Pharmaceutical Commerce - July/August 2011 - (Page 29)

Legal Regulatory Figure 2: How respondents plan to satisfy reporting requirements as more laws are enacted Manually with spreadsheets Internal software system Third-party solution Automated solution TBD Avoid promotional spend in state requiring disclosure Not satisfy them given to physicians must be reported to the Secretary of HHS as well. as standardized a format as possible. In an ideal world, every localized agg spend system would capture complete information relatWanted: A master agg spend database ed to HCP identity, dates, product, activity One of the most challenging aspects of type and purpose for every single payment or the Sunshine Spend law is that it will require transfer of value. But the world is rarely ideal. companies to integrate all such value transac- Rather, localized efforts often fail to capture tions across the entire enterprise—whether the required level of granularity or attributes the payments are made by individual busi- that are necessary to meet the current spend ness domains related to R&D, medical affairs, reporting requirements, says Polaris’ Carmel. manufacturing, others. The need to capture This creates a nightmare when it comes to and aggregate so much variable data aggregating enterprise-wide spend from so many difference sources is data. “The old adage of garbage in, creating a tall order for life sciences garbage out is extremely applicacompanies. ble to the agg spend environment. Having a robust master cusThe key to solving the dilemma is tomer data file to support agg spend to have comprehensive and stanreporting requirements — both state dardized spend-capture workflows. and federal — will be the linchpin This should be the focus across the of any successful compliance effort. Ben Carmel, Polaris entire organization,” he adds. “Building a good customer master Management Group With data being collected database is difficult, which is why and managed by so many differmost companies have not already done it, ent groups, it is an enormous challenge to despite its obvious benefits,” says Johngren ensure that recipients of reportable payments of Parallax Consulting. “Traditionally, indi- are properly identified in each of the data vidual companies have not integrated all agg sets collected by each division or functional spend transactions across the enterprise — group, and accurately linked across the varifor instance, R&D information was not inte- ous systems and departments where different grated with commercial activities, specialty types of spend activities are occurring. units such as oncology or vaccines were not In typical life sciences company, sales reps integrated with primary care units,” adds incur meal expenses, which are processed Accenture’s Schwenger. through the company’s travel & expense To date, in the process of becoming ready (T&E) department, while the financial IT for compliance reporting, “the challenge of system or Accounts Payable department maintaining data quality across the enter- elsewhere in the enterprise tracks payments prise has exposed some very deep holes in made to HCPs for services related to marketthe data-management and business-analyt- ing, medical and clinical affairs, and so forth. ics practices of companies that were once In many cases, individual HCPs or HCOs considered the best in class,” says Burgess of may be receiving payments from more than Ernst & Young. one department within the same life sciences Building a robust master database cre- company. ates a two-fold challenge: All sources of A robust master dataset needs to be more upstream data must be funneled into the than a name and address; it should include centralized agg spend system, and the data other identifiers like NPI or DEA number, must be cleansed and de-duped to ensure state license number and so on. According that it is as complete and accurate and in to the recent Cegedim survey, the ability to establish unique identifiers for HCPs and HCOs ranked as “the most challenging” aspect of compliance among respondents. “Since the information will be publicly accessible, it is of paramount importance to ensure that all spend data is allocated to the right individual, and that there is clear traceability back to the origin of the transaction,” says John D’Urso, managing partner at Knowledgent. “This will both ensure the validity of the posted information and allow compliance and spend personnel to respond to prescriber disputes.” Similarly, once an appropriate aggregation and reporting system is in place, it is important for companies to review their ability to prevent compliance infractions through proactive monitoring and alert measures. “This is generally achieved through a combination of alerts built on programming logic, workflow and approval mechanism,” says Newmark of IDC. “Reverse integration with CRM or sales force automation (SFA) systems may prove to be among the most valuable prevention mechanisms companies can implement.” For example, he suggests that when certain thresholds are reached (for instance, 50% of annual spending limit for an HCP), email alerts can be sent to applicable sales reps, district managers, marketing personnel and other stakeholders. Newmark also suggests that because sales reps typically have the most frequent interaction with HCPs, it is important that they have good visibility into other forms of compensation that their HCPs may receive through other channels of interactions (speaking engagements, consulting and clinical arrangements), so they can ensure that spending limits are not exceeded. “There is no better place for an agg spend dashboard to appear than within the SFA profile of each HCP,” he says. Seeking third-party assistance When it comes to evaluating potential packaged agg spend IT solutions from software or thirdparty service providers, “a fair amount of due diligence is required, from a total cost of ownership, venManage your expectations dor lock-in, and IT architecture When evaluating possible sysstandpoint,” says Burgess of Ernst Michael Johngren, tems and solutions for creating a Parallax Consulting & Young. IT managers will need to master customer database, Johngren evaluate the pluses and minuses of of Parallax notes that no off-the-shelf solu- a tight, point-to-point integration with the tion will necessarily be able to capture all enterprise IT architecture, thus locking in sources of spend data right out of the box, both the agg spend solution and the enterso users should evaluate the core feature set prise system, versus a “simplified” integraand plan for enhanced integration later. “The tion that allows data to move from one area data integration challenges, while not triv- to the other. ial, should be seen as a standard part of the Cegedim Relationship Management’s implementation, and either your internal IT Buzzeo says that leveraging a customer masteam or your external integration partner ter data management (cMDM) technology should have the skills to develop a robust as a service, together with a high-quality, data-integration pathway that works with the healthcare reference data source, is emerging chosen system.” as a best practice. The cMDM service, which Cegedim Relationship Management’s facilitates and centralizes the assignment of Buzzeo says that a best-in-class solution a unique customer identifier (ID), together should be able to accept agg spend data in with required identifiers for reporting (such three ways: as NPI, Vermont licensure numbers, and Massachusetts IDs) supports the cleans• From multiple upstream data feeds (from ing and augmentation of data. During data CRM or other enterprise systems) aggregation, this unique ID provides a cross• As data entry via a flexible user interface reference that can be used by upstream data(ensuring secure access for internal users capture systems, to assist in the standardizaor third parties to capture low-volume tion of data capture across the enterprise transactions) and the de-duplication of the data within the • From spreadsheet uploads using master agg spend database. standard Excel templates (ensuring secure “State legislatures and Congress really access for internal and third parties to capture were naïve about the complexity of drug higher-volume transactions). continued on page 31 > July | August 2011 29 www.PharmaceuticalCommerce.com http://www.PharmaceuticalCommerce.com

