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Untapped Opportunities for Actuaries in Health Care: Market Research Summary Report to Membership
Transcript
Page 1: Untapped Opportunities Health

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Untapped Opportunities for Actuaries inHealth Care Market Research Summary Report

to Membership

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

With health reform a reality and sweeping changes to the health care industry on the horizon this is a perfect time to

assess the opportunities for health actuaries and how well our skill sets match them The Society of Actuaries (SOA) has

recently done just that This report presents the results of a market research study commissioned by the SOA as part of

its strategic initiative to explore Untapped Opportunities for Actuaries in the health care industry This initiative was first

presented to the SOArsquos Board of Directors in 2007 based on results from a survey of Health Section membership Work

continued with a series of interviews with chief health actuaries and continued into 2008 with interviews of actuaries

(and their managers) who had made a mid-career transition into health practice An article in the JuneJuly 2009 issue

of The Actuary provides a summary of the work done through mid-2009

In early 2009 the SOA Leadership Team approved an external market research project to give a more in-depth analysis

of potential roles for actuaries in the broader health care industry After an extensive Request for Proposal (RFP) process

the SOA selected the firm GfK Healthcare to perform the study With SOA volunteer and staff assistance GfK began

work in August 2009 and concluded in January 2010

In 2010 the SOA recommitted this initiative to its strategic portfolio and a work group has been meeting regularly

to fuse the market research results with their own experience and strategic thought in order to recommend actions

that the SOA should consider to help actuaries tap into the broader health care market

This report is an executive summary of the results of GfKrsquos analysis GfKrsquos final report is provided as an appendix to

this report This executive summary presents high level implications to you as an actuary as you work through your

career We have tried to present these

implications as they related to a variety ofsituationsmdashcareer status business skills

technical skills and SOA-related activities

At the very highest level the market re-

search results have made clear that we

Introduction

HEALTH ACTUARIAL VALUE PROPOSITION

n Actuaries have a neutral and objective voice

n We are excellent with modeling and datamdashnot just the

technical aspects but also our level of sophistication rigor

discipline and transparency

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Details of the market research can be found in GfKrsquos report included as the appendix of this report We have pulled

out the key findings as they relate to you a practicing actuary or candidate and organized them into focused areas

of interest Career Opportunities Skills Needed Research Basic Education Continuing Professional Development

and the Branding of the Health Actuary

CAREER OPPORTUNITIES

Nontraditional employers and roles

n The market research points to several areas that have had limited or no actuarial representation in the

past but appear to be a good fit for our skill set These areas include

bull management consultants (who work on large-scale health care projects)

bull wellness and disease management companies

bull clinical outcomes organizations

bull comparative effectiveness research firms bull providersmdashparticularly large hospital systems and

bull health care analytics groups within health plans

n Actuaries who have taken on nontraditional roles have had to stretch out of their comfort zones and

adapt quickly to seize these opportunities The health care industry is changing and actuaries will be

needed to analyze more than just financial data Models will be needed to assess health outcomes

compliance quality of care comparative effectiveness research and clinical study design

n It should be noted that roles at these organizations might not be full-time on-staff actuarial roles Instead

actuaries working for consulting firms may take on project-based opportunities to fulfill the needs of

these companies Alternatively an actuary might be hired to do a multifaceted role at a company for

example the actuaryrsquos job description might include marketing client management or financial duties

in addition to analytical (traditional actuarial) work

Implications to YOU as an Actuary

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

n Many health care executives are looking for analytical professionals with extensive experience in the

health care industry Actuaries with such a background would be welcomed into such organizations as

health care management consulting disease management and wellness companies hospital systems

or pharmacy benefits managers (PBMs) This is especially true if they can also bring a broad base of

business skills such as big picture thinking flexibility adaptability and strong communication skills

Barriers to new opportunities

n

Knowledge of health actuaries is generally limited except by those working for health plans Health careexecutives were very interested in a professional who has the analytical skills of an actuary combined

with experience in health care We are working to find ways to brand ldquoThe Health Actuaryrdquo to the

broader health industry

n The market research confirmed the perception that actuaries command higher salaries than other

similarly experienced professionals The study did not include a comprehensive analysis or survey of

compensation so although we cannot prove or disprove this perception we do need to be aware

that the perception exists Any major career change will come with risks and compensation levels (pres-ent and future) should be considered when evaluating all of the risks involved in change Just as our

organizations evaluate risks we professionals must continually perform our own personal enterprise

risk management assessment

n Actuaries must compete with other professionals for these nontraditional roles Some of these compet-

ing professionals are health economists statisticians (with PhDs) MBAs public health professionals and

public policy professionals

SKILLS NEEDED

Technical skills

The market research confirmed the need to develop or enhance several skill sets to compete in nontraditional

areas These skills include

n Clinical knowledgemdashunderstanding of diseases especially chronic diseases and especially related to

alternative treatments and drugs

n Study and clinical trial designmdashdeveloping the statistical rigor and understanding of studies that can

affect treatment of conditions and outcomes and comparative effectiveness research study design

n Accountability for resultsmdashensuring a thorough understanding of how our results will be relied upon

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Business skills

Executives interviewed and surveyed in the market research study pointed to several key business skills that they seek

in any professional working on forecasting and analytics in their organizations These skills align with other studies

that the SOA has conducted proving that the health care marketplace is seeking the same skills as other markets

where actuaries work Health care executives want analytical professionals with the following skills

n Strategic thinkingmdashthe ability to think about the bigger picture of an organization is a skill that health care

executives say is critically important and is also currently lacking in their existing staffs Actuaries who can

demonstrate abilities as both detailed analysts and strategic thinkers will have the greatest potential to

develop in a nontraditional role

n Problem-solving abilitymdashactuaries are typically excellent problem solvers and while health care execu-

tives find this to be among the most important skills it is also found among existing professionals in

nontraditional health areas Actuaries will need to demonstrate the value of our unique training and

perspective

n Communication skillsmdashoral and especially written communication

n

Decision-making skillsmdashthe need to be flexible and adaptive and not necessarily always have theldquorightrdquoanswer

SOA RESEARCH

SOA health research has historically been executed with an

actuarial audience in mind consideration of the downstream

value of our work to the broader health care industry has been

secondary Yet our research has considerable value to a wider

audiencemdashfor example our 2007 report on health risk assess-

ment tools and our 2009 Quality amp Efficiency tool inventory

The Untapped Opportunities Work Group has allocated a signif-

icant portion of its budget to promoting actuarial research and

funding researchers to attend and present their results at new

forums In addition to sponsoring research on traditional actuarial

topics we are targeting new areas that will appeal to academics

and health professionals with the ultimate goal of submitting our

work to broad-reaching peer-reviewed health care journals

The SOA is committed to helping get the word out about our

UNTAPPED OPPORTUNITIES

WORK GROUP

Jim Toole FSA CERA MAAA Chair

Alice Rosenblatt FSA CERA MAAA

SOA Board and Strategic Team Ac-

countability

Bob Cosway FSA MAAA

Kate Fitch RN MEd

Jennifer Gillespie FSA MAAA

Francois-Joseph Poirier FSA FCIA

Mayur Shah MA

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

BASIC EDUCATION

The health-track exam committees are constantly working to revise the format and content of the Modules and

Fellowship exams to reflect current topics The FSA Modules especially allow for considerable flexibility to introduce

cutting edge material As an example the Module committees are planning to add more material on the clinical

aspects of common chronic diseases More clinical education will be added to the modules and syllabi over time

CONTINUING PROFESSIONAL DEVELOPMENT

One of the most logical outcomes of the Untapped Opportunities initiative will be educational opportunities that

provide actuaries with the cutting edge knowledgemdashboth technical and soft-skills-focusedmdashto enable them to

succeed in nontraditional areas in the health care industry An outcome immediately available for implementation

will be to offer sessions at meetings and webcasts to educate actuaries on topics that the market research has

uncovered such as clinical topics and study design In fact the upcoming SOA lsquo10 Health Meeting (June 28ndash30

in Orlando) has a planned session on study design

We are also exploring more comprehensive outlets for health care education At this yearrsquos Health Pricing and

Valuation Boot Camps we will offer a half-day session called ldquoMedical School for Actuariesrdquo in which a physician

will provide an in-depth education on several key chronic conditions that actuaries may encounter This sort of

clinical training will hopefully be continued in future meetings and webcasts since there is considerable interest

in this particular topic The work group has discussed other possible CPD ideas including more collaborations

with other organizations for symposia and seminars

BRANDING OF THE HEALTH ACTUARY

As we develop new research and education opportunities we will be looking for ways to expand the reach ofthese activities to include professionals outside the traditional actuarial profession This expansion will enable

ldquoThe Health Actuaryrdquo to become known to professionals all over the broader health care industry

This brand expansion might come from partnerships with other organizations to deliver robust educational

content For example in the past we have joined with the DMAA The Care Continuum Alliance to co-sponsor

the Predictive Modeling Symposium bringing disease maagement professionals together with actuaries for a

common networking and educational event

Brand expansion might also come from presenting our thought leadership at conferences or in publications of

other organizations and from continuing to bring non-actuarial thought leaders to our conferences and publi-

cations The SOArsquos health meeting each year brings many professionals to speak and these sessions are highly

rated proving that there is great value in enabling actuaries to hear from the broader industry

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Phase 2mdashQualitative research

