Case Study

Verity Solutions Group, Inc.


For almost fifteen years, Verity Solutions has been providing solutions for the federal government’s 340B drug discount program. The 340B Drug Pricing Program requires drug manufacturers to provide outpatient drugs to eligible health care organizations and covered entities at significantly reduced prices.

The company serves hospitals that are eligible for the program and their retail pharmacy partners. Discounts are offered to the in-house hospital pharmacies that provide a level of indigent care services to those who are underinsured. The Verity Solutions software manages drug purchasing and optimizes the discount available under the 340B program while maintaining program compliance. It also provides services to customers before and during program audits.

“We have to maintain compliance within a complex and sometimes ambiguous set of rules, while at the same time maximizing the economic benefit of participating in the program,” says Mark Cassidy, Chief Technology Officer, Verity Solutions. “We also have to manage audits and are proud to say that we’ve had a perfect audit record thus far. None of our customers who have undergone audits have ever had any adverse findings.”

The Challenge

Initially, Verity Solutions deployed its software on customer-owned equipment running inside customer networks. When cloud-based options became viable, it saw an opportunity to simplify hosting of its software.

The company started with Amazon Web Services (AWS), but soon discovered that AWS took too many people, procedures, and technology resources to maintain and update. AWS also was not HITRUST certified and did not have specialized healthcare expertise in securing protected health information (PHI) or supporting HIPAA compliance.

“AWS didn’t provide any special support for HIPAA compliance, and while there’s lots of good technical documentation, person-to-person technical support is limited,” says Cassidy. “This ‘DIY’ approach ended up being more costly than we expected, and we were still not offloading any portion of our compliance risks to experts in the fields of healthcare privacy and security”

The Solution

In addition to a robust, scalable infrastructure, and proven low total cost of ownership (TCO). Verity Solutions was looking for a partner with superb healthcare compliance and security expertise and support that would be highly responsive and readily available as needed. ClearDATA met all criteria.

“With AWS, navigating service catalog documentation was challenging—it’s largely self-service,” says Cassidy. “With ClearDATA, we get subject matter experts to support us. We can ask questions and get help. It’s a huge factor in reducing TCO time and dollars to get it done. After all, time translates to money.”

The Results

By working with ClearDATA, Verity Solutions doesn’t have to expend resources to maintain an in-house infrastructure, nor spend time and money maintaining an AWS infrastructure. Costs are lower, because fewer internal resources are needed. Since partnering with ClearDATA, Verity Solutions software has been running reliably and securely on ClearDATA’s cloud-based infrastructure.

ClearDATA is also managing many of Verity Solution’s compliance risks, and even going above and beyond to satisfy customers’ requests for additional security. “ClearDATA’s HITRUST certification has enabled us to clear IT security requirements our customers have placed on us,” says Cassidy. “So in some ways, ClearDATA is even helping us win more business. But the most important thing is that we get a high-touch team who are healthcare security and compliance experts so we can focus on our core business.”