Best Practices, LLC Strategic Benchmarking Research

Benchmarking Professional Medical Education Excellence:

Structures, Resources and Activities to Optimize Large

Biopharmaceutical Education Groups

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Table of Contents

Executive Summary pgs. 3-13

Research Overview pg. 4

Participating Companies pg. 5

Medical Education Landscape pg. 6

Change in Medical Education in Last 2-3 Years pg.7

Key Recommendations pg. 8

Key Findings & Insights pgs. 7-12

Dual Focus of Medical Education pg. 13

Structure & Activities pgs. 14-19

Professional Education Investment Level & Funding Sources pgs. 20-30

Professional Medical Education Staffing & Benchmark pgs. 31-42

Changing Trends & Directions For Medical Education pgs. 43-50

Benchmark Class Demographics pgs. 51-55

About Best Practices LLC pgs. 56-57

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Medical Education Benchmark Research: Objectives,

Methodology and Topics In an ever-changing industry where patient compliance, efficacy and safety are of the utmost importance, medical education

plays pivotal role in informing physicians and other health care professionals about the latest medical knowledge. Best Practices

LLC undertook this research to inform those who lead medical education functions about the proper size, resourcing, and

structure for this function or group.

Topics Covered

Research

Methodology

Research

Overview

Medical Education group structure and

activities performed

Funding channels utilized by Medical

Education groups

Staffing benchmarks for Medical Education

groups

Benchmarks for Medical Education

resources, investment allocation and budget

allocation by region and program type.

Trends in grants to professional

societies/associations for accredited and

non-accredited education programs

Future trends in Medical Education staffing

and investment

Best Practices, LLC engaged 11 leaders from 9 top

Biopharmaceutical and Medical Device companies

through a benchmarking survey. This report

captures insights across large healthcare pharma

as well as medical device industry.

New compliance, transparency rules and

regulations have tempered the sponsorship of

some medical education programs by pharma

and medical device companies, as well as some

third-party providers of such services.

This benchmarking study investigates emerging

Medical Education trends at medical device and

pharmaceutical organizations regarding funding,

program types. It also informs Medical Affairs

and Medical Education leaders on the proper

size, resourcing, and structure for this function

or group.

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Benchmark Class:

This study engaged 11 leaders supporting medical education at 9 leading life sciences and medical device companies. More than

50% of participants are at the level of director/ senior director and around 27% of participants are managers. More than 70% of

participants were from the U.S.

Universe of Learning: 9 Companies Participated In Study

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Medical Education Landscape Varies Greatly Across Sectors

Medical Education requirements, standards and “boundaries” are in a state of flux. Significant differences exist based on

region, size of company, therapeutic area and medical device / bio-pharm perspectives.

Factors Shaping Medical

Education Perspectives

Europe

Requirements

FDA & Safety

Pressures

Developing

Markets

Political

Pressures

U.S.

Requirements

Clinical &

Medical

Science

Structural

Forces

Creating

Changes

Medical Education –

Landscape

Clinical Education – Disease

State Awareness

Medical Education –

Product Specific

Medical Tech

Biopharma

Size of

Company

Region of World

Medical

Device

Therapeutic

Area

Operating

under CIA

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Key Findings & Insights : Professional Medical Education

Staffing and Benchmark The following key findings and insights emerged from this study.

Benchmark Companies Rely Heavily On Outsourcing

Large companies rely on outsourcing for developing and deploying medical education programs.

They outsource 53% of medical education program development to vendors, while 58% of

companies use vendors for program deployment and delivery.

On average, the companies employ 5 FTEs in the medical education group, The budget per FTE at

large companies stands at $3.23 million, and the span of control averages 3 medical education staff

per manager.

Companies Staffs Heavily For U.S. Region;

On average, large companies allocate 62% of their FTEs to the North American region and 29% of

FTEs to Europe. None of the FTEs in education function are allocated for field jobs, all of them are

in-house.

Large Companies Support Higher Number Of CME Programs

Benchmarked companies supported an average of 170 CME programs in the last fiscal year, while

the number of non-CME programs supported averaged of 98.

The budget per program averaged about $88,000.

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Q. Please indicate which structure best describes the organizational approach of your medical education function and organization.

Medical Education Centralized in Headquarter Country Or U.S.

Market

% Respondents

More than 50% of large companies use a centralized structure for their medical education function either in the U.S. market or in

the country where the HQ is located, while 18% prefer either a hybrid structure or have regional headquarters in U.S. and

Europe.

N=11

Centralized in headquarters

country 18%

Centralized in U.S. Market (where U.S.

is not the headquarters

country) 37%

Regional headquarters in U.S. & Europe

18%

Hybrid: Corporate Headquarters AND separate Business Unit headquarters

18%

Other 9%

Others: U.S. only

Professional Medical Education Structural Approach

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Companies Develop, Deploy Programs Through Vendors

% Respondents

Q. What percentage of your programs are generated through each of the following talent pools (Each row should add up to 100%).

N=6

Benchmark participants, on average, outsource more than 50% of their medical education program development and delivery to

vendors.

In-company % Outsourced %

75th Percentile 95% 100%

Mean 47% 53%

Median 40% 60%

25th Percentile 0% 5%

Medical Education Program

Development

In-company % Outsourced %

79% 100%

42% 58%

38% 63%

0% 21%

Medical Education Program

Deployment/Delivery

In sourced / Outsourced:

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Q. Please provide the following information, which will be used for classification purposes and to ensure that you receive your copy of

the study deliverable.

Universe of Learning: Insights Drawn from Host of Bio-pharma

and Medical Device Experts

% Respondents

This research features insights from a range of leaders in medical education functions. More than half of the respondents serve

in director / sr. director roles, while around 20% of participants serve as managers.

N=11

Other: Team Lead, Independent Grants for

Learning and Change, Medical Education

and Training Principal

Director/ Senior Director

55%

Manger 27%

Other 18%

Participants Designation

About Best Practices LLC

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Best Practices®, LLC is an internationally recognized thought leader in the field of best practice

benchmarking®. We are a research, consulting, benchmark database, publishing and advisory firm that

conducts work based on the simple yet profound principle that organizations can chart a course to superior

economic performance by leveraging the best business practices, operating tactics and winning strategies of

world-class companies.

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Chapel Hill, NC 27517

(Phone): 919-403-0251

www.best-in-class.com

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