FMV rates converging as companies pursue transparency and global strategy
RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)-- Drug manufacturers pay US physicians 13% higher rates for the same consulting and advising activities as their European counterparts, according to a new white paper from Cutting Edge Information.
As the pharmaceutical industry inches towards greater transparency around payments to healthcare providers, companies have taken a closer look at their global strategies for compensating physicians. Part of the industry’s evolution has been an attempt to standardize compensation rates around the world.
To provide a guidepost for European thought leader compensation, CEI analysts calculated average hourly rates for U.S. and European physicians. These averages were derived from 800 fair-market value (FMV) compensation data points. Based on average hourly rates for various expertise levels, company sizes, therapeutic areas and activities, analysts determined that the average U.S. hourly rate is $306; the average European hourly rate is €183. Based on these findings, the average U.S. rate is 13 percent higher than a comparable European rate (exchange rate of approximately 1.48 from May 2011).
“Developing a global thought leader compensation plan can prove tricky,” said Yanis Saradjian, Cutting Edge Information’s director of consulting. “Not many companies had thought about global FMV for opinion leaders until this year. So finding the best practices to learn from takes time.”
Analysts developed “Thought Leader Compensation: US vs. EU” as a guidepost to help companies determine European fee schedules and compensation limits. “Thought Leader Compensation: US vs. EU” (http://www.cuttingedgeinfo.com/process/?ref=194) is based on European physician fee schedules for top-tier specialists and surgeons. The white paper highlights the differences between average U.S. and European hourly rates. It also includes benchmarking data on compensation limits for individual key opinion leaders in Europe and the United States.
Cutting Edge Information has compiled a database of hourly rates and flat fees for more than 25 specialty areas and from more than 100 countries, enabling clients to develop global FMV fee schedules for targeted specialties. With close to 10,000 data points available to set up region- or country-specific fee schedules worldwide, Cutting Edge Information’s FMV benchmarking and analysis service provides the largest FMV database available.
Cutting Edge Information
Elio Evangelista, 919-433-0214
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