Top Drivers to Develop SP Business

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Presentation transcript:

Top Drivers to Develop SP Business Key Finding #1 Institutions are Pursuing Financial Incentives  like 340B Pricing in the Special Pharmacy Market  Motivations for developing SP business strategies are chiefly economic; they include 340B pricing opportunities and recapture of increasingly diminished margins. The drivers for SP business development differ discernibly by the primary organizational model of each health system's SP. Most health systems with internally developed SPs (63%) indicate 340B opportunities as the primary market influencers of their management tactics for specialty pharmaceuticals. Additionally, one half of IDNs that rely on external SP networks cite accessing limited distribution networks and SP network participation payer restrictions as the biggest motivators behind their SP strategy. Interestingly, the lowest priority drivers often are the most complex to implement and manage. Optimism over contracting opportunities for product acquisition and access and appears abundant. As a result, biopharmaceutical companies must continually assess potential candidates' ability to discern optimism vs. pragmatism. We can manage the patient better, but I think we can also, being 340B, we might be able to have better rates than most SPs. – Chief Pharmacy Officer   Top Drivers to Develop SP Business (Average distribution of 100 points indicating market event priority as key driver for pursuing an SP strategy) N=63 Abbreviations: ACO, accountable care organization. Source: Health Strategies Group, Specialty Pharmacy Manager Navigator, September 2017. To request slides info@healthstrategies.com