hols: the new payer facilitator: how health outcomes liaisons navigate health care reform and create...

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BEST PRACTICES, ® LLC Best Practices, LLC Strategic Benchmarking Research HOLs: The New Payer Facilitator How Health Outcomes Liaisons Navigate Health Care Reform and Create Value within the Industry Copyright © Best Practices, LLC

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Biopharmaceutical and medical device companies in the current outcomes-focused market depend increasingly upon Health Outcomes Liaison (HOL) staff to serve as a scientific bridge with payer organizations, thought leaders, clinical investigators and other important healthcare decision makers. As the demand for outcomes and comparative effectiveness data grows, successful companies will need to know how to fully leverage the relatively new, field-based HOL function. Best Practices, LLC, has conducted research that will help pharma and biotech executives and managers identify how leading companies deliver exceptional HOL services in an increasingly challenging business environment. The research also examines best practices in HOL management and identifies future trends expected to impact the HOL function. Leaders burdened with headcount constraints and insufficient resources to support new products can potentially gain critical efficiencies through the shrewd use of HOLs.

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Page 1: HOLs: The New Payer Facilitator: How Health Outcomes Liaisons Navigate Health Care Reform and Create Value within the Industry

BEST PRACTICES,

®

LLC

Best Practices, LLC

Strategic Benchmarking Research

HOLs: The New Payer Facilitator How Health Outcomes Liaisons Navigate Health

Care Reform and Create Value within the Industry

Copyright © Best Practices, LLC

Page 2: HOLs: The New Payer Facilitator: How Health Outcomes Liaisons Navigate Health Care Reform and Create Value within the Industry

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LLC

Table of Contents

Executive Summary pp. 3-10

Research Overview

Participating Companies

Key Recommendations

Key Findings & Insights

Health Outcome Liaisons: Activities pp. 11-19

Health Outcome Liaisons: Structure & Resources pp.20-34

Health Outcome Liaisons: Differentiation of Role pp.35-41

Health Outcome Liaisons: Customer Engagement pp.42-48

Health Outcome Liaisons: Looking Ahead pp.49-54

Participant Demographic Data pp.55-59

About Best Practices, LLC pp.60

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Copyright © Best Practices, LLC

Page 3: HOLs: The New Payer Facilitator: How Health Outcomes Liaisons Navigate Health Care Reform and Create Value within the Industry

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Field Research & Insight Development:

Research results are based upon:

Survey responses from 23 HOL program leaders

at 19 different pharmaceutical and medical device

companies

Deep-dive interviews with industry veterans

Improve HOL Program

Management & Maximize

Utility of HOL Staff

Research Objectives & Methodology

Research Objectives:

Understand the structure and resources of Health Outcome Liaisons (HOL) programs, including

staffing, budget, geographic span, oversight responsibility, and services provided

Chart the scope, frequency, and timing of HOL services

Outline methods HOLs use to engage internal and external customers and build lasting relationships

Describe how companies differentiate the roles of HOL, MSL, Key Account Manager and Sales

Identify trends expected to impact the HOL function

Best Practices, LLC explored how leading companies deliver exceptional HOL services in an evwer-changing business environment. The research also examined best practices in HOL management and differentiation of HOLs from other positions that serve diverse customer groups such as physicians, patients, payers, and advocates.

Business Objective:

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Page 4: HOLs: The New Payer Facilitator: How Health Outcomes Liaisons Navigate Health Care Reform and Create Value within the Industry

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Companies Participating in Study

Benchmark Participants

This research emerges from survey data gathered from 23 participants representing 19 leading

pharmaceutical companies. Best Practices, LLC analysts also conducted deep-dive interviews with

five participating executives to gather additional insights.

Bio-pharmaceutical 92%

Medical Device 4% Diagnostic 4%

(n = 23)

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Amgen, Becton Dickinson, Boehringer Ingelheim, Cubist, Daiichi-Sankyo, Endo Pharmaceuticals, Fresenius, Genentech,

GlaxoSmithKline, Janssen, Medivation, Merck & Co., Merck Serono, Pacira, Peloton, Sanofi, Sanofi Pasteur, Shire, Teva

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On Average, HOL Programs Are Less than Five Years Old: The majority of Health Outcome Liaison programs are in their early development, with only 25% of respondents indicating that their programs have been in place for seven years or longer.

HOL Groups Often Report to Medical Affairs: More than two-thirds of respondents indicated their

HOL functions report into Medical Affairs. Another 16% report to Market Access or Health Economics &

Outcomes Research (HEOR) groups.

Average HOL Program Has More than Seven Employees: The size of HOL programs varied across

companies based on their development and differentiation of the position, with an average of 7.28 HOL

employees. On average, each HOL supports 1.7 on-market products. The mean ratio of pipeline products

per HOL is 1.8.

Face-to-Face Talks Help Build Strong Payer Relationships: Face-to-face visits are the most important

channel for building strong working relationships and credibility with decision makers. Face-to-face visits

with both thought leaders and payer groups last between 30 minutes and an hour, with a little more time

focused towards payer groups. Although payer groups are traditionally targeted, HOLs must deliver a

strong value proposition case on the value of health economic data to both customer segments.

Compliance & Regulation Will Continue to Impact HOL Role: The health care environment in the U.S.

is changing rapidly and dramatically, driving an increased need for health outcomes data and for HOLs

who can deliver that data to decision makers and thought leaders with clarity and impact. Currently,

compliance standards for HOL activities vary across the benchmark class.

Key Findings & Insights:

The following key findings and insights concerning HOL program structure and budget

emerged from this study.

