Can a Patient Adherence Program be Self-Funded?

According to the report “Ensuring Profitable Patient Adherence Programs: Using Analytics and Metrics to Improve the Bottom Line”, pharmaceutical companies spend nearly 97% of their marketing budget to capture initial market share.  This means that 3% of their marketing budget is devoted to on-going efforts, like patient adherence.

As the report’s author, Dr Andree Bates, says:

This costs the global Pharmaceutical Industry an estimated $30 Billion a year. Put another way, increased adherence for a product with approximately $1 Billion in sales would translate to an additional $30 to $40 Million in annual revenue. Plus, since it costs six times more to attract new patients than to retain current patients, increasing the focus on and yields from adherence mean additional money saved and earned.

Pharmaceutical Companies can no longer ignore the hidden value available by increasing patient adherence. Companies who implement strategies to increase adherence and persistence with their products can better face the numerous challenges in today’s market and increase their share of profits.

Now, this blog is not about how pharmaceuticals need to shift their marketing budgets (although it really could be). As any marketing manager knows very well, it is far easier and less contentious to continue the 97/3 split that folks are used to.

It is with this challenge in mind that MEMOTEXT Patient Adherence Solutions and hcCatalyst announced a strategic alliance to deploy a patient adherence solution that is not only self-funding but has been shown to significantly improve patient adherence and increase proper medication usage.

How is this possible?

Rather than fight with how things get done, we decided to leverage the relationship that already exists between doctors, the pharmaceutical industry, and patients. By harnessing that relationship and motivating patients to join our adherence discussions, we are able to offer a program that is funded when patients are adherent and fill their prescriptions.

As Amos Adler, President of MEMOTEXT, says, “MEMOTEXT programs have been able to achieve a retention rate of between 85%-95% and improve patient adherence between 17%-35%. With the addition of hcCatalyst’s Adherence Driver, even better results are expected.”

Would love to hear what you think!

Boxcutters Gem #348 – Don’t pay for adherence when it can be self-funded!

2 Responses to “Can a Patient Adherence Program be Self-Funded?”
  1. david delong says:

    I can only speak about adherence programs funded by pharma. In theory adherence programs should be self-funding – paid for as the script yield goes up due to drug compliance. The problem seems to be that although the program my be self-funding in year 2 or 3 the start-up costs are never recouped and at some point the program is put into a spreadsheet and killed.

    • Michael Wong says:

      Great points, David!

      In our quarter-to-quarter driven business mindset, it is imperative to deliver immediate results. Results 2 or 3 years out just doesn’t “cut the mustard”, so to speak.

      With that in mind, Andy Amos and I basically said, why not? Use what’s there — for example, the already existing relationships and physician detailing programs that pharmaceuticals have with physicians — and measure whether adherence is working every time that patients fill their prescriptions.

      If readers would like more information, please contact Amos at or me at

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