SOURCE: Cutting Edge Information

Cutting Edge Information

March 10, 2015 09:30 ET

Pharmaceutical Companies Should Leverage Multiple Sources to Calculate Accurate Fair-Market Value for Clinical Investigators

RESEARCH TRIANGLE PARK, NC--(Marketwired - March 10, 2015) - In response to today's heightened government scrutiny, life sciences companies are formalizing the payment processes for services rendered by healthcare providers and key opinion leaders (KOLs). According to a recent report by pharmaceutical intelligence firm Cutting Edge Information, companies are meeting today's transparency requirements and preparing for future legislation by leveraging fair-market value (FMV) data to develop standardized payment rate cards.

Companies previously relied on internal experience to determine payments for services like speeches, manuscripts and clinical trials. In the past, KOLs often dictated their own fees. Now, however, companies must now consider a combination of factors including historic physician payments, current industry benchmarks and details found in trial protocols.

According to Ryan McGuire, report author and Head of Research at Cutting Edge Information, companies should not try to create a single, universal payment that is appropriate for all clinical trials. "All the trial managers interviewed for our report agree that physician payments should be tailored to each individual trial protocol," he said. "True FMV is a product of work completed -- investigators should be compensated differently for each of the different types of patient visits within the same trial."

"Clinical Investigator FMV and Compensation Benchmarks Structuring Contracts and Planning Investigator Meetings," available at http://www.cuttingedgeinfo.com/research/clinical-development/investigator-compensation/, examines payment structures and processes surrounding clinical investigator compensation. It explores popular strategies and tactics used to pay investigators, as well as the different ways that companies contract with investigators. The report also examines common milestone payments, the number of payments made to clinical investigators and the ranges and averages of direct costs that investigators often pass through to sponsors.

The study provides a valuable resource for clinical development managers, directors and vice presidents to stay informed on the latest trends around determining clinical investigator FMV. This report will also help executives:

  • Build comprehensive clinical trial budgets
  • Determine FMV calculation processes to develop defensible compensation rates
  • Structure investigator contracts
  • Plan for likely pass-through/direct costs from clinical trial sites
  • Plan and prepare for upcoming investigator meetings

For more information on Cutting Edge Information's pharmaceutical clinical investigator research and FMV services, please visit www.cuttingedgeinfo.com

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