Biotech / Finance

Top 5 HC Reform Action Steps for Pharmaceuticals

From The Pharmaceutical Industry and Healthcare Reform
April 9, 2010 - 7:47am
Healthcare Reform has passed (as predicted here in January).  It's time for action.  Wait you say... many aspects of reform won't take place for several years.  While that's true, seizing opportunity in the wake of reform requires immediate attentive action.  Some of what's in the legislation will require careful analysis driving well constructed plans both of which will take some time to do well.  Other opportunities created by the legislation have a distinct first mover advantage.  Those who take action now will win the day.  Other aspects will demand years of hard work to accumulate a winning position.So let's have a look at my top five action steps pharmaceutical companies can and should take now to  take advantage of opportunities presented by Healthcare Reform.  Here they are in no particular order.  1) Get ready to add sales representatives in targeted areas in 2014 to capture more than your fair share of incremental volume.  As controversial as this thought might seem, consider this... healthcare reform means 35 million additional people will have coverage in 2014.  Most of them are young (under 65).  Some areas of the country will be adding 20\% to the population of covered lives.  Pharmaceutical companies with product lines geared to younger populations should start analysis and plans now to consider adding representatives in geographic specific areas to expand reach.  Companies thinking about adding reps but not wishing to add fixed costs might consider chatting with a favorite CSO about variable cost options.  (more here from an earlier blog!). Consider running pilots now to test promotional response.2) Ramp up comparative effectiveness studies.  Ever see a comparative effectiveness study from RAND or AHRQ?  Often the winner is the product which has not just favorable evidence but the most evidence. Classic first mover advantage.  These studies take time.  Start planning and investing in studies.  Pick your studies carefully though.  Running additional studies is not without risk.3) Design and pilot programs to help busy practitioners.  Your customers are overloaded already particularly primary care physicians.  Imagine when their practice volume increases by 10\% to 20\% in 2014.  Pharmaceutical companies who can help their b

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