting entries will be sent to
UWHC Cashiering department.
iv. Supporting documentation for adjusting entries will be forwarded to cashiering
department as well as to the appropriate person in the department where the
funds should be allocated.
1. Examples:
a. Pharmaceutical Rebates applied to cost center of account with
rebated purchases and expense class 571100.
b. Checks for services provided by UWHC Pharmacy applied to
cost center and expense class as directed by appropriate
program manager (Hospice, Dane Count, etc…).
v. Pharmacy Reimbursement staff manages balance in account 48500 so that
minimal amounts are unallocated.
4. Checks received by pharmacy staff
i. Pharmacy staff who receive checks from vendors and business associates will
forward payments to the Pharmacy Budget Analyst indicating cost center and
expense class for the deposit of the check..
ii. The Pharmacy Budget Analyst will prepare a memo and assemble supporting
documentation outlining the reason for payment and the cost center and expense
class that payment is to be applied is prepared.
iii. A copy of memo, supporting documentation, and check is made and kept on file.
iv. Memo, supporting documentation, and check are taken to the Outpatient
Pharmacy and added to the bank bag.
v. The Cashiering Office will deposit and apply the check as outlined in the memo.
5. Checks received by Pharmacy Purchasing Coordinator








Effective Date:

September 2012



Operations Manual
 Policy and Procedure Manual

Section: Pharmacy Administration

Policy #: 1.16:


Original
 Revision 8/16

Page:
2 of 2

Title: Handling of Check Payments for UWHC
Transactions

i. A memo and supporting documentation is prepared outlining the reason for
payment and the cost center and expense class that payment is to be applied is
prepared.
ii. A copy of memo, supporting documentation, and check is made and kept on file.
iii. Memo, supporting documentation, and check are taken to the UWHC Finance
Office (H5/803) for large amounts, given to Budget Analyst to take to the
Outpatient Pharmacy to be added to the bank bag, or taken directly to the
Outpatient Pharmacy to be added to the bank bag. The Cashiering Office will
deposit and apply the check as outlined in the memo.
iv. Pharmacy Purchasing Coordinator also documents all rebates on a spreadsheet
of expected rebate payments for follow up on late payments expected from
vendors.


III. COORDINATION:
1. AUTHORED BY: Pharmacy Manager, Business Operations
2. REVIEWED BY: Affected Staff, Pharmacy Management Team
3. COMMITTEE APPROVAL BY: None



Approved By:_______________________________
Director of Pharmacy

Date:__________