During Phase 2 GfK interviewed non-actuarial executives in various health care sectors These interviews identified

future needs roles and employers for forecasting and analytic professions These interviews helped set the frame-

work for the Phase 3 Quantitative study design

Phase 3mdashQuantitative research

Phase 3 consisted of a detailed survey completed by 224 executives recruiters and hiring managers in various traditional

and nontraditional health care companies The respondents were asked questions about

n Current roles in their health care analytics and forecasting environment

n The importance and performance of current and desired staff on key attributes

n Other questions related to roles in their organizations regarding experience education compensation and

anticipated shortages

n Perceptions of actuaries

Final report

GfK issued reports on all the phases of the projects with a final report summarizing all findings The final report is

included as the appendix to this document The interim reports are available upon request to SOA staff (please contact

Jill Leprich jleprichsoaorg)

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Appendix Market Research Results Report from GfK Healthcare

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GfK Healthcare Marketing research built for youSM February 2010

Exploring OpportunitiesFor ActuariesPrepared for Society Of ActuariesFebruary 18 2010

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2

GfK Healthcare Marketing research built for youSM February 2010

AGENDA

1 Introductions

2

5 Q amp A

Research Objectives

Study Design

Key Findings

Conclusions and Recommendations

3

4

6 Appendix ndash Detailed Phase 3 Study Findings (Quantitative)

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3

GfK Healthcare Marketing research built for youSM February 2010

Introductions1

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GfK Healthcare Marketing research built for youSM February 2010

Introductions

Susan R Wild Senior Vice President

983085 Sue assisted in the research design supported the research team coordinatedteleconferences debriefs etc to ensure all research objectives were met

Linda Krank Vice President Custom Research

983085 Linda was responsible for the quantitative portion of the research study She designedthe quantitative questionnaire provided oversight for the fielding and analyzed the

quantitative findings To ensure seamless execution from the qualitative to thequantitative research Linda provided input into the qualitative discussion flow andobserved a portion of qualitative interviews

Katie Fordyce Associate Vice President Research and Consulting

983085 Katie provided complete oversight and execution of the qualitative interviews She wrotethe screeners and discussion guides managed the recruitment of respondentsconducted the interviews and analyzed the qualitative findings In addition Katieprovided insight into the quantitative questionnaire

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5

GfK Healthcare Marketing research built for youSM February 2010

Research ObjectivesStudy Design

2

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6

GfK Healthcare Marketing research built for youSM February 2010

Research Objectives

The Society of Actuaries is looking to expand opportunities for actuariesoutside traditional roles

983085 Focus was on the US healthcare industry which is one of the fastest growing

segments of the economy

The SOA has commissioned marketing research to examine theuntapped opportunities for actuaries in healthcare

The overarching strategic objective of this research program is to

expand job opportunities for members of the SOA within the healthcareindustry

983085 Additional objectives include Define the skills and education required to manage healthcare forecastinganalytics and

identify gaps or perceived gaps in these skills and educational requirements

Determine if perceptions differ across disciplines and industry groups

Uncover potential future hiring needs and the skills needed to fill them Identify perceptions of credentialed actuaries and how these perceptions may impact their

perceived value for key healthcare positions

Explore specific reasons for perceptions of actuaries across industry groups

Determine the degree to which healthcare experience changes the perceived value of actuaries Assess the salary potential for individuals hired to undertake healthcare forecastinganalytics

and the specific earning potential of actuaries who fill these positions

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7

GfK Healthcare Marketing research built for youSM February 2010

Study Design

GfK Healthcare conducted multiple phases of research utilizing bothqualitative and quantitative methodologies

983085 Each phase allowed us to explore the untapped opportunities in the healthcare industry

983085 Initial phases of research assisted in the study design for subsequent phases

Phase Type ofResearch

RespondentTypes

Sample Size

Phase 1 Qualitative Actuarial Thought Leaders n= 14

Phase 1b Qualitative Healthcare Recruiters n=3

Phase 2 Qualitative Hiring Managers n=30

Phase 3 Quantitative Practicing Actuaries

Healthcare Recruiters

Hiring Managers

n=224

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GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 2: Untapped Opportunities Health

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

With health reform a reality and sweeping changes to the health care industry on the horizon this is a perfect time to

assess the opportunities for health actuaries and how well our skill sets match them The Society of Actuaries (SOA) has

recently done just that This report presents the results of a market research study commissioned by the SOA as part of

its strategic initiative to explore Untapped Opportunities for Actuaries in the health care industry This initiative was first

presented to the SOArsquos Board of Directors in 2007 based on results from a survey of Health Section membership Work

continued with a series of interviews with chief health actuaries and continued into 2008 with interviews of actuaries

(and their managers) who had made a mid-career transition into health practice An article in the JuneJuly 2009 issue

of The Actuary provides a summary of the work done through mid-2009

In early 2009 the SOA Leadership Team approved an external market research project to give a more in-depth analysis

of potential roles for actuaries in the broader health care industry After an extensive Request for Proposal (RFP) process

the SOA selected the firm GfK Healthcare to perform the study With SOA volunteer and staff assistance GfK began

work in August 2009 and concluded in January 2010

In 2010 the SOA recommitted this initiative to its strategic portfolio and a work group has been meeting regularly

to fuse the market research results with their own experience and strategic thought in order to recommend actions

that the SOA should consider to help actuaries tap into the broader health care market

This report is an executive summary of the results of GfKrsquos analysis GfKrsquos final report is provided as an appendix to

this report This executive summary presents high level implications to you as an actuary as you work through your

career We have tried to present these

implications as they related to a variety ofsituationsmdashcareer status business skills

technical skills and SOA-related activities

At the very highest level the market re-

search results have made clear that we

Introduction

HEALTH ACTUARIAL VALUE PROPOSITION

n Actuaries have a neutral and objective voice

n We are excellent with modeling and datamdashnot just the

technical aspects but also our level of sophistication rigor

discipline and transparency

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Details of the market research can be found in GfKrsquos report included as the appendix of this report We have pulled

out the key findings as they relate to you a practicing actuary or candidate and organized them into focused areas

of interest Career Opportunities Skills Needed Research Basic Education Continuing Professional Development

and the Branding of the Health Actuary

CAREER OPPORTUNITIES

Nontraditional employers and roles

n The market research points to several areas that have had limited or no actuarial representation in the

past but appear to be a good fit for our skill set These areas include

bull management consultants (who work on large-scale health care projects)

bull wellness and disease management companies

bull clinical outcomes organizations

bull comparative effectiveness research firms bull providersmdashparticularly large hospital systems and

bull health care analytics groups within health plans

n Actuaries who have taken on nontraditional roles have had to stretch out of their comfort zones and

adapt quickly to seize these opportunities The health care industry is changing and actuaries will be

needed to analyze more than just financial data Models will be needed to assess health outcomes

compliance quality of care comparative effectiveness research and clinical study design

n It should be noted that roles at these organizations might not be full-time on-staff actuarial roles Instead

actuaries working for consulting firms may take on project-based opportunities to fulfill the needs of

these companies Alternatively an actuary might be hired to do a multifaceted role at a company for

example the actuaryrsquos job description might include marketing client management or financial duties

in addition to analytical (traditional actuarial) work

Implications to YOU as an Actuary

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

n Many health care executives are looking for analytical professionals with extensive experience in the

health care industry Actuaries with such a background would be welcomed into such organizations as

health care management consulting disease management and wellness companies hospital systems

or pharmacy benefits managers (PBMs) This is especially true if they can also bring a broad base of

business skills such as big picture thinking flexibility adaptability and strong communication skills

Barriers to new opportunities

n

Knowledge of health actuaries is generally limited except by those working for health plans Health careexecutives were very interested in a professional who has the analytical skills of an actuary combined

with experience in health care We are working to find ways to brand ldquoThe Health Actuaryrdquo to the

broader health industry

n The market research confirmed the perception that actuaries command higher salaries than other

similarly experienced professionals The study did not include a comprehensive analysis or survey of

compensation so although we cannot prove or disprove this perception we do need to be aware

that the perception exists Any major career change will come with risks and compensation levels (pres-ent and future) should be considered when evaluating all of the risks involved in change Just as our

organizations evaluate risks we professionals must continually perform our own personal enterprise

risk management assessment

n Actuaries must compete with other professionals for these nontraditional roles Some of these compet-

ing professionals are health economists statisticians (with PhDs) MBAs public health professionals and

public policy professionals

SKILLS NEEDED

Technical skills

The market research confirmed the need to develop or enhance several skill sets to compete in nontraditional

areas These skills include

n Clinical knowledgemdashunderstanding of diseases especially chronic diseases and especially related to

alternative treatments and drugs

n Study and clinical trial designmdashdeveloping the statistical rigor and understanding of studies that can

affect treatment of conditions and outcomes and comparative effectiveness research study design

n Accountability for resultsmdashensuring a thorough understanding of how our results will be relied upon

