Integrated delivery networks (IDNs) have taken the spotlight in the U.S. healthcare landscape in recent years. Spurred by economic pressures and the Affordable Care Act, these networks are gaining power over healthcare delivery and changing how healthcare purchasing decisions are made. Their core mission? Delivering high-quality care at lower costs.
For pharmaceutical and biotech companies, understanding how to engage with these networks is crucial for commercial success. This brief guide explores how to approach IDNs to expand access to your drug or therapy and drive product uptake.
Why target IDNs?
Today, more than 80% of hospitals are part of an IDN, according to Definitive Healthcare data, illustrating the scale and influence these networks wield in the healthcare landscape. Some well-known examples of top IDNs include HCA Healthcare, CommonSpirit Health, and Ascension Health.
One of the most dramatic changes brought by IDNs is their centralized decision-making structure. Unlike independent hospitals, where treatment and prescribing decisions often rest with individual practitioners or small groups, many IDNs centralize decision-making processes across their facilities. This allows IDNs to standardize protocols, implement unified clinical pathways, and influence formulary decisions at scale.
For pharma companies, navigating this landscape requires understanding and engaging with multiple layers of decision-makers. Key stakeholders within IDNs may include C-suite executives, clinical leaders, pharmacy directors, and procurement managers, each influencing different aspects of care delivery and resource allocation.
Moreover, IDNs often have standardized processes and guidelines that dictate how products are evaluated, adopted, and integrated into clinical practice across their facilities. This usually involves demonstrating not only the clinical efficacy and safety of products to P&T committees but also their ability to integrate seamlessly into existing workflows and contribute to the IDN’s overarching goals, such as reducing costs and improving operational efficiency.
This structured approach contrasts with the more decentralized decision-making seen in smaller hospitals and physician groups, where individual physicians dominate decisions regarding therapy adoption.
Understand key IDN metrics
Understanding the metrics that define an IDN is crucial for pharma companies aiming to engage with these systems. Here’s what you should know before approaching your target IDN:
- Firmographics: Understand basic information like location, size, ownership type, integration level, and key decision-makers such as executives.
- Clinical and quality metrics: Research the IDN’s performance on healthcare quality measures like patient readmission rates, HCAHPS scores, and surgical complication rates.
- Financial performance and reimbursement: Investigate the IDN’s financial health, including net patient revenue, operating expenses, and payor mix.
- Physician network: Understand the IDN’s physician composition, including the number of physicians, their specialties, and other care providers.
- Prescription claims volumes: See prescription volumes for your drug and competitor drugs to identify gaps and plan competitor displacement strategies.
- Medical claims volumes: Look at diagnoses and procedures performed within the network, including volume trends and details like DRG codes, ICD-10 codes, and CPT/HCPCS codes.
- Referral patterns: Analyze the IDN’s referral patterns for specific conditions or procedures.
- Technology adoption history: Research the IDN’s installed technology systems and software.
- Affiliations and GPOs: Determine if the IDN is affiliated with any GPOs and understand the extent to which its affiliations influence pharmaceutical purchasing and supply chain decisions.
Craft your value proposition
Once you’ve researched these metrics, you can confidently approach your target IDN and its key stakeholders armed with insights. For example, does the IDN struggle with high complication rates for specific surgical procedures or patient leakage to other systems for certain conditions?
In a sales conversation, this readiness includes developing a compelling value proposition that resonates with various IDN decision-makers. Your value proposition should clearly articulate how your therapy or drug addresses these specific pain points and priorities. Consider using this formula:
By [solution your product offers], we can help you achieve [desired outcome] through [key benefits your product provides].
For instance, if you know a hospital (or multiple hospitals) within an IDN is reporting higher-than-average readmission rates for patients with diabetic nerve pain, you can use that information to position your drug as a cost-saving measure.
Similarly, you should adapt your approach to different decision-makers within the hierarchy. C-suite executives might be more receptive to data on overall cost savings, while P&T committees would likely require compelling clinical data and real-world evidence that illustrate superior efficacy and safety compared to existing therapies.
Below is a table illustrating various IDN priorities, example value propositions, and key benefits a therapy might offer.
Tailor value propositions to IDN priorities
| IDN priority | Example value proposition | Key benefits |
| Cost control | By offering a [dosage form/administration method] of [therapy], we can help you reduce overall treatment costs for [disease] by [percentage] through [reduced medication waste/shorter treatment duration/fewer hospitalizations]. | Lower drug acquisition costs, improved medication adherence, reduced complication rates |
| Patient outcomes | Our [novel mechanism of action] therapy for [disease] demonstrates a [percentage] improvement in [clinical endpoint] compared to standard treatment, leading to better patient outcomes. | Enhanced efficacy, improved quality of life for patients |
| Hospital readmissions | Our [drug] has been shown to significantly reduce hospital readmissions among [disease] patients by improving [function] and preventing exacerbations. | Reduced hospital readmissions, improved patient stability, decreased healthcare costs |
| Operational efficiency | Our [extended-release drug] simplifies medication adherence for patients and lowers risk of medication errors by reducing the frequency of dosing from [daily] to [weekly], freeing up pharmacy staff time and improving overall workflow efficiency. | Reduced medication dispensing errors, simplified care processes, improved patient compliance, optimized pharmacy staff time |
| Population health management | Our [test] for early detection of [disease] allows you to identify at-risk patients earlier, enabling preventive interventions and potentially reducing future healthcare burden. | Early identification of at-risk patients, preventative care opportunities, reduced overall healthcare costs. |
Find a key opinion leader in the organization
Lastly, identify key opinion leaders (KOL) or influencers within the IDN or care center you’re targeting. KOLs play pivotal roles across various stages of the sales process. Engaging with them allows you to harness their influence to advocate for your therapy within the IDN. They can raise awareness among their peers, affiliates, and facility leaders, helping to build credibility and support for your therapy.
Don’t restrict your search to established KOLs—explore a wide range of clinicians who align well with your goals. This might include physicians recognized for their publications in journals focusing on your therapy’s target diagnosis, or those who manage a significant volume of patients ideally suited for your product.
Learn more
As IDNs continue to grow in influence and scope, their role in shaping healthcare delivery and patient care pathways will likely become even more pronounced. See how healthcare data and intelligence from Definitive Healthcare can help you thrive in this evolving landscape. Sign up for a free demo today.
To learn more about how biopharma can engage HCPs in a consolidating landscape, check out the e-book.
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