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LLC

Other

5%

Sales/Marketing

(Commercial

Ops)

10%

Market

Access/Health

Economics &

Outcome

Research

16%

Medical Affairs

68%

HOL Groups Most Often Reports to Medical Affairs Function

More than two-thirds of respondents indicated their HOLs report through the Medical Affairs function, with another 16% reporting into Market Access or Heath Economics and Outcomes. HOLs should position themselves further upstream in Medical Affairs as the role becomes more developed.

(n=19)

Q. To what function does the HOL group report?

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HOL Reporting Structure

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Multiple Advanced Degrees Required for HOL Position A majority of respondents require that HOLs have some combination of PhD, PharmD, and MD credentials. This requirement reflects the wide variety of complex responsibilities associated with the HOL position, as well as the perceived importance of the job. Many companies also seek prior clinical and/or payer experience for the position to increase HOL credibility with decision makers.

(n=18)

Q. What is the preferred level of education required to become an HOL at your company?

(Select all that apply.)

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17%

56%

67%

72%

Master's

Degree

MD

PhD

PharmD

HOL Educational Demographics

% Responses

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Weekly

6%

Monthly

11%

Quarterly

28%

Semiannually

22%

No continuous

training

provided

11%

Ad hoc, 22%

Two-Thirds Provide Regular, Ongoing Training for HOLs

Two-thirds of benchmark participants provide regular training for HOLs, with half training quarterly or semiannually and 17% training as often as weekly. Interviews suggested that HOL training topics reflect customer questions and information needs. The changing regulatory environment and the wide range of HOL responsibilities drive training frequency.

(n=18)

Q. What is the frequency of ongoing training provided to HOLs?

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HOL Training Frequency Voices from the Field:

“Probably only 60% of the time will we find

clinical, payer and outcomes experience when

hiring an HOL candidate. But a gap around

outcomes can be dealt with rather quickly

through additional training within the

organization—such as increased project

responsibility—to give them on-ground

experience. It’s a constant evolution with

no one the same.”

-Interviewed Executive

“Typically, it’s one session a month devoted

to healthcare policy changes. Other sessions

are devoted to a specific product,

topic, study, or competitor information.”

-Interviewed Executive

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17%

24%

24%

35%

Each group manages its own field

schedule and provides different

information and resources to the same

clients.

When MSLs are asked technical

questions pertaining to health

outcomes, they ask an HOL to meet

with the client.

There is overlap between

responsibilties assigned to HOLs and

MSLs, or the role differentiation is not

clear.

Other

HOL/MSL Responsibilities Are Not Always Well Differentiated

(n=17)

Q. How would you define the differences in responsibilities between HOLs and MSLs? (choose one)

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Other Responses:

• “HOLs are the primary interface for payer

customers”

• “Combined role”

• “Different clients”

• “MSLs and HOLs have a different set of non-

overlapping clients. Whereas MSLs provide in-

depth clinical information within a dedicated

therapeutic area, HOLs provide clinical

information across all products, as well as

health economic information”

• “MSLs can talk reactively off-label, HOLs can

talk proactively on-label”

• “HOLs call on Payer customers only”

Differentiation of HOL/MSL Responsibilities

% Responses

Participants take varying approaches to differentiating HOLs from their MSL counterparts. Many companies divide the roles according to the customer groups targeted, scope of work, or type of information they provide. Nearly one-quarter say responsibilities overlap and roles are not distinct, while at some companies, there is a convergence of responsibilities into one overarching role.

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HOLs Frequently Collaborate with MSLs & Specialized MSLs Depending on geography and skill set, MSL/HOL collaborations are becoming more typical. Some

companies are using a hybrid model, which couple HOL and MSL responsibilities. In addition,

companies have begun to utilize increasingly valuable specialized MSLs known as Managed Care

Liaisons to great success with the payer groups.

Evidence-

Based

Economic Value

Proposition

Peer

Influencers

Clinical

Talent

Technical

Experts

Voices from the Field:

“Our team is a combined HOL and

MSL function. Customers want

individuals who carry the portfolio

and can pivot between a deep clinical

and outcomes discussion. This

group informs corporate strategy

across departments.”

-Interviewed Executive

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HOLs Begin Working with a Pipeline Drug by Phase III At more than half the benchmark companies, HOLs begin working with a drug at Phase III or earlier,

while 37% become involved later in the development process. Companies are transitioning to involve

HOLs in development earlier so their studies can benefit from decision-maker feedback that HOLs

capture in the field.

(n=16)

Q. When do your HOLs typically first work with a drug in development?

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First 12-18

Months on the

Market

6%

Registration

and Launch

31%

Phase III

38%

Prior to Phase

III

25%

Initial HOL Involvement with Drug

Voices from the Field:

“You need a forward-looking

strategy, because as pipeline

products come out and companies

apply pressure on the formulary,

ultimately, they’d rather see some of

those patient outcomes be included

in the original study as soon as

possible instead of having to wait

and put that on the marketplace and

wait to see if we can fully get those

health outcomes or cost

effectiveness later. So in other

words, just getting things put into

the study earlier in the timeline

rather than later is always a desired

outcome.”

-Interviewed Manager

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HOLs Support Average of Nine In-Market Products + Pipeline

HOLs at participating companies support an average of 9.4 in-market products and 10.8 products in the pipeline.

Q. How many products does your company have with which HOLs are involved?

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Products currently on the market:

Products in the pipeline:

Max 20 40

75th Percentile 12 10

Mean 9.4 10.8

Median 9 6

25th Percentile 5 3

Min 0 0

(n=21) (n=19)

Number of Products

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LLC

Best Practices, LLC 6350 Quadrangle Drive, Suite 200

Chapel Hill, NC 27517

www.best-in-class.com

919-403-0251

[email protected]

About Best Practices, LLC Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics, and winning strategies of world-class companies.

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