SOURCE: Cutting Edge Information

Cutting Edge Information

November 10, 2016 08:17 ET

Compensation Caps for Consulting HCPs Continues on an Upward Trend

RESEARCH TRIANGLE PARK, NC--(Marketwired - November 10, 2016) - New research into payments to healthcare providers (HCPs) by the pharmaceutical industry found that since 2009, the percentage of drug companies that sets annual compensation caps has increased. Even though it is not an industry standard policy to set compensation caps for consulting with HCPs, the practice continues to trend upward.

According to the research, Developing and Maintaining Annual Compensation Caps for HCPS, published by pharmaceutical business intelligence firm Cutting Edge Information, only 38% of surveyed pharma firms reported establishing compensation caps in 2009 and 2011. However, this amount increased 10 percentage points (48%) by 2013 and by 2015, almost half of the study (49%) participants claimed to be practicing this method.

"Even though the data do not show an exponential growth trend, many more companies implement caps now than in the past," said Jacob Presson, senior consultant at Cutting Edge Information. "Certainly, the trend signifies the continual move by life sciences companies to combat the perception that they buy professionals' support. Likewise, the public reporting of physician compensation is some countries motivates companies to ensure that none of their payments stand out among the crowd."

Interestingly, in Cutting Edge Information's analysis of 2016 HCP payment data, 55% of large companies maintain compensation caps, showing a higher propensity for the practice. With more countries moving to implement fair market value (FMV) requirements and transparent reporting of HCP compensation, it is predicted that compensation cap policies will also continue to increase across the industry.

The principles, trend analysis and benchmarks outlined in Developing and Maintaining Annual Compensation Caps for HCPS will improve drug companies' approaches to setting compensation limits. The research, available at, details benchmarks for annual compensation limits for HCPs, both commercial and clinical caps and factors that companies use to determine annual compensation caps and policies. The research is designed to help life science executives:

  • Explore how companies manage annual compensation caps
  • Monitoring the hourly rate of KOL compensation
  • Maintain successful and appropriate annual compensation cap policies

For more information about Cutting Edge Information's KOL compensation and fair market value services, visit

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