Report Summary: Reshaping Commercial Models to Serve ACOs, IDNs & Emerging Provider Networks: Benchmarking Report

STUDY OVERVIEW
BENCHMARK CLASS
STUDY SNAPSHOT
KEY FINDINGS
VIEW TOC AND LIST OF EXHIBITS

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Regulatory reforms and changes in market dynamics have spurred a shift away from independent clinics to highly influential healthcare provider networks like Accountable Care Organizations (ACOs) and Integrated Delivery Networks (IDNs).
As this occurs, pharmaceutical and medical device companies are trying to access, influence and support this rising customer segment, which accounts for a fast-rising share of total pharma business.
Best Practices, LLC undertook this benchmarking field research to assist pharmaceutical and medical device companies in developing an effective strategy for serving Accountable Care Organizations and Integrated Delivery Networks in the rapidly changing U.S. healthcare marketplace.
The completed study assesses the relative impact and priority of key practices as well as the failure points that influence overall ACO/IDN service performance. Leading insights in the study will enable sales and managed markets leaders to segment and target customer groups, staff and employ different engagement instruments over product lifecycles.

Industries Profiled:
Pharmaceutical; Diagnostic; Health Care; Medical Device; Biotech; Chemical

Companies Profiled:
Astellas; CardioDX; GSMS; Biocon; Smith & Nephew; Greer Laboratories; Myriad; CooperSurgical; Mist Pharmaceuticals; Orthofix; Centurion; Vivus; Purdue Pharma; Mylan; Dexcom; Medtronic; Galderma; MedImmune; Genentech; Stryker; Novo Nordisk; Biotronik; Pfizer; GlaxoSmithKline ; Teva Pharmaceutical Industries Ltd; AstraZeneca; Amgen; Auxilium; B.Braun; Endo Pharmaceuticals

Study Snapshot

Best Practices, LLC engaged 36 leaders at 31 pharmaceutical and medical device companies through a benchmarking survey. Analysts also conducted in-depth executive interviews to develop qualitative findings and insights.�

Key Findings

1. The volume of business flowing through ACOs/IDNs is increasing sharply:

Sales through ACOs/IDNs are expected to increase by 50% for large companies and 136%
for small and medium sized (S/M) companies by 2016.
Nearly half the large companies and one-quarter of S/M expect ACOs/IDNs to account for
61%-100% of their business by 2016.

2. Internal communication and education on ACO/IDN segment is critical:

Timely communicating to internal stakeholders the significance of ACO/IDN rise is critical for biopharma success.
Depending on the importance of information, all communication channels employed for product launch can be used to communicate changes on ACOs/IDNs.

3. Companies are building new commercial capabilities to effectively serve networks:

Three-quarters of the larger companies are providing special training to Key Account Managers (KAMs) to prepare them to serve the ACO/IDN segment.

Table of Contents

EXECUTIVE SUMMARY
Research Overview ………………………………………………………………………….........4
Six Key Steps for Biopharmaceutical Companies .….…………………………...9
Key Findings & Insights…………………………………………………………………..…....11

DETAILED RESEARCH FINDINGS
Stakeholder Preparation………………………………………………………………........21
ACO/IDN Outlook…………………………………………………………………………..........22
Change Management ……….........................………………………………………..31
Resources & Organization………………………………………………………………......36
Sales Model Evolution…………………………………………………………...…....……...42
Commercial Capabilities ………………………………………………………………......46
Service Strategies………………………………………...……………………………….......53
Key Services & Activities…………………………………………………………………......54
Expanding Customer Access……………………………………………..…………...…..63
Outcomes Approach …………………………………………………………………….…....73
Current & Future Trends …………………………………………………………………....78
Lessons Learned …………………………………………………………………………......83
About the Benchmark Class ……………………………………………………………...86

List of Charts & Exhibits

Key Steps to Build an Effective ACO/IDN Strategy

Vision & Tactics Needed to Meet Challenges of Engaging ACOs/IDNs
Drivers of Market Change
Estimated Amount of Total Business Flowing through ACOs & IDNs by 2016
Percentage of Total Sales Coming from ACOs/IDNs by benchmark segment
Type of Delivery Networks Served by benchmarked companies
Current and Future trends observed in the number of FTEs dedicated to ACOs/IDNs
Dedicated ACO/IDN Service Staff Resources
Knowledge Sharing Channels in Use across Internal Functions serving ACOs/IDNs
Coordination Tools Employed to coordinate ACO/IDN resources across functions
Field-based Resources deployed to support ACOs/IDNs
Number of full time equivalent employees (FTEs) employed in ACO/IDN specialist roles
Average Distribution of ACO/IDN specialists
Effectiveness of the various criteria in determining the number of sales/education specialists dedicated to an ACO/IDN network
Impacts of New Business Model on Pharma: Pros & Cons of Change
Old Sales Model vs. New Sales Model
Client Types served by ACO/IDN Sales Specialists
Staff Educational Background
Preparation and training provided to KAMs supporting ACO/IDN clients
Clinical Sales Specialists Fit
Top areas where ACO/IDN Specialists have had the greatest positive impact
Value Analysis Process
Importance of the types of data and materials used by ACO/IDN specialists in the field
Most effective/ valued services provided to ACO/IDN partners
Highly effective Services at different Product Lifecycle Phases
Action Plan for Mapping ACO Landscape
Effectiveness of Approaches for Understanding Care Delivery Models
ACO/IDN Segmentation and Customer Classification
Portfolio Diversity Impact on Access to ACOs & IDNs
Effectiveness of Approaches for Identifying Decision Makers
Frequency of Access to ACO/IDN Stakeholders
Best ways to partner with ACOs/IDNs to influence payers
Types of Outcomes Research Most Valued by ACOs/IDNs
Future ACO/IDN Concerns
Steps for Adjusting to Transparent Pricing
Lessons Learned in Using ACO/IDN Specialists

Report Summary: Reshaping Commercial Models to Serve ACOs, IDNs & Emerging Provider Networks

ID: PSM-314A

Pages: 18

Published: Pre-2018

Delivery Format: Online

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