Table of Contents for the Digital Edition of Pharmaceutical Commerce - July/August 2011

Pharmaceutical Commerce - July/August 2011
Contents
Op-Ed
Top News
Business/Finance
Brand Communications
Supply Chain/Logistics
Manufacturing & Packaging
Legal/Regulatory
Information Technology
PDMA Exhibitors
Meetings and Editorial Index

Pharmaceutical Commerce - July/August 2011

Pharmaceutical Commerce - July/August 2011 - Pharmaceutical Commerce - July/August 2011 (Page Cover1)
Pharmaceutical Commerce - July/August 2011 - Pharmaceutical Commerce - July/August 2011 (Page Cover2)
Pharmaceutical Commerce - July/August 2011 - Pharmaceutical Commerce - July/August 2011 (Page 3)
Pharmaceutical Commerce - July/August 2011 - Contents (Page 4)
Pharmaceutical Commerce - July/August 2011 - Contents (Page 5)
Pharmaceutical Commerce - July/August 2011 - Contents (Page 6)
Pharmaceutical Commerce - July/August 2011 - Op-Ed (Page 7)
Pharmaceutical Commerce - July/August 2011 - Top News (Page 8)
Pharmaceutical Commerce - July/August 2011 - Top News (Page 9)
Pharmaceutical Commerce - July/August 2011 - Top News (Page 10)
Pharmaceutical Commerce - July/August 2011 - Top News (Page 11)
Pharmaceutical Commerce - July/August 2011 - Business/Finance (Page 12)
Pharmaceutical Commerce - July/August 2011 - Business/Finance (Page 13)
Pharmaceutical Commerce - July/August 2011 - Business/Finance (Page 14)
Pharmaceutical Commerce - July/August 2011 - Business/Finance (Page 15)
Pharmaceutical Commerce - July/August 2011 - Brand Communications (Page 16)
Pharmaceutical Commerce - July/August 2011 - Brand Communications (Page 17)
Pharmaceutical Commerce - July/August 2011 - Brand Communications (Page 18)
Pharmaceutical Commerce - July/August 2011 - Brand Communications (Page 19)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 20)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 21)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 22)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 23)
Pharmaceutical Commerce - July/August 2011 - Supply Chain/Logistics (Page 24)
Pharmaceutical Commerce - July/August 2011 - Manufacturing & Packaging (Page 25)
Pharmaceutical Commerce - July/August 2011 - Manufacturing & Packaging (Page 26)
Pharmaceutical Commerce - July/August 2011 - Manufacturing & Packaging (Page 27)
Pharmaceutical Commerce - July/August 2011 - Legal/Regulatory (Page 28)
Pharmaceutical Commerce - July/August 2011 - Legal/Regulatory (Page 29)
Pharmaceutical Commerce - July/August 2011 - Information Technology (Page 30)
Pharmaceutical Commerce - July/August 2011 - Information Technology (Page 31)
Pharmaceutical Commerce - July/August 2011 - PDMA Exhibitors (Page 32)
Pharmaceutical Commerce - July/August 2011 - PDMA Exhibitors (Page 33)
Pharmaceutical Commerce - July/August 2011 - PDMA Exhibitors (Page 34)
Pharmaceutical Commerce - July/August 2011 - Meetings and Editorial Index (Page 35)
Pharmaceutical Commerce - July/August 2011 - Meetings and Editorial Index (Page Cover4)
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