By Betsy Bondurant, CMM, CTE

 

According to Meeting Professionals International (MPI), medical meetings are big business! The healthcare industry is expected to grow by 6.9 percent globally in 2016, and 1 million pharmaceutical and medical meetings are forecast in the U.S. alone this year! Additionally, 86 countries currently require reporting as a result of government regulations and industry codes of ethics. These codes have universal stipulations regarding the types of venues that can be used for regulated meetings, such as "Avoid using renowned or extravagant venues" and "the choice of venues in locations emphasizing leisure and sporting facilities is prohibited." Similarly, regarding hospitality: meals should be "moderate and reasonable as judged by local standards" and "hospitality must not exceed what Healthcare Professionals (HCPs) would normally be prepared to pay for themselves"

 

Because of the continued proliferation of regulations and regulated meetings, there seems to be a shortage of hoteliers and Destination Marketing Organizations (DMOs) with medical sector expertise. Since competition is fierce for this sector, incorporating the following six tactics into your sales strategy will help you demonstrate your knowledge of the unique needs of medical meeting planners.  

1. Be sure you understand some of the regulatory background and basic terminology used by medical meeting planners: Previously referred to as the "Sunshine Act" (so named for shedding light on payments to HCPs), the United States Open Payments Act states that all "payments" or Transfers of Value (TOV) in the form of travel, food, lodging, honorarium, etc., must be reported to the Centers for Medicare & Medicaid Services (CMS), the federal agency that oversees the regulations. These reporting requirements began back in 2014. In order to keep the expenditures for meals modest, pharmaceutical companies developed meal caps, maximum amounts they will pay for breakfast, lunch, dinner and breaks. Unfortunately, in many cases, the corporate meal caps are typically lower than catering menu list prices.
2. There are regulated meetings and non-regulated meetings planned by medical meeting planners. Be realistic about your property. Is it truly a fit for regulated medical meetings, such as HCP Advisory Boards, Clinical Trial Meetings or Symposium, and or is your property more suited to non-regulated pharmaceutical meetings such as sales meetings, product launches or incentive programs?
3. Appreciate that these planners are not being difficult just to be difficult. In fact, they are adhering to government regulations and industry codes of conduct which are being enforced by their internal corporate compliance department. In most instances, the compliance department has to approve the meeting venue for regulated meetings. Additionally, most planners don’t like the restrictive meal caps any more than the hoteliers do, but we all have to figure out how to make them work. 
4. Protecting the company’s Intellectual Property (IP) is another important part of the planning process for medical meetings. This is why you will get requests for a non-compete clause in the contract in order to keep their competitors out of the hotel during their meeting. They may request meeting space with solid walls, so they know that the discussions won’t inadvertently travel outside of the room. Restricting staff access to meeting space is common as well, so that access to the meeting materials is limited. They may request a "do not post," so the company name is not listed on the reader board, which limits the exposure about the company’s presence in the hotel. 
5. Know the language to use and not use when discussing regulated meetings. Terminology in written or verbal communication that highlights luxury, extravagance, deluxe or places an emphasis on leisure activities are negatives to planners looking for appropriate HCP venues. Words such as business, meeting, health and fitness, and secure are much more appealing to planners of these regulated meetings. 
6. Be sure your hotel team knows how to operate regulated meetings. Let the chef know why it is critical to create specific menus that adhere to the corporate meal caps. Communicate the "Transfer of Value" reporting needs with the accounting department, so they can create the detailed invoices your medical clients require. Share with the convention services and catering team why security, containing corporate competitors, and protecting company intellectual property (IP) is so important to planners. 

By incorporating these six strategies into your sales and marketing efforts you will be able to demonstrate your knowledge of this regulated industry to your health care clients. Medical meeting planners want to work with partners who understand their unique issues. If you can be part of the solution, you should be able to increase the amount of business you are getting from this sector. 

 

Resources upon request.