Companies’ Experiences with KOL Contract Negotiations Are Changing

Jacob Presson, pharmaceutical market access researcher
By Jacob Presson,
Data Product Team Leader

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


EFPIA Member Companies and Associations Prepare for Transfer of Value Disclosures in 2016

Sarah Ray, regulatory affairs and safety researcher
By Sarah Ray,
Senior Research Analyst

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


Effective Utilization of Key Opinion Leader Tiers

Jacob Presson, pharmaceutical market access researcher
By Jacob Presson,
Senior Research Analyst

Many pharmaceutical and life science companies have a three tier system in place for determining key opinion leaders’ fair market value.  Companies also typically have an “exceptional” tier for those that go beyond a tier 1 level of influence.  Among those participating in our research, almost 20% do not have rates or procedures in place for the exceptional tier, sticking with the 3 tiers, typically in order from tier 3 at the local level to tier 1 at the global level of influence.  Continue reading


Defining Appropriate Fair Market Value for Specific KOL Activities

Victoria Cavicchi, pharmaceutical social media researcher
By Victoria Cavicchi,
Senior Research Analyst

Collaboration with physicians and top thought leaders is key to many life sciences operations.  From speaker programs to clinical trials, key opinion leaders (KOL) take on critical tasks to help pharmaceutical and medical device companies develop the best possible products and educate the healthcare audience.  However, life sciences companies must take a number of factors into consideration when determining fair market value for specific KOL activities.  In addition to a doctor’s geography and sphere of influence, companies should also consider the type of tasks that they are asking KOLs to perform. Continue reading


Exploring Global FMV Trends to Set Physician Compensation Rates

Jacob Presson, pharmaceutical market access researcher
By Jacob Presson,
Senior Research Analyst

One of the biggest challenges when determining what constitutes physician fair market value (FMV) rates among healthcare providers is understanding the geographic differences that occur around the world.  While there will always be some variation between therapeutic areas and for different types of activities, there are some broad global FMV trends that we will explore here. Continue reading


Criteria for Establishing Fair Market Value Rates

Jacob Presson, pharmaceutical market access researcher
By Jacob Presson,
Senior Research Analyst

As companies begin to build documentation for fair market value rates, there are four main variables that they must take into account when establishing what rate is appropriate for a specific activity.  The primary criteria are the country, the activity, the tiering of the thought leader, and the specialist involved.  Successful application of FMV rates requires accounting for all four variables. Continue reading


Determining Physician Fair Market Value for Specialist Thought Leaders

Victoria Cavicchi, pharmaceutical social media researcher
By Victoria Cavicchi,
Senior Research Analyst

When determining physician fair market value, life sciences organizations must consider a number of factors, including the doctor’s specialty area, geography and level of expertise.  As firms work to determine fair market value and standardize rate cards, they must also decide physician segmentation criteria.  Many firms look to three-tier segmentation systems to distinguish KOL compensation.  Continue reading


How Are Pharma Companies Using the US Sunshine Act to Prepare for Other Transparency Regulations?

Victoria Cavicchi, pharmaceutical social media researcher
By Victoria Cavicchi,
Research Analyst

With the US Sunshine Act finalized in 2013, life sciences organizations are increasingly aware of how this mandate impacts their day-to-day activities.  Now with multiple years of practice with this regulation under their collective belts, companies are typically comfortable tracking their payments to physicians and teaching hospitals.  However, physician payment reporting does not end with the Sunshine Act. Continue reading


Physician Fair Market Value: The Value of Formal Rate Cards

Victoria Cavicchi, pharmaceutical social media researcher
By Victoria Cavicchi,
Research Analyst

The life sciences industry is seeing more and more transparency regarding physician payment.  The US Physician Payment Sunshine Act, requiring pharmaceutical companies to report all payments, was finalized in 2013.  Meanwhile, France has passed the Loi Bertrand, which imposes similar reporting requirements to the Sunshine Act; other companies, including Slovakia and Columbia, has followed suit. Still others are planning to implement their own payment reporting legislation.  To prepare for and adhere to these many companies look to formalized rate cards to standardize their payment processes. Continue reading


Changes to Sunshine Act Reporting Requirements Coming Soon?

Sarah Ray, regulatory affairs and safety researcher
By Sarah Ray,
Senior Research Analyst

The Medicare Payments Advisory Commission (MedPAC) is a 17-person-strong, independent agency that apprises Congress of issues affecting the US Medicare program.  Back in 2008, the group played an instrumental role in the formation of the Sunshine Act aspect of the Affordable Care Act (ACA).  Since then, the group continues to track Open Payments outcomes and propose recommendations to Congress.  Continue reading