Measuring Contribution of Managed Markets in terms of Sales- Looking for Insight

I have a client who is wrestling with how to measure the contribution of managed markets teams to sales, thinking in P&L terms. This client has a new VP that has controls sales and managed markets, and is under the impression that if sales can be measured in terms of profit and loss, than managed markets teams should be able to be as well.

Obviously, it is easier to do for field sales, when you ID WAC sales by area, and then back out samples, copay cards, salary, benefits, etc. It is just harder to do for MM (ex. how do you measure NOT doing a contract, where you are getting good access for products at a T3 position vs. paying rebates for T2?).

In your experience, have you seen an interesting way to measure the performance of managed markets groups purely in terms of revenue generated? My instincts tell me that this can’t be done, because the efforts of sales and managed markets are not mutually exclusive, and trying to quantify this type of figure would only produce unreliable results. From my experience, a better measure of managed markets performance would be looking at the number of lives where they’ve got access due to some effort of the MM team.

Do you have any thoughts on this issue?

 

Measure prescription revenue per plan in each state.

Lives is a good measure, but can be misleading.

 

Best measure of MM performance is improvement in formulary access or tiers. Baseline is prior to formulary acceptance or tier position and after. Truth is MM does more Rodriguez e business than sales. If tier or formulary is bad, sales reps don't even promote or sample.

 

the measurements currently used pin managed markets against the sales reps, it doesn't make sense. Reps don't care about gaining market share on any specific plan, they want unrestricted access. The way it stands makes me, as a rep, want to get rxs on plans where we aren't preferred so rams can bust their butts and get more coverage. We are not on the same team.

 

Measure P&L for MM looking at change in tier access tied to revenue growth/loss. Example: Drug at T3 with no rebates for Plan xyz at $100 revenue per rx gets 100% revenue, MM team then contracts for T2 with 50% rebate, creating $50 revenue per RX, but doesnt double volume on pull through = loss on plan improvement. Do the same example again, except pull through triples, then revenue is up $50 per rx.