navigating in a changing landscape top 6 challenges for thought leader development teams
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Slides from Cutting Edge Information\'s first webinar on the Top 6 Challenges facing thought leader development teams. First delivered in July 2009.TRANSCRIPT
Navigating in a Changing Landscape
The Top 6 Challenges for Thought Leader Development Teams
1000 Park Forty Plaza, Suite 440 Durham, NC 27701 www.cuttingedgeinfo.com
Presented by:
Elio EvangelistaResearch Manager
About Cutting Edge Information
Focus on conducting high-quality, implementable real-company consulting and training for the pharmaceutical
industry.
Founded by consultants with extensive experience
conducting pharmaceutical research studies for high-level
clients.
Services include:
• Research reports for decision support
• Customized research
• Capabilities assessments
• Executive presentations
Founded in 2002 to provide benchmarking and competitive
intelligence services
Our History with KOL Research
Key opinion leader development benchmarking and analysis
has been a cornerstone of our research library since Cutting
Edge Information’s earliest days:
Relationship management
Topics covered:
Identification and segmentation
Compensation
KOL targeting
Department resources
Strategy development
Conflicts of Interest
Major events affecting Pharma’s relationship with opinion
leaders:
State reporting laws
The Sunshine Act
New PhRMA code
ACCME policy changes
Journal publication requirements
Fair-market value compensation
Fewer KOLs Available
Academic institution restrictions
Thought Leader Fair-Market Value KOL Relationship Management
Our Recent Studies
The Top 6 Challenges
Greater Transparency1
The Shrinking KOL Pool6
Establishing Fair-Market Value Procedures2
State Disclosure Laws 3
Stringent Journal Requirements4
ACCME Restrictions5
Challenge 1: Greater Transparency
All meetings with consultants relate to the
consulting services outlined in the contract
The following factors support the existence of a bona fide
consulting arrangement (not all factors may be relevant to any
particular arrangement):
A written contract of the consulting services and basis for
payment
A legitimate need for the consulting services identified in
advance
Consultants meet pre-existing criteria and have the
necessary expertise
A reasonable number or healthcare professionals retained
The company maintains records of the services rendered
Challenge 1: Greater Transparency
New compensation strategies are the next step for the
industry.
Greater reliance on fee schedules
Integrated compensation approach
Public disclosures
Physician spend tracking
Challenge 1: Greater Transparency
No more gifting
Challenge 2: Establishing FMV Procedures
“We are under the
microscope right now as an
industry.”
- Interviewed Thought Leader
Management Executive
Incorporate these steps in your FMV process:
Work with your compliance team
Start with annual salary data
Gather FMV benchmarks
Incorporate qualitative research to add context to FMV data
Develop a codified fee schedule
Tie fee schedules to segmentation data
Challenge 2: Establishing FMV Procedures
Gathering FMV benchmarks:
• 300+ data tables of FMV benchmarks
• 19 therapeutic areas
• Fair market value compensation for:
• Expert-in-Field
• Specialist
• Subspecialist
• Surgeon
• Primary Care Physician
• Allied Health Professional
• Family/General Practitioner
• Physician Assistant
• Internal Medicine
• Nurse
• Nurse Practitioner
• OB/GYN
• Pediatrician
• Certified Diabetes Educator
• Dietician
• Professional Healthcare Educator
• Social Worker
Challenge 2: Establishing FMV Procedures
Annual salary data:
Specialty Starting† All Physicians† Hourly Rate*
Cardiology $270,700 $379,975 $104 to $146
Dermatology $230,000 $344,847 $88 to $133
Endocrinology $160,000 $205,497 $62 to $79
Gastroenterology $270,000 $374,674 $104 to $144
Neurology $395,000 $581,258 $113 to $224
Urology $250,450 $383,029 $96 to $147
†Source: American Medical Group Association (AMGA)
* - Based on a 50-hour work week
Challenge 2: Establishing FMV Procedures
Challenge 2: Establishing FMV Procedures
Annual salary data vs. FMV benchmarks:
Specialty Hourly Rate* Median FMV Hourly Rate
Cardiology $104 to $146 $217
Dermatology $88 to $133 $235
Endocrinology $62 to $79 $263
Gastroenterology $104 to $144 $316
Neurology $113 to $224 $254
Urology $96 to $147 $228
Influential factors for segmenting thought leaders:
Challenge 2: Establishing FMV Procedures
Challenge 3: State Disclosure Laws
States with laws regulating physician spending
States that have proposed laws on physician disclosures
Challenge 3: State Disclosure Laws
The impact on thought leader compensation:
$343
$472 $441
$364 $381
$395
$271 $276 $310
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
Large Mid-Sized Small
2006
2007
2008
Company Size
Ave
rag
e H
ou
rly
Ra
te
Companies are avoiding thought leader relationships
with physicians in states with complex spend tracking
laws.
Many pharmaceutical and biotechnology companies
now support passage of the federal Physician
Payments Sunshine Act, introduced by US Senators Charles Grassley and Herbert Kohl.
The rash of state regulations has prompted some common
responses:
Monitoring changes in these states’ laws has created a
burden of extra work at pharmaceutical companies.
Challenge 3: State Disclosure Laws
The impact on thought leader management teams:
State disclosure laws have not had a great
impact on KOL relationships … yet
State disclosure laws have led to better
documentation systems
Challenge 3: State Disclosure Laws
Challenge 4: Stringent Journal Requirements
“For industry-sponsored studies, an analysis of the data
(based on the entire raw data set and evaluation of the
study protocol, and prespecified plan for data analysis)
must be conducted by an independent statistician at an
academic institution, rather than by statisticians employed
by the sponsor or by a commercial contract research
organization.”
- JAMA Instructions for Authors
Challenge 5: ACCME Restrictions
Standards to Ensure Independence in CME Activities:
The provider must be able to show that everyone who is in a position to control the content of an education
activity has disclosed all relevant financial
relationships with any commercial interest to the
provider.
2.1
Presentations must give a balanced view of
therapeutic options. Use of generic names will
contribute to this impartiality.
5.2
The provider must make all decisions regarding the
disposition and disbursement of commercial support.3.1
Challenge 6: The Shrinking KOL Pool
Challenge 6: The Shrinking KOL Pool
2029
1502
0
500
1000
1500
2000
2500
2007 2008
Average Number of Thought Leader Relationships at Large Companies
Provide top-notch opportunities
Challenge 6: The Shrinking KOL Pool
Research
Innovation
Exposure
Development
1000 Park Forty Plaza, Suite 440
Durham, NC 27701
www.cuttingedgeinfo.com
Presented by:
Elio Evangelista
Research ManagerCutting Edge [email protected]. +1 919.403.6583