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Business skills

Executives interviewed and surveyed in the market research study pointed to several key business skills that they seek

in any professional working on forecasting and analytics in their organizations These skills align with other studies

that the SOA has conducted proving that the health care marketplace is seeking the same skills as other markets

where actuaries work Health care executives want analytical professionals with the following skills

n Strategic thinkingmdashthe ability to think about the bigger picture of an organization is a skill that health care

executives say is critically important and is also currently lacking in their existing staffs Actuaries who can

demonstrate abilities as both detailed analysts and strategic thinkers will have the greatest potential to

develop in a nontraditional role

n Problem-solving abilitymdashactuaries are typically excellent problem solvers and while health care execu-

tives find this to be among the most important skills it is also found among existing professionals in

nontraditional health areas Actuaries will need to demonstrate the value of our unique training and

perspective

n Communication skillsmdashoral and especially written communication

n

Decision-making skillsmdashthe need to be flexible and adaptive and not necessarily always have theldquorightrdquoanswer

SOA RESEARCH

SOA health research has historically been executed with an

actuarial audience in mind consideration of the downstream

value of our work to the broader health care industry has been

secondary Yet our research has considerable value to a wider

audiencemdashfor example our 2007 report on health risk assess-

ment tools and our 2009 Quality amp Efficiency tool inventory

The Untapped Opportunities Work Group has allocated a signif-

icant portion of its budget to promoting actuarial research and

funding researchers to attend and present their results at new

forums In addition to sponsoring research on traditional actuarial

topics we are targeting new areas that will appeal to academics

and health professionals with the ultimate goal of submitting our

work to broad-reaching peer-reviewed health care journals

The SOA is committed to helping get the word out about our

UNTAPPED OPPORTUNITIES

WORK GROUP

Jim Toole FSA CERA MAAA Chair

Alice Rosenblatt FSA CERA MAAA

SOA Board and Strategic Team Ac-

countability

Bob Cosway FSA MAAA

Kate Fitch RN MEd

Jennifer Gillespie FSA MAAA

Francois-Joseph Poirier FSA FCIA

Mayur Shah MA

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

BASIC EDUCATION

The health-track exam committees are constantly working to revise the format and content of the Modules and

Fellowship exams to reflect current topics The FSA Modules especially allow for considerable flexibility to introduce

cutting edge material As an example the Module committees are planning to add more material on the clinical

aspects of common chronic diseases More clinical education will be added to the modules and syllabi over time

CONTINUING PROFESSIONAL DEVELOPMENT

One of the most logical outcomes of the Untapped Opportunities initiative will be educational opportunities that

provide actuaries with the cutting edge knowledgemdashboth technical and soft-skills-focusedmdashto enable them to

succeed in nontraditional areas in the health care industry An outcome immediately available for implementation

will be to offer sessions at meetings and webcasts to educate actuaries on topics that the market research has

uncovered such as clinical topics and study design In fact the upcoming SOA lsquo10 Health Meeting (June 28ndash30

in Orlando) has a planned session on study design

We are also exploring more comprehensive outlets for health care education At this yearrsquos Health Pricing and

Valuation Boot Camps we will offer a half-day session called ldquoMedical School for Actuariesrdquo in which a physician

will provide an in-depth education on several key chronic conditions that actuaries may encounter This sort of

clinical training will hopefully be continued in future meetings and webcasts since there is considerable interest

in this particular topic The work group has discussed other possible CPD ideas including more collaborations

with other organizations for symposia and seminars

BRANDING OF THE HEALTH ACTUARY

As we develop new research and education opportunities we will be looking for ways to expand the reach ofthese activities to include professionals outside the traditional actuarial profession This expansion will enable

ldquoThe Health Actuaryrdquo to become known to professionals all over the broader health care industry

This brand expansion might come from partnerships with other organizations to deliver robust educational

content For example in the past we have joined with the DMAA The Care Continuum Alliance to co-sponsor

the Predictive Modeling Symposium bringing disease maagement professionals together with actuaries for a

common networking and educational event

Brand expansion might also come from presenting our thought leadership at conferences or in publications of

other organizations and from continuing to bring non-actuarial thought leaders to our conferences and publi-

cations The SOArsquos health meeting each year brings many professionals to speak and these sessions are highly

rated proving that there is great value in enabling actuaries to hear from the broader industry

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Phase 2mdashQualitative research

During Phase 2 GfK interviewed non-actuarial executives in various health care sectors These interviews identified

future needs roles and employers for forecasting and analytic professions These interviews helped set the frame-

work for the Phase 3 Quantitative study design

Phase 3mdashQuantitative research

Phase 3 consisted of a detailed survey completed by 224 executives recruiters and hiring managers in various traditional

and nontraditional health care companies The respondents were asked questions about

n Current roles in their health care analytics and forecasting environment

n The importance and performance of current and desired staff on key attributes

n Other questions related to roles in their organizations regarding experience education compensation and

anticipated shortages

n Perceptions of actuaries

Final report

GfK issued reports on all the phases of the projects with a final report summarizing all findings The final report is

included as the appendix to this document The interim reports are available upon request to SOA staff (please contact

Jill Leprich jleprichsoaorg)

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Appendix Market Research Results Report from GfK Healthcare

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GfK Healthcare Marketing research built for youSM February 2010

Exploring OpportunitiesFor ActuariesPrepared for Society Of ActuariesFebruary 18 2010

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2

GfK Healthcare Marketing research built for youSM February 2010

AGENDA

1 Introductions

2

5 Q amp A

Research Objectives

Study Design

Key Findings

Conclusions and Recommendations

3

4

6 Appendix ndash Detailed Phase 3 Study Findings (Quantitative)

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3

GfK Healthcare Marketing research built for youSM February 2010

Introductions1

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4

GfK Healthcare Marketing research built for youSM February 2010

Introductions

Susan R Wild Senior Vice President

983085 Sue assisted in the research design supported the research team coordinatedteleconferences debriefs etc to ensure all research objectives were met

Linda Krank Vice President Custom Research

983085 Linda was responsible for the quantitative portion of the research study She designedthe quantitative questionnaire provided oversight for the fielding and analyzed the

quantitative findings To ensure seamless execution from the qualitative to thequantitative research Linda provided input into the qualitative discussion flow andobserved a portion of qualitative interviews

Katie Fordyce Associate Vice President Research and Consulting

983085 Katie provided complete oversight and execution of the qualitative interviews She wrotethe screeners and discussion guides managed the recruitment of respondentsconducted the interviews and analyzed the qualitative findings In addition Katieprovided insight into the quantitative questionnaire

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5

GfK Healthcare Marketing research built for youSM February 2010

Research ObjectivesStudy Design

2

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6

GfK Healthcare Marketing research built for youSM February 2010

Research Objectives

The Society of Actuaries is looking to expand opportunities for actuariesoutside traditional roles

983085 Focus was on the US healthcare industry which is one of the fastest growing

segments of the economy

The SOA has commissioned marketing research to examine theuntapped opportunities for actuaries in healthcare

The overarching strategic objective of this research program is to

expand job opportunities for members of the SOA within the healthcareindustry

983085 Additional objectives include Define the skills and education required to manage healthcare forecastinganalytics and

identify gaps or perceived gaps in these skills and educational requirements

Determine if perceptions differ across disciplines and industry groups

Uncover potential future hiring needs and the skills needed to fill them Identify perceptions of credentialed actuaries and how these perceptions may impact their

perceived value for key healthcare positions

Explore specific reasons for perceptions of actuaries across industry groups

Determine the degree to which healthcare experience changes the perceived value of actuaries Assess the salary potential for individuals hired to undertake healthcare forecastinganalytics

and the specific earning potential of actuaries who fill these positions

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7

GfK Healthcare Marketing research built for youSM February 2010

Study Design

GfK Healthcare conducted multiple phases of research utilizing bothqualitative and quantitative methodologies

983085 Each phase allowed us to explore the untapped opportunities in the healthcare industry

983085 Initial phases of research assisted in the study design for subsequent phases

Phase Type ofResearch

RespondentTypes

Sample Size

Phase 1 Qualitative Actuarial Thought Leaders n= 14

Phase 1b Qualitative Healthcare Recruiters n=3

Phase 2 Qualitative Hiring Managers n=30

Phase 3 Quantitative Practicing Actuaries

Healthcare Recruiters

Hiring Managers

n=224

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8

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 3: Untapped Opportunities Health

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Details of the market research can be found in GfKrsquos report included as the appendix of this report We have pulled

out the key findings as they relate to you a practicing actuary or candidate and organized them into focused areas

of interest Career Opportunities Skills Needed Research Basic Education Continuing Professional Development

and the Branding of the Health Actuary

CAREER OPPORTUNITIES

Nontraditional employers and roles

n The market research points to several areas that have had limited or no actuarial representation in the

past but appear to be a good fit for our skill set These areas include

bull management consultants (who work on large-scale health care projects)

bull wellness and disease management companies

bull clinical outcomes organizations

bull comparative effectiveness research firms bull providersmdashparticularly large hospital systems and

bull health care analytics groups within health plans

n Actuaries who have taken on nontraditional roles have had to stretch out of their comfort zones and

adapt quickly to seize these opportunities The health care industry is changing and actuaries will be

needed to analyze more than just financial data Models will be needed to assess health outcomes

compliance quality of care comparative effectiveness research and clinical study design

n It should be noted that roles at these organizations might not be full-time on-staff actuarial roles Instead

actuaries working for consulting firms may take on project-based opportunities to fulfill the needs of

these companies Alternatively an actuary might be hired to do a multifaceted role at a company for

example the actuaryrsquos job description might include marketing client management or financial duties

in addition to analytical (traditional actuarial) work

Implications to YOU as an Actuary

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

n Many health care executives are looking for analytical professionals with extensive experience in the

health care industry Actuaries with such a background would be welcomed into such organizations as

health care management consulting disease management and wellness companies hospital systems

or pharmacy benefits managers (PBMs) This is especially true if they can also bring a broad base of

business skills such as big picture thinking flexibility adaptability and strong communication skills

