SOURCE: Cutting Edge Information

Cutting Edge Information

November 24, 2014 08:47 ET

80% of Pharma Companies Outsource Some Portion of Their Government Reimbursement Budgets

Third-Party Vendors Provide Valuable Insight for Maintaining Compliance

RESEARCH TRIANGLE PARK, NC--(Marketwired - November 24, 2014) - Cutting Edge Information, a pharmaceutical business intelligence provider, reported that 80% of surveyed companies outsource some portion of their government reimbursement budgets, including third-party audits that can help companies remain compliant to changing industry guidelines. 

In a recent survey conducted by Cutting Edge Information, advisors indicated that many companies are either unaware of or ignore government pricing and other trade policy guidelines set forth by the Office of Inspector General (OIG), which are often priority areas for government agencies. 

"The Affordable Care Act has served as a catalyst for change in the pharmaceutical industry. The new guidelines, however, can be confusing and it is therefore imperative that companies take appropriate steps to ensure that they are government compliant," said Jacob Presson, Senior Research Analyst at Cutting Edge Information. "An OIG compliance audit from a third-party advisor can mitigate the risk of trouble with the US Department of Justice."

Companies outsource up to a quarter of their government reimbursement budgets on a variety of activities, including customer relationship management, price model-building, and auditing. The type of outsourced activity will vary depending on the size and needs of a company, but according to one interviewed executive, third-party vendors "touch the entire food chain from reps to CEO." 

Cutting Edge Information's newest market access report, "US Government Drug Reimbursement: Winning Key Formulary Positions and Managing Pricing Systems," provides a roadmap for better navigating government reimbursement amidst the growing influence of the Affordable Care Act. The report focuses exclusively on US government reimbursement strategy and trends, draws on quantitative and qualitative data from top-performing life science executives to provide actionable insights for winning and maintaining formulary position. Additional guidance outlined in the report includes:

  • Anticipating your government payer needs and developing strong market access strategies;
  • Managing payer relationships before and after product launches to maintain formulary position; and
  • Understanding compliant government reimbursement practices in the United States' new healthcare environment. 

To learn more about Cutting Edge Information and its research report offerings, please visit http://cuttingedgeinfo.com/.

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