Contract Simulation is a simulation-based method for investigating one of the knottiest and most critical challenges in healthcare today: setting contracting strategy for your product. Our experience with behavioral simulations has provided us with the knowledge necessary to encourage payers to simulate their actual contracting behavior and goals instead of gaming the study in pursuit of better terms when they actually negotiate with your account executives. By observing simulated online contract negotiations with real stakeholders, you can test, set, identify, and evaluate the optimal contracting strategy.
The heart of Contract Simulation is a multi-stage negotiation between RG+A researchers playing the role of BioPharma account manager and executives who negotiate for a living. This activity, which takes place over several days, has been lauded by payers and clients for its depth and realism. A conjoint exercise after the simulation provides a tool you can use to model the impact of specific contract strategies and tactics on formulary acceptance, tier placement, and utilization controls.
Clients utilize Contract Simulation with payers, hospitals, and practice managers considering buy-and-bill products as a pivotal element in pre-launch planning or when evaluating how to respond to a new competitive entrant. We can integrate Contract Simulation results into our impact or forecast models and probability of success estimates.