Barriers to new opportunities

n

Knowledge of health actuaries is generally limited except by those working for health plans Health careexecutives were very interested in a professional who has the analytical skills of an actuary combined

with experience in health care We are working to find ways to brand ldquoThe Health Actuaryrdquo to the

broader health industry

n The market research confirmed the perception that actuaries command higher salaries than other

similarly experienced professionals The study did not include a comprehensive analysis or survey of

compensation so although we cannot prove or disprove this perception we do need to be aware

that the perception exists Any major career change will come with risks and compensation levels (pres-ent and future) should be considered when evaluating all of the risks involved in change Just as our

organizations evaluate risks we professionals must continually perform our own personal enterprise

risk management assessment

n Actuaries must compete with other professionals for these nontraditional roles Some of these compet-

ing professionals are health economists statisticians (with PhDs) MBAs public health professionals and

public policy professionals

SKILLS NEEDED

Technical skills

The market research confirmed the need to develop or enhance several skill sets to compete in nontraditional

areas These skills include

n Clinical knowledgemdashunderstanding of diseases especially chronic diseases and especially related to

alternative treatments and drugs

n Study and clinical trial designmdashdeveloping the statistical rigor and understanding of studies that can

affect treatment of conditions and outcomes and comparative effectiveness research study design

n Accountability for resultsmdashensuring a thorough understanding of how our results will be relied upon

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Business skills

Executives interviewed and surveyed in the market research study pointed to several key business skills that they seek

in any professional working on forecasting and analytics in their organizations These skills align with other studies

that the SOA has conducted proving that the health care marketplace is seeking the same skills as other markets

where actuaries work Health care executives want analytical professionals with the following skills

n Strategic thinkingmdashthe ability to think about the bigger picture of an organization is a skill that health care

executives say is critically important and is also currently lacking in their existing staffs Actuaries who can

demonstrate abilities as both detailed analysts and strategic thinkers will have the greatest potential to

develop in a nontraditional role

n Problem-solving abilitymdashactuaries are typically excellent problem solvers and while health care execu-

tives find this to be among the most important skills it is also found among existing professionals in

nontraditional health areas Actuaries will need to demonstrate the value of our unique training and

perspective

n Communication skillsmdashoral and especially written communication

n

Decision-making skillsmdashthe need to be flexible and adaptive and not necessarily always have theldquorightrdquoanswer

SOA RESEARCH

SOA health research has historically been executed with an

actuarial audience in mind consideration of the downstream

value of our work to the broader health care industry has been

secondary Yet our research has considerable value to a wider

audiencemdashfor example our 2007 report on health risk assess-

ment tools and our 2009 Quality amp Efficiency tool inventory

The Untapped Opportunities Work Group has allocated a signif-

icant portion of its budget to promoting actuarial research and

funding researchers to attend and present their results at new

forums In addition to sponsoring research on traditional actuarial

topics we are targeting new areas that will appeal to academics

and health professionals with the ultimate goal of submitting our

work to broad-reaching peer-reviewed health care journals

The SOA is committed to helping get the word out about our

UNTAPPED OPPORTUNITIES

WORK GROUP

Jim Toole FSA CERA MAAA Chair

Alice Rosenblatt FSA CERA MAAA

SOA Board and Strategic Team Ac-

countability

Bob Cosway FSA MAAA

Kate Fitch RN MEd

Jennifer Gillespie FSA MAAA

Francois-Joseph Poirier FSA FCIA

Mayur Shah MA

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

BASIC EDUCATION

The health-track exam committees are constantly working to revise the format and content of the Modules and

Fellowship exams to reflect current topics The FSA Modules especially allow for considerable flexibility to introduce

cutting edge material As an example the Module committees are planning to add more material on the clinical

aspects of common chronic diseases More clinical education will be added to the modules and syllabi over time

CONTINUING PROFESSIONAL DEVELOPMENT

One of the most logical outcomes of the Untapped Opportunities initiative will be educational opportunities that

provide actuaries with the cutting edge knowledgemdashboth technical and soft-skills-focusedmdashto enable them to

succeed in nontraditional areas in the health care industry An outcome immediately available for implementation

will be to offer sessions at meetings and webcasts to educate actuaries on topics that the market research has

uncovered such as clinical topics and study design In fact the upcoming SOA lsquo10 Health Meeting (June 28ndash30

in Orlando) has a planned session on study design

We are also exploring more comprehensive outlets for health care education At this yearrsquos Health Pricing and

Valuation Boot Camps we will offer a half-day session called ldquoMedical School for Actuariesrdquo in which a physician

will provide an in-depth education on several key chronic conditions that actuaries may encounter This sort of

clinical training will hopefully be continued in future meetings and webcasts since there is considerable interest

in this particular topic The work group has discussed other possible CPD ideas including more collaborations

with other organizations for symposia and seminars

BRANDING OF THE HEALTH ACTUARY

As we develop new research and education opportunities we will be looking for ways to expand the reach ofthese activities to include professionals outside the traditional actuarial profession This expansion will enable

ldquoThe Health Actuaryrdquo to become known to professionals all over the broader health care industry

This brand expansion might come from partnerships with other organizations to deliver robust educational

content For example in the past we have joined with the DMAA The Care Continuum Alliance to co-sponsor

the Predictive Modeling Symposium bringing disease maagement professionals together with actuaries for a

common networking and educational event

Brand expansion might also come from presenting our thought leadership at conferences or in publications of

other organizations and from continuing to bring non-actuarial thought leaders to our conferences and publi-

cations The SOArsquos health meeting each year brings many professionals to speak and these sessions are highly

rated proving that there is great value in enabling actuaries to hear from the broader industry

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Phase 2mdashQualitative research

During Phase 2 GfK interviewed non-actuarial executives in various health care sectors These interviews identified

future needs roles and employers for forecasting and analytic professions These interviews helped set the frame-

work for the Phase 3 Quantitative study design

Phase 3mdashQuantitative research

Phase 3 consisted of a detailed survey completed by 224 executives recruiters and hiring managers in various traditional

and nontraditional health care companies The respondents were asked questions about

n Current roles in their health care analytics and forecasting environment

n The importance and performance of current and desired staff on key attributes

n Other questions related to roles in their organizations regarding experience education compensation and

anticipated shortages

n Perceptions of actuaries

Final report

GfK issued reports on all the phases of the projects with a final report summarizing all findings The final report is

included as the appendix to this document The interim reports are available upon request to SOA staff (please contact

Jill Leprich jleprichsoaorg)

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Appendix Market Research Results Report from GfK Healthcare

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GfK Healthcare Marketing research built for youSM February 2010

Exploring OpportunitiesFor ActuariesPrepared for Society Of ActuariesFebruary 18 2010

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2

GfK Healthcare Marketing research built for youSM February 2010

AGENDA

1 Introductions

2

5 Q amp A

Research Objectives

Study Design

Key Findings

Conclusions and Recommendations

3

4

6 Appendix ndash Detailed Phase 3 Study Findings (Quantitative)

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3

GfK Healthcare Marketing research built for youSM February 2010

Introductions1

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4

GfK Healthcare Marketing research built for youSM February 2010

Introductions

Susan R Wild Senior Vice President

983085 Sue assisted in the research design supported the research team coordinatedteleconferences debriefs etc to ensure all research objectives were met

Linda Krank Vice President Custom Research

983085 Linda was responsible for the quantitative portion of the research study She designedthe quantitative questionnaire provided oversight for the fielding and analyzed the

quantitative findings To ensure seamless execution from the qualitative to thequantitative research Linda provided input into the qualitative discussion flow andobserved a portion of qualitative interviews

Katie Fordyce Associate Vice President Research and Consulting

983085 Katie provided complete oversight and execution of the qualitative interviews She wrotethe screeners and discussion guides managed the recruitment of respondentsconducted the interviews and analyzed the qualitative findings In addition Katieprovided insight into the quantitative questionnaire

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5

GfK Healthcare Marketing research built for youSM February 2010

Research ObjectivesStudy Design

2

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6

GfK Healthcare Marketing research built for youSM February 2010

Research Objectives

The Society of Actuaries is looking to expand opportunities for actuariesoutside traditional roles

983085 Focus was on the US healthcare industry which is one of the fastest growing

segments of the economy

The SOA has commissioned marketing research to examine theuntapped opportunities for actuaries in healthcare

The overarching strategic objective of this research program is to

expand job opportunities for members of the SOA within the healthcareindustry

983085 Additional objectives include Define the skills and education required to manage healthcare forecastinganalytics and

identify gaps or perceived gaps in these skills and educational requirements

Determine if perceptions differ across disciplines and industry groups

Uncover potential future hiring needs and the skills needed to fill them Identify perceptions of credentialed actuaries and how these perceptions may impact their

perceived value for key healthcare positions

Explore specific reasons for perceptions of actuaries across industry groups

Determine the degree to which healthcare experience changes the perceived value of actuaries Assess the salary potential for individuals hired to undertake healthcare forecastinganalytics

and the specific earning potential of actuaries who fill these positions

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7

GfK Healthcare Marketing research built for youSM February 2010

Study Design

GfK Healthcare conducted multiple phases of research utilizing bothqualitative and quantitative methodologies

