SOURCE: Cutting Edge Information

Cutting Edge Information

February 03, 2015 09:30 ET

Physician Fair Market Value for National-Level Specialist Key Opinion Leaders Is $321 per Hour

Companies Go Beyond Annual Salary to Determine Payment Schedules

RESEARCH TRIANGLE PARK, NC--(Marketwired - February 03, 2015) - The fair market value (FMV) for national-level specialist key opinion leaders (KOLs) around the globe is $321, according to a new report by pharmaceutical intelligence provider Cutting Edge Information. Methods for determining FMV rates have evolved: whereas hourly fees were formerly based largely on an individual's salary, life science companies now consider a variety of factors when determining payment schedules.

The majority of contracts between life science companies and KOLs involve specialists, who are highly valued for their undeniable expertise. A growing percentage of drug sales and research is dedicated to small-population indications, causing the need for specialists to sit on advisory boards and give educational presentations to their colleagues. To determine appropriate FMV rates for these specialists, companies are considering thought leader expertise, speaking and publishing frequency, specialty area and influence levels.

"Gone are the days of a decentralized FMV process when companies acted in silos to determine rates -- and often simply paid a KOL whatever he or she requested," said Shaylyn Pike, head of analytics and FMV at Cutting Edge Information. "Companies are responding to the Sunshine Act and other rate-based legislation with formalized processes that standardize rates based on a clear and defensible key opinion leader scoring system."

According to a new report called Global Key Opinion Leader Compensation 2015: CEI's Annual Review of Fair Market Value, average base hourly fair market value rates for specialists worldwide range between $190 for local-level specialist KOLs and $502 for KOLs with global influence.

Use Global Key Opinion Leader Compensation 2015, available at http://www.cuttingedgeinfo.com/research/medical-affairs/thought-leader-fmv-physician-fee-schedules/, to stay compliant and keep pace with the rapid, worldwide formalization of FMV processes and legislation, as well as to determine whether company FMV payments for specialists and non-MDs are defensible and clear. Other key questions answered by this report include:

  • What are the most relevant factors to consider when determining FMV compensation?
  • How do subspecialists fit into the FMV determination process?
  • What factors should companies take into account when formalizing their payments?
  • How is the US Sunshine Act influencing transparency requirements in other markets?

To learn about Cutting Edge Information's fair market value service, please visit http://www.cuttingedgeinfo.com/physician-fair-market-value/.

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