Best Practices, LLC Strategic Benchmarking Research

Organizing and Aligning Medical Education Roles in the

Medical Device Industry:

Optimizing the Structure, Resources and Activities to Improve in Medical

Education Delivery

Page | 2

Table of Contents

Executive Summary pgs. 3-17

Research Overview pg. 4

Participating Companies pg. 5

Key Recommendations pg. 6-8

Key Findings & Insights pgs. 9-13

Structure & Activities pgs. 14-19

Professional Education Investment Level & Funding Sources pgs. 20-31

Professional Medical Education Staffing & Benchmark pgs. 32-41

Changing Trends & Directions For Medical Education pgs. 42-49

Benchmark Class Demographics pgs. 50-54

About Best Practices LLC pgs. 55-56

Executive Summary

Page | 4

Medical Education Benchmark Research: Objectives, Methodology &

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

pivotal role in informing physicians & healthcare professionals about the latest medical knowledge. Best Practices, LLC

undertook this benchmarking study to conduct a performance benchmark review to inform those that lead medical education

functions on the proper size, resourcing, and structure for this function or group.

Topics Covered

Research

Methodology

Research

Overview

Medical Education Group Structure And

Activities Performed

The Funding Channels Utilized By

Medical Education Groups

Staffing Benchmarks For Medical

Education Groups

Benchmark 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 & Investment

Best Practices, LLC engaged 8 leaders

from 6 top medical device companies

through a benchmarking survey. This

report captures insights across medical

device industries.

New compliance, transparency rules and

regulations have tempered the

sponsorship of some medical education

programs by medical device companies,

as well as some third-party providers of

such services.

This benchmarking study investigates

emerging Medical Education trends at

medical device organizations regarding

funding, program types. It also informs

Medical Affairs & Medical Education

function leaders on the proper size,

resourcing, and structure for this function

or group.

Page | 5

Benchmark Class:

Eight managers who support medical education at 6 medical device companies participated in this research. More than 50% of

participants are at the level of director/ senior director, with another 20% being managers. Two-third of participants are from the

U.S.

Universe of Learning: 6 Companies Participated In Study

Page | 6

Medical Education Landscape Varies Greatly Across Sectors

Medical Education requirements, standards and “boundaries” are in a state of flux. There are significant differences based

on region, size of company, therapeutic area and Medical Device / Bio-pharm perspectives.

Factors Shaping MedEd Perspectives

Europe

Requirements

FDA & Safety

Pressures

Political

Pressures

Developing

Markets

Political

Pressures

U.S.

Requirements

Clinical &

Medical

Science

Litigation Structural

Forces

Creating

Changes

CME 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

Page | 7

Key Findings & Insights The following key findings and insights emerged from this study.

A Hybrid Structure Is Favored for Organizing Medical Education Groups:

Half of medical device benchmark partners use a hybrid structure for their medical education groups.

These companies have oversight at a corporate level, as well as at a business unit.

Medical education groups at 38% of device benchmark companies are part of a therapeutically

organized area. Professionally, medical education is a part of a larger medical affairs group at majority

of medical devices companies.

Medical Device Focus On Non-accredited Programs:

Device companies allocate 75% of the total Medical Education budget to non-accredited programs, of

which 67% is for programs delivered by the companies.

Structure & Activities

Page | 9

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

organization.

As Medical Education Serves a Dual Role, Half of Benchmark Class

Use a Hybrid Structure to Organize for Effectiveness

% Respondents

Half of the benchmark class prefers to use a hybrid structure that allows oversight by both corporate headquarters and a

business unit. It also appears that many companies have abandoned the idea of a hub & spokes hybrid structure, which was

used by 29% of respondents back in 2011.1

Centralized in headquarters

country 12%

Regional headquarters in U.S. & Europe

38%

Hybrid: Corporate

Headquarters & separate BU headquarters

50%

N=8

Professional Medical Education Structural Approach

1PSM-269 Professional Medical Education Excellence: Structures, Resources, Services & Performance Levels to Optimize Pharmaceutical Education Groups, 2011

Page | 10

Medical Device Companies Invests More In Non-Accredited

Programs

% Respondents

N=6

Q. Estimate the percent of your educational program budget allocated to these different program types

Accredited programs (company delivered)

22%

Accredited programs

(independent /trusted Third-

party Delivered) 4%

Non-accredited programs (company delivered)

67%

Non-accredited programs

(independent /trusted Third-party Delivered

7%

Non-accredited program investment averages about 74% of total program budget in the medical device sector with accredited

program investment totaling around to 26%.

Accredited programs

(company delivered):

75th Percentile 40%

Mean 22%

Median 5%

25th Percentile 0%

Accredited programs

(independent /trusted Third-

party Delivered)

75th Percentile 4%

Mean 4%

Median 0%

25th Percentile 0%

Non-accredited programs

(company delivered)

75th Percentile 90%

Mean 68%

Median 85%

25th Percentile 58%

Non-accredited programs

(independent /trusted Third-

party Delivered

75th Percentile 8%

Mean 7%

Median 0%

25th Percentile 0%

Budget Allocation by

Program Type:

Page | 11

Corporate Perspective

Global medical education

services of my company

14%

Country/regional medical

education services of my

company 14%

Global medical education

services of my business unit /

division 43%

Country/regional medical

education services of my business unit /

division 29%

Q. Please note what corporate perspective you are reflecting with your responses. I am answering for:

Benchmark Class Offers Variety of Perspectives on Delivery of

Medical Education

% Respondents N=7

Around 43% of medical device segment respondents brought global medical education perspective for a single business unit.

N=7

About Best Practices LLC

Page | 13

Learn More About Our Company

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.

6350 Quadrangle Drive, Suite 200

Chapel Hill, NC 27517

(Phone): 919-403-0251

www.best-in-class.com