Trends, Insights & Analysis

The Single Question You Are Missing From Your RFP

Nov 16, 2016
The Single Question You Are Missing from Your RFP.jpg

 

“Can’t see the forest for the trees” is a commonly used expression to describe someone who is too involved with the details of a problem to see the bigger picture.

We’d like to think about this analogy when it comes to designing your copay program. Selecting the right strategic partner can be a challenge and a Request for Proposal (RFP) is an important part of the selection process. As you review your options, ask yourself, are you focused on the complete copay program, not just a small piece of the pie?

Let’s look at an example:

Assume you spend $102 million on a copay program – $100 million to patient benefit and $2 million to program administration. If you reduce the admin cost by 20%, you achieve savings of $400k. Alternatively, if you leverage your copay partner’s expertise to reduce your entire patient benefit cost by 2%, you achieve savings of $2 million – 4 times the budget saved by just focusing on program administration.

comp-patient-adherence-1.png

Therefore, while managing and understanding detailed program costs are important and a key part of any RFP process, make sure you don’t miss the forest for the trees. Ask the most important question you may not be asking now: “Is this the right partner to help me get the most out of the big piece of the pie?” Your strategic partner should take a holistic approach to program cost as they design an efficient and effective program; you should take this same holistic approach when selecting a strategic partner to lead your copay program efforts.

Questions? Contact us.

 

Topics: Trends, Insights & Analysis

Posted by

Fendi Liu