For the fourth straight year, Model N commissioned a research study to better understand how executives are dealing with the challenges of revenue management at pharmaceutical and medical technology companies. Of the executives surveyed, 35% believe their industry is doing a better job at revenue management in 2022 than in 2021. However, virtually all report they have challenges with revenue management within their own companies.
Managing and controlling data is a key concern for nearly half of pharmaceutical and medtech executives. Likely because of this data issue, 82% of pharma executives and 69% of medtech executives are less certain about the accuracy of their revenue intelligence and reports than they were five years ago.
Along with data concerns, 96% of life sciences companies expect staffing and expertise issues to impact revenue management this year. Executives are struggling to hire high-skill staff, find consultants and contractors, and manage existing workload. This could further complicate their ability to get accurate and real-time access to data and effectively address ongoing compliance challenges.
Meeting new and ongoing compliance mandates
Revenue management teams at life sciences companies are universally (99.5%) taking steps to prepare for potential governmental changes in 2022. Ensuring regulatory compliance on both the state and federal level is a concern for four out of five executives – likely due to growing adoption of state-specific price transparency mandates. To effectively manage all their compliance processes, slightly more than half of executives report that they need to add headcount or rely on consultants.
Technology promises substantial benefits
A range of innovative data technology – including advanced analytics, artificial intelligence and machine learning, and APIs and real-time data – are enabling better revenue management. Life sciences executives believe that harnessing better technical capabilities will deliver substantial benefits. Along with an increase in revenue, life sciences executives believe they would be able to:
- Improve financial controls and compliance processes (43%)
- Realize an increased competitive advantage (42%)
- Increase investment in innovation (40%)
Read the 2022 State of Revenue Report and join me, along with my colleagues and industry experts, for the State of Revenue for Life Sciences webinar for more in-depth findings on how revenue management is evolving in this industry and what executives are most excited about.
