From speaking engagements to advisory board leadership, healthcare practitioners (HCPs) provide an invaluable resource for pharmaceutical, biopharmaceutical and device companies alike. However, life science teams may struggle to develop fair market value (FMV) compensation rates for the important contributions that these HCPs and other medical professionals provide. Essentially, life science teams must balance competitive remuneration rates while also adhering to regulatory stipulations and avoiding the undue perception that they have bought HCPs’ support.
Pharmaceutical and biotechnologies are becoming increasingly strict with their physician compensation practices. Because more and more countries are implementing open payment legislations, life sciences firms must be prepared to develop and implement physician fair market value practices. These standardized payment methodologies ensure that the company offers its thought leaders the best fit compensation for their level of expertise and their contributions to the company’s research or promotional efforts.
More and more countries are implementing open payment legislation, similar to the US Physician Payment Sunshine Act. With these laws in place, pharmaceutical, biotechnology and medical device firms must be careful of how they are working with and compensating their key opinion leaders. These firms must standardize their thought leader compensation practices to avoid regulatory scrutiny and hefty fines.
Standardizing your global fair market value (FMV) methodology was the underlying theme at the 3rd Annual FMV of HCP and Investigator Payments conference in Philadelphia on May 9-10, 2016. What we at Cutting Edge Information are seeing right now is that many life science companies have different FMV methodologies for different countries. As more and more countries develop their own version of the US Open Payments Act, it is becoming increasingly important to remain consistent in your global methodology. Continue reading
Pressure on groups working with HCPs and other thought leaders has increased over the past five years with the rise of the Sunshine Act in the US and increased regulatory scrutiny around the world. CEI has conducted extensive research on how companies should compensate thought leaders and what represents fair market value in the current healthcare landscape. We are going to be leading a webinar on Thursday, May 19th at 2:00pm Eastern time to discuss a range of topics associated with KOL engagement by pharmaceutical companies. Continue reading
In light of the Sunshine Act and the restrictions that are being placed on the pharmaceutical industry, there is much more scrutiny placed on these companies for overcompensating key opinion leaders for business and travel. Some life sciences companies are starting to adopt policies that highlight exactly how KOLs may be compensated and by how much and/or to what degree. Of these policies, most pharmaceutical companies provide a very vague overview explaining that travel provided to thought leaders must be reasonable and not excessive (i.e. below first class ticket). Continue reading
It’s a common question at conferences, business meetings and even on social media: What key performance indicators (KPIs) should medical science liaisons (MSLs) track to prove value? When I ask medical affairs executives this question, I get a variety of answers, but they usually begin in the same way – with a sigh and “that’s a good question.” Through all of this muddle, however, some MSL teams have devised satisfactory methods to prove their worth to upper management. Continue reading
When determining a thought leader’s fair market value, life sciences companies must first consider a physician’s scope of influence. This determination is often influenced by a key opinion leader’s years of experience, their number of scientific publications or their career history. These factors contribute to companies’ KOL segmentation practices, which are key to determining physician FMV. Continue reading
With 2016 off to a start, it’s time to take a look at the increasing number of countries requiring life science teams to publicly disclose any payments provided to either physicians or healthcare organizations. The European Federation of Pharmaceutical Industries and Associations (EFPIA) mandated countries with member associations to adopt its code on disclosing payments made to healthcare professionals and organizations no later than December 31, 2013. However, the EFPIA value disclosures did not require member companies to begin collecting payment information until 2015. Life science companies that are EFPIA members began documenting transfers of value as of the first of the year and are set to disclose these payments no later than June 30, 2016. Continue reading
Determining physician fair market value (FMV) payments for speeches, advisory boards or consulting can be at best a minor effort and at worst a major compliance headache. FMV rates will vary by the speaker’s country, tier, type of activity and therapeutic area, meaning that teams may have to evaluate different rates for each individual speaker working at a given event. Life sciences companies can turn to Cutting Edge Information to make FMV evaluations as painless as possible. Continue reading