Medical device company uses automation tool to establish fair market value rates across different markets

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Client background 

An established global medical device manufacturer that operates in almost every region in the world.  

The business challenge 

Because the company operates in different markets across the globe, the organization handles a wide range of risks that come from engaging with multiple healthcare providers (HCPs) and non-HCPs in a variety of different settings. To harmonize its fair market value (FMV) programs across its different markets and regions as well as comply with anti-bribery, anti-corruption and anti-kickback statutes, the company was looking to implement a more defensible approach to establishing FMV rates.  

This provided a challenge for the company due to the nature of operating in multiple countries, including: 

• Having an inconsistent methodology and approach to HCP engagements and FMV rates on a country-to-country basis 
• Conducting business in emerging countries that are high on the corruption perception index (CPI) in addition to countries dealing with hyperinflation 
• Navigating the complexity that comes with fairly compensating HCPs from different countries that attend the same event 

Baker Tilly’s solution-driven approach 

To help fix the pain points the company was facing, Baker Tilly implemented our novel FMV rate calculation tool, fmvNOW™, to allow the company to have direct access to FMV hourly rates across different key opinion leader (KOL) groups in the countries that they operate.  

Baker Tilly first met with different regional team leaders to present the tool and the rates as well as explain the methodology and why it was important. After collecting feedback and input, Baker Tilly provided change management support to the client's different regional teams, explained the FMV methodology and held training sessions on how to understand and implement the new rates.  

Baker Tilly also provided educational sessions as to why KOLs were being paid specific rates and the importance of needing to establish these rates in accordance with global laws and regulations. The teams also received additional training on how to establish rates with non-HCPs, such as social media influencers, and factor in outliers, such as with HCPs that reside in countries that are experiencing high inflation.  

The accomplished results  

Once the change management support had been completed and the teams were successfully trained and socialized with the new FMV rate-setting approach, the company was able to easily access the information in a central repository and have a defensible approach to their FMV methodology. Knowing that the company now has a defensible approach to setting FMV rates, organizational leaders can focus their attention and effort on higher value-added work.  

For more information on this topic or to learn more about our compliance and ethics solutions for life science companies, connect with us today.