983085 Each phase allowed us to explore the untapped opportunities in the healthcare industry

983085 Initial phases of research assisted in the study design for subsequent phases

Phase Type ofResearch

RespondentTypes

Sample Size

Phase 1 Qualitative Actuarial Thought Leaders n= 14

Phase 1b Qualitative Healthcare Recruiters n=3

Phase 2 Qualitative Hiring Managers n=30

Phase 3 Quantitative Practicing Actuaries

Healthcare Recruiters

Hiring Managers

n=224

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8

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 4: Untapped Opportunities Health

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

n Many health care executives are looking for analytical professionals with extensive experience in the

health care industry Actuaries with such a background would be welcomed into such organizations as

health care management consulting disease management and wellness companies hospital systems

or pharmacy benefits managers (PBMs) This is especially true if they can also bring a broad base of

business skills such as big picture thinking flexibility adaptability and strong communication skills

Barriers to new opportunities

n

Knowledge of health actuaries is generally limited except by those working for health plans Health careexecutives were very interested in a professional who has the analytical skills of an actuary combined

with experience in health care We are working to find ways to brand ldquoThe Health Actuaryrdquo to the

broader health industry

n The market research confirmed the perception that actuaries command higher salaries than other

similarly experienced professionals The study did not include a comprehensive analysis or survey of

compensation so although we cannot prove or disprove this perception we do need to be aware

that the perception exists Any major career change will come with risks and compensation levels (pres-ent and future) should be considered when evaluating all of the risks involved in change Just as our

organizations evaluate risks we professionals must continually perform our own personal enterprise

risk management assessment

n Actuaries must compete with other professionals for these nontraditional roles Some of these compet-

ing professionals are health economists statisticians (with PhDs) MBAs public health professionals and

public policy professionals

SKILLS NEEDED

Technical skills

The market research confirmed the need to develop or enhance several skill sets to compete in nontraditional

areas These skills include

n Clinical knowledgemdashunderstanding of diseases especially chronic diseases and especially related to

alternative treatments and drugs

n Study and clinical trial designmdashdeveloping the statistical rigor and understanding of studies that can

affect treatment of conditions and outcomes and comparative effectiveness research study design

n Accountability for resultsmdashensuring a thorough understanding of how our results will be relied upon

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Business skills

Executives interviewed and surveyed in the market research study pointed to several key business skills that they seek

in any professional working on forecasting and analytics in their organizations These skills align with other studies

that the SOA has conducted proving that the health care marketplace is seeking the same skills as other markets

where actuaries work Health care executives want analytical professionals with the following skills

n Strategic thinkingmdashthe ability to think about the bigger picture of an organization is a skill that health care

executives say is critically important and is also currently lacking in their existing staffs Actuaries who can

demonstrate abilities as both detailed analysts and strategic thinkers will have the greatest potential to

develop in a nontraditional role

n Problem-solving abilitymdashactuaries are typically excellent problem solvers and while health care execu-

tives find this to be among the most important skills it is also found among existing professionals in

nontraditional health areas Actuaries will need to demonstrate the value of our unique training and

perspective

n Communication skillsmdashoral and especially written communication

n

Decision-making skillsmdashthe need to be flexible and adaptive and not necessarily always have theldquorightrdquoanswer

SOA RESEARCH

SOA health research has historically been executed with an

actuarial audience in mind consideration of the downstream

value of our work to the broader health care industry has been

secondary Yet our research has considerable value to a wider

audiencemdashfor example our 2007 report on health risk assess-

ment tools and our 2009 Quality amp Efficiency tool inventory

The Untapped Opportunities Work Group has allocated a signif-

icant portion of its budget to promoting actuarial research and

funding researchers to attend and present their results at new

forums In addition to sponsoring research on traditional actuarial

topics we are targeting new areas that will appeal to academics

and health professionals with the ultimate goal of submitting our

work to broad-reaching peer-reviewed health care journals

The SOA is committed to helping get the word out about our

UNTAPPED OPPORTUNITIES

WORK GROUP

Jim Toole FSA CERA MAAA Chair

Alice Rosenblatt FSA CERA MAAA

SOA Board and Strategic Team Ac-

countability

Bob Cosway FSA MAAA

Kate Fitch RN MEd

Jennifer Gillespie FSA MAAA

Francois-Joseph Poirier FSA FCIA

Mayur Shah MA

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

BASIC EDUCATION

The health-track exam committees are constantly working to revise the format and content of the Modules and

Fellowship exams to reflect current topics The FSA Modules especially allow for considerable flexibility to introduce

cutting edge material As an example the Module committees are planning to add more material on the clinical

aspects of common chronic diseases More clinical education will be added to the modules and syllabi over time

CONTINUING PROFESSIONAL DEVELOPMENT

One of the most logical outcomes of the Untapped Opportunities initiative will be educational opportunities that

provide actuaries with the cutting edge knowledgemdashboth technical and soft-skills-focusedmdashto enable them to

succeed in nontraditional areas in the health care industry An outcome immediately available for implementation

will be to offer sessions at meetings and webcasts to educate actuaries on topics that the market research has

uncovered such as clinical topics and study design In fact the upcoming SOA lsquo10 Health Meeting (June 28ndash30

in Orlando) has a planned session on study design

We are also exploring more comprehensive outlets for health care education At this yearrsquos Health Pricing and

Valuation Boot Camps we will offer a half-day session called ldquoMedical School for Actuariesrdquo in which a physician

will provide an in-depth education on several key chronic conditions that actuaries may encounter This sort of

clinical training will hopefully be continued in future meetings and webcasts since there is considerable interest

in this particular topic The work group has discussed other possible CPD ideas including more collaborations

with other organizations for symposia and seminars

BRANDING OF THE HEALTH ACTUARY

As we develop new research and education opportunities we will be looking for ways to expand the reach ofthese activities to include professionals outside the traditional actuarial profession This expansion will enable

ldquoThe Health Actuaryrdquo to become known to professionals all over the broader health care industry

This brand expansion might come from partnerships with other organizations to deliver robust educational

content For example in the past we have joined with the DMAA The Care Continuum Alliance to co-sponsor

the Predictive Modeling Symposium bringing disease maagement professionals together with actuaries for a

common networking and educational event

Brand expansion might also come from presenting our thought leadership at conferences or in publications of

other organizations and from continuing to bring non-actuarial thought leaders to our conferences and publi-

cations The SOArsquos health meeting each year brings many professionals to speak and these sessions are highly

rated proving that there is great value in enabling actuaries to hear from the broader industry

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Phase 2mdashQualitative research

During Phase 2 GfK interviewed non-actuarial executives in various health care sectors These interviews identified

future needs roles and employers for forecasting and analytic professions These interviews helped set the frame-

work for the Phase 3 Quantitative study design

Phase 3mdashQuantitative research

Phase 3 consisted of a detailed survey completed by 224 executives recruiters and hiring managers in various traditional

and nontraditional health care companies The respondents were asked questions about

n Current roles in their health care analytics and forecasting environment

n The importance and performance of current and desired staff on key attributes

n Other questions related to roles in their organizations regarding experience education compensation and

anticipated shortages

n Perceptions of actuaries

Final report

GfK issued reports on all the phases of the projects with a final report summarizing all findings The final report is

included as the appendix to this document The interim reports are available upon request to SOA staff (please contact

Jill Leprich jleprichsoaorg)

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Appendix Market Research Results Report from GfK Healthcare

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GfK Healthcare Marketing research built for youSM February 2010

Exploring OpportunitiesFor ActuariesPrepared for Society Of ActuariesFebruary 18 2010

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2

GfK Healthcare Marketing research built for youSM February 2010

AGENDA

1 Introductions

2

5 Q amp A

Research Objectives

Study Design

Key Findings

Conclusions and Recommendations

3

4

6 Appendix ndash Detailed Phase 3 Study Findings (Quantitative)

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3

GfK Healthcare Marketing research built for youSM February 2010

Introductions1

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4

GfK Healthcare Marketing research built for youSM February 2010

Introductions

Susan R Wild Senior Vice President

983085 Sue assisted in the research design supported the research team coordinatedteleconferences debriefs etc to ensure all research objectives were met

Linda Krank Vice President Custom Research

983085 Linda was responsible for the quantitative portion of the research study She designedthe quantitative questionnaire provided oversight for the fielding and analyzed the

quantitative findings To ensure seamless execution from the qualitative to thequantitative research Linda provided input into the qualitative discussion flow andobserved a portion of qualitative interviews

Katie Fordyce Associate Vice President Research and Consulting

983085 Katie provided complete oversight and execution of the qualitative interviews She wrotethe screeners and discussion guides managed the recruitment of respondentsconducted the interviews and analyzed the qualitative findings In addition Katieprovided insight into the quantitative questionnaire

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5

GfK Healthcare Marketing research built for youSM February 2010

Research ObjectivesStudy Design

2

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6

GfK Healthcare Marketing research built for youSM February 2010

Research Objectives

The Society of Actuaries is looking to expand opportunities for actuariesoutside traditional roles

983085 Focus was on the US healthcare industry which is one of the fastest growing

segments of the economy

The SOA has commissioned marketing research to examine theuntapped opportunities for actuaries in healthcare

