Aggregate Spend Solutions

1. Aggregate Spend Solutions Defining the Customer and Selling the Solution: Silver Linings www.LifeComplianceSolutions.com

2. Life Compliance Solutions Who we are and what we do Life Compliance Solutions is a consulting practice comprised of experts in pharmaceutical and medical device compliance and solutions. We are unique in this field: our consultants have in-house industry experience, so you know that your compliance solution is tailored to the framework of how you do business. Kim Life, JD, Principal Kim offers advice and counseling for pharmaceutical and medical device companies grappling with compliance issues. Kim comes to this space with a unique perspective. She has nine years of pharmaceutical and healthcare legal experience, both in-house and as outside counsel, and specializes in Aggregate Spend Solutions. Her success is derived in part from her pre-law fifteen year career as an innovative and visionary technical solutions consultant for a broad client group in the United States and abroad. Kim’s analytic and strategic approach to project implementation combine readily with her legal compliance experience to give Kim a competitive advantage in crafting compliance solutions. For more information, contact us at: Info@KLifeSolutions.com • Website: www.KLifeSolutions.com • Latest state reporting and aggregate spend news: www.KLifeSolutions.com/blog

3. Defining the Customer Not Just Sales & Marketing: HCP and HCO Touch-Points Across the Organization

4. It starts with a Customer Master What is a Customer Master and why do we care? • Without a common identifier across multiple non-integrated systems, you might have multiple variations of the same Reportable Recipient • Dr. Jones: spend reported in Travel and Expenses • J. Jones: spend reported by Speaker Management vendor • John Jones MD: spend reported in Concur meals + • Dr. Jones has multiple addresses across systems • Dr. Jones practices in multiple states • Customer Master identifies, tracks, and consolidates spend related to Dr. Jones • Creates clean customer database • Provides detailed and accurate customer data across systems • But wait…

5. Enterprise Risk Management It doesn’t end with Sales and Marketing • Not all customers are Reportable Recipients • Tracking customer data beyond Aggregate Spend improves efficiencies in • Vendor management • Cross-departmental spend on all customers

6. Who are your customers? • Promotional? • HCP • Customer (Direct sell) • Influencer (writes the prescription) • Vendor (hired as Key Opinion Leader - KOP) • HCO • Affiliations • Patient organizations • Patients • Grants? • Institutions, patient organizations • Medical Affairs? • HCPs, institutions, researchers • Compliance? • Anyone in a position to influence prescribing • Expanded by legislation to include prescriber employees • What about the lab tech? • Does legislative intent influence how far this reporting goes? • Legal? • Broader view of “customer” includes influencers of • Prescribing • Legislation • Formulary • Pricing  • Government Affairs?

7. Non-HCP Customers • “Customer” definition incomplete without non-HCP customers and Reportable Recipients • Purchasing Agent • Hospital Administrator • Pharmacy Benefit Manager • Pharmacist • Pharmacy • Wholesaler • Patients • State • Non-prescribing nurses and assistants • Dieticians • Retail Outlets • Hospitals • Long Term Care Facility • Non-HCPs reportable in • Maine: employees, carriers, managers, entities • Massachusetts: employees • Vermont: employees, recommenders, entities • DC: employees, carriers, managers, entities • West Virginia: entities

8. Tracking Affiliations Next wave of transparency: Tracking spend on customers through affiliations Q&A: how do you do this?

9. Vendor Feeds Aggregate Spend data includes vendor feeds How do you sync your vendor definition of “Customer” with yours?

10. Selling the Solution The Silver Lining www.LifeComplianceSolutions.com

11. Introduction to the Bright Side • Disclosure and Transparency inevitable • Federal: Physician Payments Sunshine Act • State law (current) • Massachusetts • Vermont • West Virginia • Washington, DC • Minnesota • California • Maine • Nevada • State law pending: too numerous for this slide • Implementing aggregate spend solution has silver linings for • Executive Management • Commercial • Compliance • Legal

12. Executive Management More accurate reports reduce compliance risk Broader and more accurate view of spend allows better spend allocation Maximize human resources Improve customer relations with cross-enterprise Customer Master database (essential to aggregate spend solution

13. Commercial Strategic insight into promotional spend Proactive spend threshold alerts that can be pushed out to the field forces Provide Key Opinion Leaders with periodic reports regarding honoraria and expenses

14. Compliance • Compiled data offers robust tool for monitoring policy compliance • Tracking spend • Touch-point ceilings • Opportunity to formalize Transparency and Disclosure policy and procedures • Ensuring accurate disclosure saves money and embarrassment

15. Legal • Unified solution may be mitigating factor in investigations • Avoid potential repercussions of being an outlier • Disclosure requirements contained in numerous settlement agreements