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TRH demo record · fictionalPrime Vendor AgreementActive

Pharmaceutical Prime Distribution Agreement

AGR-MK-001 · McKesson · Pharmacy Distribution

$2.8M
Annual value
Effective
2025-04-01
Expiration
2028-03-31
Notice date
2027-12-31
Term
35 mo
Total contract
$8.1M
Renewal
Auto-renew
Download contract (PDF)
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Contract document

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Parties

TRH demo record · fictional
Hospital (contracting party)
Texas Regional Hospital
Rural Texas · 50-bed PPS hospital · relationship owner P. Nwosu, Director of Pharmacy
Public company background · sourced
Vendor counterparty
McKesson Corporation
Pharmaceutical & medical-surgical distribution · 6555 State Highway 161, Irving, TX 75039

Renewal timeline

  1. Effective date
    Agreement commencement.
    2025-04-01
    Past
  2. Amendment executed
    Added specialty pharmacy line (+$150,000/yr).
    2025-10-01
    Past
  3. Notice deadline
    Last day to give non-renewal notice before evergreen renewal.
    2027-12-31
    Upcoming
  4. Expiration
    Auto-renews unless noticed.
    2028-03-31
    Upcoming

Extraction & review progress

Verified
5 of 5 terms resolved · 5 verified100%
Approved 0Flagged 0Rejected 0Pending 5

Risk flags

2
  • 1 obligation at risk
    Honor tiered quarterly rebate schedule
    medium
  • 3 linked exceptions
    3 open spend/revenue exception(s) totaling recoverable/avoidable value against this counterparty.
    medium

Extracted terms

Showing 5 of 5 terms
Contract value (annual)Rates & feeshigh confidence
$2,760,000
§4 Pricing · p.2
pending
TermDates & termhigh confidence
36 months
§10.1 Term · p.4
pending
Pricing basisRates & feeshigh confidence
WAC less contracted %
Exhibit A · p.5
pending
Rebate scheduleRates & feeshigh confidence
Tiered quarterly rebate
Exhibit C · p.9
pending
Notice windowDates & termhigh confidence
90 days before expiration
§10.3 · p.4
pending

Rates, fees & escalators

Annual value
$2.8M
Term length
35 months
Total contract
$8.1M
  • Contract value (annual): $2,760,000§4 Pricing
  • Pricing basis: WAC less contracted %Exhibit A
  • Rebate schedule: Tiered quarterly rebateExhibit C
Escalators / value changes
  • 2025-10-01 — Added specialty pharmacy line+$150,000/yr

SLAs & KPIs

Financial · 32%
Target: WAC − contracted % · Actual: 1 duplicate credit pending · AP vs. distribution invoice
At risk
Service · 22%
Target: ≥ 99% line fill · Actual: 99.1% line fill · Distribution report
Meeting
Contract Compliance · 20%
Target: Rebate schedule honored · Actual: 1 rebate variance · Rebate reconciliation
At risk
Responsiveness · 14%
Target: Same-day critical · Actual: Same-day met · Order log
Meeting
Risk & Documentation · 12%
Target: DSCSA + licensure · Actual: Current · Vendor risk file
At risk

Obligations

0 reviewed
  • Honor tiered quarterly rebate schedule
    Exhibit C · Quarterly
    At risk
  • Maintain DSCSA traceability documentation
    §7.1 · Ongoing
    On track
  • Same-day critical-drug fulfillment
    Exhibit B · Per order
    On track

Version history

  1. Original execution
    2025-04-01 — Pharmaceutical Prime Distribution Agreement executed.
  2. Amendment 1CurrentViewing
    2025-10-01 — Added specialty pharmacy line (+$150,000/yr)

Viewing Amendment 1 — demo toggle only; archive-don't-delete keeps every prior version intact.

Linked spend / revenue exceptions

$63K
  • Duplicate line
    Duplicate credit memo pending on returned specialty item.
    EX-1020 · In review
    $27,400
  • Missing credit
    Q3 tiered rebate variance vs. Exhibit C schedule.
    EX-1021 · Open
    $22,800
  • Over-rate line
    WAC-plus markup on one specialty NDC above contract.
    EX-1022 · Open
    $13,000