Maximize Your Managed-Care Relationships and the Return on Your Investments
Managed care today has a profound impact on pharmaceutical and medical product companies’ success. Manufacturers are spending $40 billion annually on managed care rebates and for any individual company, the annual spend on rebating far exceeds the total spend on sales and marketing combined.
The latest trends indicate that the power wielded by payers will only continue to increase: payers are taking bigger rebates and employing utilization management techniques more frequently with both physicians and patients. Only one out of 10 drug launches are successful today – mostly due to the restrictions imposed by managed care. Given these market dynamics, pharmaceutical manufacturers are examining their investments with utmost scrutiny:
- Are the current contracts profitable?
- Which areas would benefit most from greater access – and what would be the cost implications?
- What type of value proposition would help us win access?
- How should our sales and marketing investments complement or supplement our contracting efforts?