Life Sciences & Contracts Management: Visibility, Time Savings, & Driving Revenue
Value-based contracts (VBCs) are increasing in popularity throughout field, market access, and contracts teams across the life sciences industry. It’s important that relevant data is used to create these types of contracts so that the output is most advantageous to the customer, as well as the patient. Not only is visibility into contract management beneficial to the customer but it also has dual benefits for both commercial and contracts and pricing teams in medical device and pharmaceutical companies.
Having heightened contracts visibility helps drive stronger decision making, which allows organizations to better gauge potential profitability of contracts with IDNs, insurers, and benefits managers. From initial requests to contract creation and execution, the entire network of communication would benefit from a stronger digital infrastructure. With the right digital tools in place, commercial and contracts teams can collaborate more efficiently to save time, re-prioritize efforts in other areas, and ultimately create better access to care for patients.
Drawbacks of inefficient contract management
In order to expand the use of VBCs, the points of inefficiency in contract management need to be understood and addressed first. For example, lack of contract performance metrics in one collaborative location makes it difficult for commercial and contracts teams to analyze and create pricing strategies. This leads to insufficient collaboration between the two teams and leaves room for error and miscommunicated information throughout the organization.
Lack of effective decision making regarding the value and potential revenue that could come out of specific contracts is another major drawback of inefficiently managing contracts. This drawback is a direct result of not having the digital infrastructure, the data capabilities, or the transparency needed to optimize market access and collaboration within life sciences organizations.
Increasing efficiencies throughout the entire contract management process, will drive profitability for your life sciences organization. With the right tools and performance analytics history, your team will understand what contracting strategies work best for ultimate impact and profitability. Having pull-through recommendations will help your commercial and contracts teams in driving more VBCs with IDNs as well as insurers and other external partners.
Digital collaboration tools are needed to bridge communication gaps and reduce confusion. Analytics at the forefront of both contracts and pricing and commercial teams will increase visibility, ultimately helping senior leaders control costs and improve patient outcomes.
Dual-benefits from digital
Embracing digital tools for smarter and more streamlined contracts management and improving your technological infrastructure can have dual-benefits for your commercial and contracts and pricing teams. One global medical device and equipment manufacturing company saw the following benefits for their teams:
- Obtained high net positive time/productivity gains
- Reduction in NAM daily requests, allowing for an overall increase in saved costs
- Time savings were utilized to do Level 5 Analytics on strategic contract pricing analysis and analytics
- Reduction in daily NAM Requests to pricing team
- Greater visibility to make better contracting decisions and Pull through with Field
Collaborative digital tools ease the pain points associated with managing contracts among internal contracts, field teams, and customers. TikaMobile’s Contract Management Module allows for seamless collaboration on contracting decisions in real-time between commercial and contract teams that will save time and help both teams become more self-sufficient.