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The Case for Change

Consolidation and changes in decision making among health care providers and its effect on the biopharma commercial model


The health care landscape is expected to evolve over the next decade with significant changes expected in the near term. Changes to the traditional model of health care delivery and reimbursement—as evidenced by the use of CPOE systems, the emergence of ACOs and several other trends—are already well underway and will likely result in a new model of consolidated clinical decision making where influence is concentrated among a select group of stakeholders. As a result the effectiveness of the traditional reach-and-frequency field model which biopharma companies have used over the last several decades is likely to diminish in the near to medium term. Implementing a new customer facing commercial model can allow biopharma companies to meet the challenges brought about by Health care Reform and improve the efficiency of their sales force.

Over the past few years, several pharmaceutical companies have launched pilot initiatives in an effort to move towards a customer facing selling model. However, no company has cracked the code to date. An effective transition to this new commercial model will of course require consideration of time and investment on the part of biopharma companies. In addition, it is important that efforts are driven from the top down in order to institutionalize the model throughout the organization and accompanied by a broad change management plan to support this transformation. Given the magnitude of changes in the health care landscape, biopharma companies that are able to fully understand the implications of these changes and adapt in a timely manner are likely to be effective in the future.

Download the attached PDF to find out about changes to the health care landscape and implications for biopharma companies.

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