Commercial Contracting Tactics: Segmentation and Targeting – Hospital Based

ClientA small pharmaceutical client with one major hospital based product
Company ObjectivesThe company asked MME to develop hospital contracting tactics both in advance and after a generic entrant that effected some but not all of their product offerings as well as to segment and provide targeted hospitals to their account management team.
Project DescriptionWorking with the client’s internal data and stakeholders MME:
  • Analyzed current contract performance to show areas of improvement for existing tactics and hospital performance
  • Segmented over 8,500 hospitals into logical groupings of adopters or non-adopters versus large and small, teaching and community hospitals and systems to create a new ~1,000 account target hospital list
  • Created detailed proactive step-by-step short-term and long-term contracting tactics for each segment of targeted hospitals/systems including walk-away prices and list/contract price changes Provided the segmented targeted hospital/system customers to the client’s account management team
  • Conducted market research to expand the product's hospital coverage into other departments and confirm contracting tactics.
Project OutcomeClient was able to proactively focus on converting loyal and important hospitals, maximize profits both pre- and post-generic entry and anticipate generic response.