1. Using a commercial market value proposition
The Federal market prioritizes cost-effectiveness and a manufacturer’s (or reseller’s) value proposition should address this priority. Efficacy as well as economic value should be presented in demonstrable terms specific to this market. Tailoring a commercial value proposition is the best starting point from a resource allocation efficiency perspective.
Specifically, adjustments by way of customized messaging that touts how this product will benefit the patients in this market should be layered into the value proposition. Highlighting other fact-based data such as lowering hospital admissions, improving patient adherence, solving a documented concern within the patient population, etc. that are highly relevant to this market should also be included.
2. Viewing the Federal Market as a single conglomerate
Depending on the product, the Agencies comprising of the Federal Market (i.e., Veterans Health Administration (VHA), Defense Health Administration (DHA), Indian Health Services (IHS), etc.) can be treated as a single account with the manufacturer’s account/sales team; however, it is important to understand each of these Agencies fundamentally operate differently, work on different timelines, and serve different populations. For example, while the DHA’s DOD Pharmacy & Therapeutics Committee (P&T) meets quarterly and reviews all newly approved drugs, the VHA P&T meets monthly and only reviews drugs relevant to the veteran population.
3. Making assumptions about the patient population
In order to right-size an investment into the Federal market, a manufacturer should not make assumptions on the population size or scope. Each health system is fundamentally serving different populations including different types of injuries, pre-existing conditions, etc. The VA, for example, is becoming more demographically diverse, but ultimately has a thread of commonality between its patients as those individuals sort through diseases or complications from their time in service. The DOD, however, is primarily serving diseases and patient profiles more similar to that of the general population. As such, a manufacturer should conduct detailed research to establish the prevalence of disease it’s product benefits prior to mapping out its market penetration approach to this market.