In 2016, Applied Policy provided our client with strategic guidance regarding their anti-infective pharmaceutical products following the Centers for Medicare & Medicaid’s (CMS) emerging bundled payment initiatives. The client is an Ireland-based manufacturer that develops, manufactures, and commercializes branded pharmaceuticals, devices and biologic products for patients in approximately 100 countries. The organization prides themselves on bringing innovative products to market and participating in socially responsible corporate operation. They have been a client of Applied Policy’s for over four years.

CMS’ varied bundled payment models represent an effort to shift providers towards value-based payments and encourage providers to provide high quality, low-cost care to patients.  These changes have a large impact on hospitals’ policies and procedures related to surgical procedures and post-surgical care. These hospitals are also the client’s primary customer base for the company’s anti-infective products.

Looking forward, CMS has established a goal that 50% of Medicare payments are tied to alternative payment models by 2018. Understanding this, Applied Policy proactively identified that these changes would impact hospitals and brought these reforms to the attention of the client. The manufacturer looked to Applied Policy to provide clarity amidst uncertainty about the impact of bundled payments on hospital approaches to patient care.

Applied Policy served the client by creating a comprehensive overview of the payment reforms and proposing a strategy for the anti-infective brand team. The goal was to educate the brand team about the changing environment and transition facing their hospital customers and leveraging those as opportunities to maintain market access. Applied Policy’s presentation allowed the client to adjust their forecasts and plan appropriately, linking the shift towards value-based payments with their business in a way that was not otherwise clear.