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2021 State of Revenue Report: Regulation and compliance worry life sciences executives

March 10, 2021

Recently, Model N commissioned a research study to better understand how executives are dealing with the challenges of revenue management. Of the executives surveyed, 91% are concerned that government regulations will have a bigger impact in 2021 than usual. With 95% of the life sciences companies in the study reporting that they are “highly regulated, governmental oversight is especially worrisome for pharmaceutical and medtech executives. 

 As with any administration change, shifts in regulatory focus are expected. Rules proposed in recent years have roughly a 50-50 chance of being implemented – and that uncertainty has executives taking steps to prepare their revenue management program for the possibilities of new healthcare policies and changes implemented by a new secretary of Health and Human Services (HHS).  

 The business impact of compliance 

Almost all, or 98%, of life sciences companies report that they experience revenue loss as a direct result of regulatory compliance. This loss occurs in a variety of ways, including contracting issues and go-to-market delays, but the changing regulatory landscape also makes pricing more difficult. What’s more troubling is that these pricing challenges cause confusion that leaks through to customers. A third of life sciences executives reported that their customers frequently see conflicting pricing, and well over half (57%) indicated this problem happens occasionally.  

 Better revenue management is an opportunity 

In life sciences, 80% of medical technology executives and 69% of pharmaceutical executives reported their industry could do better with revenue management. And they see areas of opportunity. Life sciences executives believe that by more effectively managing revenue activities, they could see positive impacts on business results that extend beyond reducing revenue leakage, such as:  

  • Business continuity in the face of big changes (39%) 
  • Global standardization and global commercial excellence (37%) 
  • Regulatory compliance (34%) 


Read the 2021 State of Revenue Report for more in-depth findings on how life sciences executives are dealing with revenue management challenges and where they see the biggest opportunities for optimizing revenue activities 

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