RESEARCH TRIANGLE PARK, NC--(Marketwired - June 02, 2016) - Implementing a standardized travel policy is the primary practice that allows pharmaceutical companies to meet their compliance goals. Overall, 81% of surveyed companies with a standard policy for travel indicated that they meet or almost meet all of their compliance goals, according to primary research on HCP travel policies by business intelligence provider Cutting Edge Information.
Regulations dictate that life science companies must adhere to fair market value (FMV) when compensating healthcare providers (HCPs) to carry out activities on their behalf. So too should the compensation and reimbursement for any travel involved to carry out these tasks.
Companies that implement a standardized travel policy ensure consistency among their businesses. There is no unfairness between key opinion leaders (KOLs') available options when traveling for work. Using a standardized policy is a more effective choice than trying to work case by case. Drug manufacturers are much more likely to encounter inconsistency in travel compensation HCPs when they operate on a case by case basis. When inconsistency occurs, one party always benefits against another, therefore satisfaction rates decline and companies risk meeting compliance goals.
Another example of inconsistency that leads to less satisfaction is whether or not companies treat higher ranked HCPs to better travel arrangements. For hotel bookings, 77% of companies that do not differentiate between HCP tiers meet their compliance goals or are close to doing so.
"Satisfaction rates boil down to consistency among all HCPs' treatment during travel," said Jacob Presson, senior research analyst at Cutting Edge Information. "When travel managers treat everyone to the same travel practices, there is no room for dissatisfaction."
Internationally, only 32% of companies that distinguish between HCP levels meet all of their compliance goals. Conversely, 47% of companies that do not distinguish by level -- or tier -- reach all of their compliance goals and are therefore 45% more likely to do so.
Cutting Edge Information published its travel policy survey findings in Travel Policy Compliance for Engaging with HCPs, available at https://www.cuttingedgeinfo.com/research/other/travel-policy-compliance-engaging-hcps/, captures key aspects of HCP travel policies about rates paid for travel time, hotel accommodations, airfare allowances and acclimation time. The results of this research are presented in this deliverable. Clients can use these data and insights to inform their decision-making around thought leader travel policies. Some of the highlights included are:
For more information about Cutting Edge Information's travel policy compliance benchmarking data, visit www.cuttingedgeinfo.com. To learn more about fair market value rates for HCPs, visit www.fmvconnect.com.
Senior Director of Commercialization
Cutting Edge Information