The overarching strategic objective of this research program is to

expand job opportunities for members of the SOA within the healthcareindustry

983085 Additional objectives include Define the skills and education required to manage healthcare forecastinganalytics and

identify gaps or perceived gaps in these skills and educational requirements

Determine if perceptions differ across disciplines and industry groups

Uncover potential future hiring needs and the skills needed to fill them Identify perceptions of credentialed actuaries and how these perceptions may impact their

perceived value for key healthcare positions

Explore specific reasons for perceptions of actuaries across industry groups

Determine the degree to which healthcare experience changes the perceived value of actuaries Assess the salary potential for individuals hired to undertake healthcare forecastinganalytics

and the specific earning potential of actuaries who fill these positions

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7

GfK Healthcare Marketing research built for youSM February 2010

Study Design

GfK Healthcare conducted multiple phases of research utilizing bothqualitative and quantitative methodologies

983085 Each phase allowed us to explore the untapped opportunities in the healthcare industry

983085 Initial phases of research assisted in the study design for subsequent phases

Phase Type ofResearch

RespondentTypes

Sample Size

Phase 1 Qualitative Actuarial Thought Leaders n= 14

Phase 1b Qualitative Healthcare Recruiters n=3

Phase 2 Qualitative Hiring Managers n=30

Phase 3 Quantitative Practicing Actuaries

Healthcare Recruiters

Hiring Managers

n=224

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8

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 5: Untapped Opportunities Health

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Business skills

Executives interviewed and surveyed in the market research study pointed to several key business skills that they seek

in any professional working on forecasting and analytics in their organizations These skills align with other studies

that the SOA has conducted proving that the health care marketplace is seeking the same skills as other markets

where actuaries work Health care executives want analytical professionals with the following skills

n Strategic thinkingmdashthe ability to think about the bigger picture of an organization is a skill that health care

executives say is critically important and is also currently lacking in their existing staffs Actuaries who can

demonstrate abilities as both detailed analysts and strategic thinkers will have the greatest potential to

develop in a nontraditional role

n Problem-solving abilitymdashactuaries are typically excellent problem solvers and while health care execu-

tives find this to be among the most important skills it is also found among existing professionals in

nontraditional health areas Actuaries will need to demonstrate the value of our unique training and

perspective

n Communication skillsmdashoral and especially written communication

n

Decision-making skillsmdashthe need to be flexible and adaptive and not necessarily always have theldquorightrdquoanswer

SOA RESEARCH

SOA health research has historically been executed with an

actuarial audience in mind consideration of the downstream

value of our work to the broader health care industry has been

secondary Yet our research has considerable value to a wider

audiencemdashfor example our 2007 report on health risk assess-

ment tools and our 2009 Quality amp Efficiency tool inventory

The Untapped Opportunities Work Group has allocated a signif-

icant portion of its budget to promoting actuarial research and

funding researchers to attend and present their results at new

forums In addition to sponsoring research on traditional actuarial

topics we are targeting new areas that will appeal to academics

and health professionals with the ultimate goal of submitting our

work to broad-reaching peer-reviewed health care journals

The SOA is committed to helping get the word out about our

UNTAPPED OPPORTUNITIES

WORK GROUP

Jim Toole FSA CERA MAAA Chair

Alice Rosenblatt FSA CERA MAAA

SOA Board and Strategic Team Ac-

countability

Bob Cosway FSA MAAA

Kate Fitch RN MEd

Jennifer Gillespie FSA MAAA

Francois-Joseph Poirier FSA FCIA

Mayur Shah MA

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

BASIC EDUCATION

The health-track exam committees are constantly working to revise the format and content of the Modules and

Fellowship exams to reflect current topics The FSA Modules especially allow for considerable flexibility to introduce

cutting edge material As an example the Module committees are planning to add more material on the clinical

aspects of common chronic diseases More clinical education will be added to the modules and syllabi over time

CONTINUING PROFESSIONAL DEVELOPMENT

One of the most logical outcomes of the Untapped Opportunities initiative will be educational opportunities that

provide actuaries with the cutting edge knowledgemdashboth technical and soft-skills-focusedmdashto enable them to

succeed in nontraditional areas in the health care industry An outcome immediately available for implementation

will be to offer sessions at meetings and webcasts to educate actuaries on topics that the market research has

uncovered such as clinical topics and study design In fact the upcoming SOA lsquo10 Health Meeting (June 28ndash30

in Orlando) has a planned session on study design

We are also exploring more comprehensive outlets for health care education At this yearrsquos Health Pricing and

Valuation Boot Camps we will offer a half-day session called ldquoMedical School for Actuariesrdquo in which a physician

will provide an in-depth education on several key chronic conditions that actuaries may encounter This sort of

clinical training will hopefully be continued in future meetings and webcasts since there is considerable interest

in this particular topic The work group has discussed other possible CPD ideas including more collaborations

with other organizations for symposia and seminars

BRANDING OF THE HEALTH ACTUARY

As we develop new research and education opportunities we will be looking for ways to expand the reach ofthese activities to include professionals outside the traditional actuarial profession This expansion will enable

ldquoThe Health Actuaryrdquo to become known to professionals all over the broader health care industry

This brand expansion might come from partnerships with other organizations to deliver robust educational

content For example in the past we have joined with the DMAA The Care Continuum Alliance to co-sponsor

the Predictive Modeling Symposium bringing disease maagement professionals together with actuaries for a

common networking and educational event

Brand expansion might also come from presenting our thought leadership at conferences or in publications of

other organizations and from continuing to bring non-actuarial thought leaders to our conferences and publi-

cations The SOArsquos health meeting each year brings many professionals to speak and these sessions are highly

rated proving that there is great value in enabling actuaries to hear from the broader industry

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Phase 2mdashQualitative research

During Phase 2 GfK interviewed non-actuarial executives in various health care sectors These interviews identified

future needs roles and employers for forecasting and analytic professions These interviews helped set the frame-

work for the Phase 3 Quantitative study design

Phase 3mdashQuantitative research

Phase 3 consisted of a detailed survey completed by 224 executives recruiters and hiring managers in various traditional

and nontraditional health care companies The respondents were asked questions about

n Current roles in their health care analytics and forecasting environment

n The importance and performance of current and desired staff on key attributes

n Other questions related to roles in their organizations regarding experience education compensation and

anticipated shortages

n Perceptions of actuaries

Final report

GfK issued reports on all the phases of the projects with a final report summarizing all findings The final report is

included as the appendix to this document The interim reports are available upon request to SOA staff (please contact

Jill Leprich jleprichsoaorg)

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Appendix Market Research Results Report from GfK Healthcare

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GfK Healthcare Marketing research built for youSM February 2010

Exploring OpportunitiesFor ActuariesPrepared for Society Of ActuariesFebruary 18 2010

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2

GfK Healthcare Marketing research built for youSM February 2010

AGENDA

1 Introductions

2

5 Q amp A

Research Objectives

Study Design

Key Findings

Conclusions and Recommendations

3

4

6 Appendix ndash Detailed Phase 3 Study Findings (Quantitative)

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3

GfK Healthcare Marketing research built for youSM February 2010

Introductions1

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4

GfK Healthcare Marketing research built for youSM February 2010

Introductions

Susan R Wild Senior Vice President

983085 Sue assisted in the research design supported the research team coordinatedteleconferences debriefs etc to ensure all research objectives were met

Linda Krank Vice President Custom Research

983085 Linda was responsible for the quantitative portion of the research study She designedthe quantitative questionnaire provided oversight for the fielding and analyzed the

quantitative findings To ensure seamless execution from the qualitative to thequantitative research Linda provided input into the qualitative discussion flow andobserved a portion of qualitative interviews

Katie Fordyce Associate Vice President Research and Consulting

983085 Katie provided complete oversight and execution of the qualitative interviews She wrotethe screeners and discussion guides managed the recruitment of respondentsconducted the interviews and analyzed the qualitative findings In addition Katieprovided insight into the quantitative questionnaire

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5

GfK Healthcare Marketing research built for youSM February 2010

Research ObjectivesStudy Design

2

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6

GfK Healthcare Marketing research built for youSM February 2010

Research Objectives

The Society of Actuaries is looking to expand opportunities for actuariesoutside traditional roles

983085 Focus was on the US healthcare industry which is one of the fastest growing

segments of the economy

The SOA has commissioned marketing research to examine theuntapped opportunities for actuaries in healthcare

The overarching strategic objective of this research program is to

expand job opportunities for members of the SOA within the healthcareindustry

983085 Additional objectives include Define the skills and education required to manage healthcare forecastinganalytics and

identify gaps or perceived gaps in these skills and educational requirements

Determine if perceptions differ across disciplines and industry groups

Uncover potential future hiring needs and the skills needed to fill them Identify perceptions of credentialed actuaries and how these perceptions may impact their

perceived value for key healthcare positions

Explore specific reasons for perceptions of actuaries across industry groups

Determine the degree to which healthcare experience changes the perceived value of actuaries Assess the salary potential for individuals hired to undertake healthcare forecastinganalytics

and the specific earning potential of actuaries who fill these positions

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7

GfK Healthcare Marketing research built for youSM February 2010

Study Design

GfK Healthcare conducted multiple phases of research utilizing bothqualitative and quantitative methodologies

