Driving Cost-Effectiveness in Pharma and Medical Device Pricing and Contracting

Contracting and pricing organizations in the medical device and pharmaceutical industries provide vital services within their companies. These groups support demand with large volume customers, provide analytical support to product and contract managers using pricing for strategic brand advantage, identify customers with potential for increasing sales or profitability, and provide valuable insights on the attractiveness of company brands to external customers. 

Despite these contributions, demonstrating value to internal customers is a tremendous challenge for these organizations. Contracting managers and executives facing this challenge can use the benchmarks in this presentation to:

• Evaluate organizational efficiency compared with others in the industry.
• Find out the most effective metrics or outcomes to use in communicating the value of contracting within the company.
• Learn what methods of communicating value are most effective

Insights revealed in this presentation will guide development of cost-effective contracting centers with metrics for cycle time, volume and complexity of work, staffing, training and pricing and payment accuracy. The document also looks at impacts of health care legislation on contracting groups as well as risk mitigation methods and contract automation.

Industries Profiled:
Pharmaceutical; Biotech; Medical Device; Manufacturing; Consumer Products; Diagnostic; Health Care


Companies Profiled:
Abbott Laboratories; Amgen; Baxter Healthcare; Bayer; Boehringer-Ingelheim; Genzyme; Johnson & Johnson Healthcare Systems; Pfizer; Philips Medical Systems; Roche

Study Snapshot

This research originated from a Best Practices, LLC consulting project. It was conducted for a pharmaceutical client and was based on interviews and surveys with contracting executives at 16 different pharmaceutical and medical device companies.

Key topics covered in this presentation include organizational structure, staffing levels and expertise, contract volume and cost, payment volume and type, contract accuracy, pricing validation methods, risk mitigation activities, services provided and communication effectiveness. It includes 39 data graphics, seven information graphics and over 100 metrics as well as executive quotes and narratives.

Sample Key Findings

High performing contracting organizations focus on corporate financial growth in their management processes, objectives and internal communications.

• Automation, standardization and early warning systems are key contracting value fronts by which to manage speed, cost and quality in an increasingly complex and high-volume contracting environment.

Table of Contents	Participating Companies
Sample Page 1	Sample Page 2

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