Life Science Compliance Teams Are Hesitant to Approve HCP Compensation Beyond the Cap

85% of pharma teams ensure that no more than 1 out of every 20 HCPs receives compensation beyond the annual cap

RESEARCH TRIANGLE PARK, NC--(Marketwired - June 13, 2017) - Recent analysis of life science firms revealed that more pharmaceutical companies are instituting compensation limits as a response to scrutiny over their payments to healthcare providers (HCPs), according to pharmaceutical intelligence provider Cutting Edge Information.

Data published in the study, Developing and Maintaining Annual Compensation Caps for HCPs, reveal that approximately 85% of pharma compliance teams either do not exceed their HCP compensation caps or limit the practice to fewer than 5% of cases.

"Companies must not only comply with government regulations, but also avoid the perception of buying HCPs' support," said Jacob Presson, senior consultant at Cutting Edge Information. "By setting compensation caps, companies can avoid the appearance of 'purchasing' opinions of HCPs and ensure that no single HCP receives too much compensation for performing services in a given year."

The study found that among surveyed Top 10 and Top 50 pharmaceutical companies, only 2.2% of HCPs receive compensation beyond the set annual limit on average. For small pharma and biotech companies, only 5% of HCPs on average receive compensation exceeding the annual limit.

Additional data show how few HCPs receive compensation beyond companies' stated annual limits on a regional level. According to the study, only 1.9% of healthcare providers are compensated in excess of annual caps in the US. By comparison, just over 3% of healthcare providers are compensated beyond the cap in the European Union (EU) and emerging markets.

The principles and benchmarks outlined in Developing and Maintaining Annual Compensation Caps for HCPs will improve drug companies' approaches to setting compensation limits. The study, available at, details benchmarks for annual compensation limits for HCPs (both commercial and clinical caps), in addition to 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
  • Monitor 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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Contact Information:

Elio Evangelista
Senior Director, Commercialization
Cutting Edge Information

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