983085 Each phase allowed us to explore the untapped opportunities in the healthcare industry

983085 Initial phases of research assisted in the study design for subsequent phases

Phase Type ofResearch

RespondentTypes

Sample Size

Phase 1 Qualitative Actuarial Thought Leaders n= 14

Phase 1b Qualitative Healthcare Recruiters n=3

Phase 2 Qualitative Hiring Managers n=30

Phase 3 Quantitative Practicing Actuaries

Healthcare Recruiters

Hiring Managers

n=224

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8

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 6: Untapped Opportunities Health

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

BASIC EDUCATION

The health-track exam committees are constantly working to revise the format and content of the Modules and

Fellowship exams to reflect current topics The FSA Modules especially allow for considerable flexibility to introduce

cutting edge material As an example the Module committees are planning to add more material on the clinical

aspects of common chronic diseases More clinical education will be added to the modules and syllabi over time

CONTINUING PROFESSIONAL DEVELOPMENT

One of the most logical outcomes of the Untapped Opportunities initiative will be educational opportunities that

provide actuaries with the cutting edge knowledgemdashboth technical and soft-skills-focusedmdashto enable them to

succeed in nontraditional areas in the health care industry An outcome immediately available for implementation

will be to offer sessions at meetings and webcasts to educate actuaries on topics that the market research has

uncovered such as clinical topics and study design In fact the upcoming SOA lsquo10 Health Meeting (June 28ndash30

in Orlando) has a planned session on study design

We are also exploring more comprehensive outlets for health care education At this yearrsquos Health Pricing and

Valuation Boot Camps we will offer a half-day session called ldquoMedical School for Actuariesrdquo in which a physician

will provide an in-depth education on several key chronic conditions that actuaries may encounter This sort of

clinical training will hopefully be continued in future meetings and webcasts since there is considerable interest

in this particular topic The work group has discussed other possible CPD ideas including more collaborations

with other organizations for symposia and seminars

BRANDING OF THE HEALTH ACTUARY

As we develop new research and education opportunities we will be looking for ways to expand the reach ofthese activities to include professionals outside the traditional actuarial profession This expansion will enable

ldquoThe Health Actuaryrdquo to become known to professionals all over the broader health care industry

This brand expansion might come from partnerships with other organizations to deliver robust educational

content For example in the past we have joined with the DMAA The Care Continuum Alliance to co-sponsor

the Predictive Modeling Symposium bringing disease maagement professionals together with actuaries for a

common networking and educational event

Brand expansion might also come from presenting our thought leadership at conferences or in publications of

other organizations and from continuing to bring non-actuarial thought leaders to our conferences and publi-

cations The SOArsquos health meeting each year brings many professionals to speak and these sessions are highly

rated proving that there is great value in enabling actuaries to hear from the broader industry

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Phase 2mdashQualitative research

During Phase 2 GfK interviewed non-actuarial executives in various health care sectors These interviews identified

future needs roles and employers for forecasting and analytic professions These interviews helped set the frame-

work for the Phase 3 Quantitative study design

Phase 3mdashQuantitative research

Phase 3 consisted of a detailed survey completed by 224 executives recruiters and hiring managers in various traditional

and nontraditional health care companies The respondents were asked questions about

n Current roles in their health care analytics and forecasting environment

n The importance and performance of current and desired staff on key attributes

n Other questions related to roles in their organizations regarding experience education compensation and

anticipated shortages

n Perceptions of actuaries

Final report

GfK issued reports on all the phases of the projects with a final report summarizing all findings The final report is

included as the appendix to this document The interim reports are available upon request to SOA staff (please contact

Jill Leprich jleprichsoaorg)

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Appendix Market Research Results Report from GfK Healthcare

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GfK Healthcare Marketing research built for youSM February 2010

Exploring OpportunitiesFor ActuariesPrepared for Society Of ActuariesFebruary 18 2010

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2

GfK Healthcare Marketing research built for youSM February 2010

AGENDA

1 Introductions

2

5 Q amp A

Research Objectives

Study Design

Key Findings

Conclusions and Recommendations

3

4

6 Appendix ndash Detailed Phase 3 Study Findings (Quantitative)

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3

GfK Healthcare Marketing research built for youSM February 2010

Introductions1

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4

GfK Healthcare Marketing research built for youSM February 2010

Introductions

Susan R Wild Senior Vice President

983085 Sue assisted in the research design supported the research team coordinatedteleconferences debriefs etc to ensure all research objectives were met

Linda Krank Vice President Custom Research

983085 Linda was responsible for the quantitative portion of the research study She designedthe quantitative questionnaire provided oversight for the fielding and analyzed the

quantitative findings To ensure seamless execution from the qualitative to thequantitative research Linda provided input into the qualitative discussion flow andobserved a portion of qualitative interviews

Katie Fordyce Associate Vice President Research and Consulting

983085 Katie provided complete oversight and execution of the qualitative interviews She wrotethe screeners and discussion guides managed the recruitment of respondentsconducted the interviews and analyzed the qualitative findings In addition Katieprovided insight into the quantitative questionnaire

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5

GfK Healthcare Marketing research built for youSM February 2010

Research ObjectivesStudy Design

2

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6

GfK Healthcare Marketing research built for youSM February 2010

Research Objectives

The Society of Actuaries is looking to expand opportunities for actuariesoutside traditional roles

983085 Focus was on the US healthcare industry which is one of the fastest growing

segments of the economy

The SOA has commissioned marketing research to examine theuntapped opportunities for actuaries in healthcare

The overarching strategic objective of this research program is to

expand job opportunities for members of the SOA within the healthcareindustry

983085 Additional objectives include Define the skills and education required to manage healthcare forecastinganalytics and

identify gaps or perceived gaps in these skills and educational requirements

Determine if perceptions differ across disciplines and industry groups

Uncover potential future hiring needs and the skills needed to fill them Identify perceptions of credentialed actuaries and how these perceptions may impact their

perceived value for key healthcare positions

Explore specific reasons for perceptions of actuaries across industry groups

Determine the degree to which healthcare experience changes the perceived value of actuaries Assess the salary potential for individuals hired to undertake healthcare forecastinganalytics

and the specific earning potential of actuaries who fill these positions

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7

GfK Healthcare Marketing research built for youSM February 2010

Study Design

GfK Healthcare conducted multiple phases of research utilizing bothqualitative and quantitative methodologies

983085 Each phase allowed us to explore the untapped opportunities in the healthcare industry

983085 Initial phases of research assisted in the study design for subsequent phases

Phase Type ofResearch

RespondentTypes

Sample Size

Phase 1 Qualitative Actuarial Thought Leaders n= 14

Phase 1b Qualitative Healthcare Recruiters n=3

Phase 2 Qualitative Hiring Managers n=30

Phase 3 Quantitative Practicing Actuaries

Healthcare Recruiters

Hiring Managers

n=224

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8

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

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Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

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Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

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Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 7: Untapped Opportunities Health

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Phase 2mdashQualitative research

During Phase 2 GfK interviewed non-actuarial executives in various health care sectors These interviews identified

future needs roles and employers for forecasting and analytic professions These interviews helped set the frame-

work for the Phase 3 Quantitative study design

Phase 3mdashQuantitative research

Phase 3 consisted of a detailed survey completed by 224 executives recruiters and hiring managers in various traditional

and nontraditional health care companies The respondents were asked questions about

n Current roles in their health care analytics and forecasting environment

n The importance and performance of current and desired staff on key attributes

n Other questions related to roles in their organizations regarding experience education compensation and

anticipated shortages

n Perceptions of actuaries

Final report

GfK issued reports on all the phases of the projects with a final report summarizing all findings The final report is

included as the appendix to this document The interim reports are available upon request to SOA staff (please contact

Jill Leprich jleprichsoaorg)

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Appendix Market Research Results Report from GfK Healthcare

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GfK Healthcare Marketing research built for youSM February 2010

Exploring OpportunitiesFor ActuariesPrepared for Society Of ActuariesFebruary 18 2010

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2

GfK Healthcare Marketing research built for youSM February 2010

AGENDA

1 Introductions

2

5 Q amp A

Research Objectives

Study Design

Key Findings

Conclusions and Recommendations

3

4

6 Appendix ndash Detailed Phase 3 Study Findings (Quantitative)

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3

GfK Healthcare Marketing research built for youSM February 2010

Introductions1

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4

GfK Healthcare Marketing research built for youSM February 2010

Introductions

Susan R Wild Senior Vice President

983085 Sue assisted in the research design supported the research team coordinatedteleconferences debriefs etc to ensure all research objectives were met

Linda Krank Vice President Custom Research

983085 Linda was responsible for the quantitative portion of the research study She designedthe quantitative questionnaire provided oversight for the fielding and analyzed the

quantitative findings To ensure seamless execution from the qualitative to thequantitative research Linda provided input into the qualitative discussion flow andobserved a portion of qualitative interviews

Katie Fordyce Associate Vice President Research and Consulting

983085 Katie provided complete oversight and execution of the qualitative interviews She wrotethe screeners and discussion guides managed the recruitment of respondentsconducted the interviews and analyzed the qualitative findings In addition Katieprovided insight into the quantitative questionnaire

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5

GfK Healthcare Marketing research built for youSM February 2010

Research ObjectivesStudy Design

2

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6

GfK Healthcare Marketing research built for youSM February 2010

Research Objectives

The Society of Actuaries is looking to expand opportunities for actuariesoutside traditional roles

