Aggregate Spending Limits: Developing and Maintaining Annual Compensation Caps for HCPs


By limiting the aggregate spending they allocate to individual thought leaders, drug and device companies add extra layers of compliance protection to their organizations. The benchmark metrics in this analysis are designed to optimize your key opinion leader (KOL) annual compensation while remaining at fair market value (FMV).  Use the data in this analysis to place annual compensation caps in place and limit your life sciences’ company’s exposure to regulatory audits and added scrutiny.

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Actionable Recommendations on Maintaining Appropriate KOL Aggregate Spending Policies:

HCP compensation requires a delicate balance, as drug and device companies must not only comply with government regulations, but also avoid the perception of “buying” HCPs’ support.  One way that companies avoid this perception is by setting compensation limits, which serve as a means to ensure that no single HCP receives exorbitant compensation for performing services in a given year.  With the intense government, media and public scrutiny on physician payments by the drug and device industries, companies use these limits as one more avenue to avoid the appearance of “purchasing” HCPs’ opinions.

Aggregate Spending Limit Data:

  1. Percentage of companies with single annual compensation caps split by activity types
  2. Factors in determining annual compensation limit policies
  3. Functions involved in approving exceptions to spending policies
  4. Percentage of annual compensation cap exceptions granted
  5. Percentage of contracted HCPs whose spending levels exceeded predetermined compensation caps

Cutting Edge Information collected data from more than 70 life sciences companies to develop this aggregate spending analysis.  Our clients use the data and insights contained in this research to inform their decision making around thought leader compensation cap policy.

You may also be interested in FMVConnect: The Premier Global HCP Fair Market Value Benchmarking Solution.

Key Questions that Developing and Maintaining Annual Compensation Caps for HCPs Answers:

  • What does a compliant HCP annual compensation cap policy look like?
  • What levels of aggregate spending or annual compensation cap do other life sciences companies set for working with their thought leaders?
  • How do companies implement annual compensation policies that factor in exceptions?
  • What percentage of companies have aggregate spending limits in place when compensating thought leaders?
  • What activities fall under other companies’ aggregate spending policies? Do annual compensation caps only cover promotional speaker programs?
  • What technology or software do companies use to track annual HCP compensation?  Are these systems proprietary or off-the-shelf solutions?

Price $9,995
Publication Date  2016
Pages  35
Metrics  150 +
Charts / Graphics  32