Six of the top 10 private equity healthcare deals in 2015 were in services, including outsourcing companies such as contract manufacturing organizations, according to GBI Research.
There are no signs of this trend slowing down. With the increasing costs for drug development and continued globalization of clinical research, this activity will continue.
We are engaging with a growing number of CROs who are realizing their current site payment processes do not provide an accurate and aggregate record of financial transactions. These CROs are preparing for the due diligence that is inevitable with investment activity or acquisition by centralizing their site grant payment activity.
These organizations are coming to a scary realization that the manual processes to support this effort, while may “get the job done” are risky, with many opportunities for errors, inconsistencies and have no ability to provide analytics to identify trends, plan and budget. The financial teams see this vulnerability and are looking to get ahead of what could impact an opportunity for their business to grow.
Site grant payments that are recorded via spreadsheets and manual processes are sloppy, error prone and lack the data needed to gain visibility and control into this expenditure. With a centralized automated payment solution, CROs gain a comprehensive, clean record of financial transactions with the ability to then report on this activity for a clearer picture of their financials.
Additionally, the “residual” impact of centralizing site payment activity has been proven to optimize cash flow, improve site satisfaction and empower the CRO study team to focus on the study with little administrative distractions related to fielding site calls about payment status.
It is critical that CROs take a proactive stance to optimizing site payment process and recognize the value that this can bring to their entire organization – from finance through project management.