983085 Focus was on the US healthcare industry which is one of the fastest growing

segments of the economy

The SOA has commissioned marketing research to examine theuntapped opportunities for actuaries in healthcare

The overarching strategic objective of this research program is to

expand job opportunities for members of the SOA within the healthcareindustry

983085 Additional objectives include Define the skills and education required to manage healthcare forecastinganalytics and

identify gaps or perceived gaps in these skills and educational requirements

Determine if perceptions differ across disciplines and industry groups

Uncover potential future hiring needs and the skills needed to fill them Identify perceptions of credentialed actuaries and how these perceptions may impact their

perceived value for key healthcare positions

Explore specific reasons for perceptions of actuaries across industry groups

Determine the degree to which healthcare experience changes the perceived value of actuaries Assess the salary potential for individuals hired to undertake healthcare forecastinganalytics

and the specific earning potential of actuaries who fill these positions

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7

GfK Healthcare Marketing research built for youSM February 2010

Study Design

GfK Healthcare conducted multiple phases of research utilizing bothqualitative and quantitative methodologies

983085 Each phase allowed us to explore the untapped opportunities in the healthcare industry

983085 Initial phases of research assisted in the study design for subsequent phases

Phase Type ofResearch

RespondentTypes

Sample Size

Phase 1 Qualitative Actuarial Thought Leaders n= 14

Phase 1b Qualitative Healthcare Recruiters n=3

Phase 2 Qualitative Hiring Managers n=30

Phase 3 Quantitative Practicing Actuaries

Healthcare Recruiters

Hiring Managers

n=224

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8

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 8: Untapped Opportunities Health

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Phase 2mdashQualitative research

During Phase 2 GfK interviewed non-actuarial executives in various health care sectors These interviews identified

future needs roles and employers for forecasting and analytic professions These interviews helped set the frame-

work for the Phase 3 Quantitative study design

Phase 3mdashQuantitative research

Phase 3 consisted of a detailed survey completed by 224 executives recruiters and hiring managers in various traditional

and nontraditional health care companies The respondents were asked questions about

n Current roles in their health care analytics and forecasting environment

n The importance and performance of current and desired staff on key attributes

n Other questions related to roles in their organizations regarding experience education compensation and

anticipated shortages

n Perceptions of actuaries

Final report

GfK issued reports on all the phases of the projects with a final report summarizing all findings The final report is

included as the appendix to this document The interim reports are available upon request to SOA staff (please contact

Jill Leprich jleprichsoaorg)

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Appendix Market Research Results Report from GfK Healthcare

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GfK Healthcare Marketing research built for youSM February 2010

Exploring OpportunitiesFor ActuariesPrepared for Society Of ActuariesFebruary 18 2010

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2

GfK Healthcare Marketing research built for youSM February 2010

AGENDA

1 Introductions

2

5 Q amp A

Research Objectives

Study Design

Key Findings

Conclusions and Recommendations

3

4

6 Appendix ndash Detailed Phase 3 Study Findings (Quantitative)

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3

GfK Healthcare Marketing research built for youSM February 2010

Introductions1

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4

GfK Healthcare Marketing research built for youSM February 2010

Introductions

Susan R Wild Senior Vice President

983085 Sue assisted in the research design supported the research team coordinatedteleconferences debriefs etc to ensure all research objectives were met

Linda Krank Vice President Custom Research

983085 Linda was responsible for the quantitative portion of the research study She designedthe quantitative questionnaire provided oversight for the fielding and analyzed the

quantitative findings To ensure seamless execution from the qualitative to thequantitative research Linda provided input into the qualitative discussion flow andobserved a portion of qualitative interviews

Katie Fordyce Associate Vice President Research and Consulting

983085 Katie provided complete oversight and execution of the qualitative interviews She wrotethe screeners and discussion guides managed the recruitment of respondentsconducted the interviews and analyzed the qualitative findings In addition Katieprovided insight into the quantitative questionnaire

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5

GfK Healthcare Marketing research built for youSM February 2010

Research ObjectivesStudy Design

2

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6

GfK Healthcare Marketing research built for youSM February 2010

Research Objectives

The Society of Actuaries is looking to expand opportunities for actuariesoutside traditional roles

983085 Focus was on the US healthcare industry which is one of the fastest growing

segments of the economy

The SOA has commissioned marketing research to examine theuntapped opportunities for actuaries in healthcare

The overarching strategic objective of this research program is to

expand job opportunities for members of the SOA within the healthcareindustry

983085 Additional objectives include Define the skills and education required to manage healthcare forecastinganalytics and

identify gaps or perceived gaps in these skills and educational requirements

Determine if perceptions differ across disciplines and industry groups

Uncover potential future hiring needs and the skills needed to fill them Identify perceptions of credentialed actuaries and how these perceptions may impact their

perceived value for key healthcare positions

Explore specific reasons for perceptions of actuaries across industry groups

Determine the degree to which healthcare experience changes the perceived value of actuaries Assess the salary potential for individuals hired to undertake healthcare forecastinganalytics

and the specific earning potential of actuaries who fill these positions

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7

GfK Healthcare Marketing research built for youSM February 2010

Study Design

GfK Healthcare conducted multiple phases of research utilizing bothqualitative and quantitative methodologies

983085 Each phase allowed us to explore the untapped opportunities in the healthcare industry

983085 Initial phases of research assisted in the study design for subsequent phases

Phase Type ofResearch

RespondentTypes

Sample Size

Phase 1 Qualitative Actuarial Thought Leaders n= 14

Phase 1b Qualitative Healthcare Recruiters n=3

Phase 2 Qualitative Hiring Managers n=30

Phase 3 Quantitative Practicing Actuaries

Healthcare Recruiters

Hiring Managers

n=224

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8

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 9: Untapped Opportunities Health

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Untapped Opportunities For Actuaries in Health Care Market Research Summary Report to Membership

Appendix Market Research Results Report from GfK Healthcare

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GfK Healthcare Marketing research built for youSM February 2010

Exploring OpportunitiesFor ActuariesPrepared for Society Of ActuariesFebruary 18 2010

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2

GfK Healthcare Marketing research built for youSM February 2010

AGENDA

1 Introductions

2

5 Q amp A

Research Objectives

Study Design

Key Findings

Conclusions and Recommendations

3

4

6 Appendix ndash Detailed Phase 3 Study Findings (Quantitative)

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3

GfK Healthcare Marketing research built for youSM February 2010

Introductions1

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4

GfK Healthcare Marketing research built for youSM February 2010

Introductions

Susan R Wild Senior Vice President

983085 Sue assisted in the research design supported the research team coordinatedteleconferences debriefs etc to ensure all research objectives were met

Linda Krank Vice President Custom Research

983085 Linda was responsible for the quantitative portion of the research study She designedthe quantitative questionnaire provided oversight for the fielding and analyzed the

quantitative findings To ensure seamless execution from the qualitative to thequantitative research Linda provided input into the qualitative discussion flow andobserved a portion of qualitative interviews

Katie Fordyce Associate Vice President Research and Consulting

983085 Katie provided complete oversight and execution of the qualitative interviews She wrotethe screeners and discussion guides managed the recruitment of respondentsconducted the interviews and analyzed the qualitative findings In addition Katieprovided insight into the quantitative questionnaire

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5

GfK Healthcare Marketing research built for youSM February 2010

Research ObjectivesStudy Design

2

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6

GfK Healthcare Marketing research built for youSM February 2010

Research Objectives

The Society of Actuaries is looking to expand opportunities for actuariesoutside traditional roles

983085 Focus was on the US healthcare industry which is one of the fastest growing

segments of the economy

The SOA has commissioned marketing research to examine theuntapped opportunities for actuaries in healthcare

The overarching strategic objective of this research program is to

expand job opportunities for members of the SOA within the healthcareindustry

983085 Additional objectives include Define the skills and education required to manage healthcare forecastinganalytics and

identify gaps or perceived gaps in these skills and educational requirements

Determine if perceptions differ across disciplines and industry groups

Uncover potential future hiring needs and the skills needed to fill them Identify perceptions of credentialed actuaries and how these perceptions may impact their

perceived value for key healthcare positions

Explore specific reasons for perceptions of actuaries across industry groups

Determine the degree to which healthcare experience changes the perceived value of actuaries Assess the salary potential for individuals hired to undertake healthcare forecastinganalytics

and the specific earning potential of actuaries who fill these positions

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7

GfK Healthcare Marketing research built for youSM February 2010

Study Design

GfK Healthcare conducted multiple phases of research utilizing bothqualitative and quantitative methodologies

983085 Each phase allowed us to explore the untapped opportunities in the healthcare industry

983085 Initial phases of research assisted in the study design for subsequent phases

Phase Type ofResearch

RespondentTypes

Sample Size

Phase 1 Qualitative Actuarial Thought Leaders n= 14

Phase 1b Qualitative Healthcare Recruiters n=3

Phase 2 Qualitative Hiring Managers n=30

Phase 3 Quantitative Practicing Actuaries

Healthcare Recruiters

Hiring Managers

n=224

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8

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

8132019 Untapped Opportunities Health

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5087

41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 10: Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Exploring OpportunitiesFor ActuariesPrepared for Society Of ActuariesFebruary 18 2010

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2

GfK Healthcare Marketing research built for youSM February 2010

AGENDA

1 Introductions

2

5 Q amp A

Research Objectives

Study Design

Key Findings

Conclusions and Recommendations

3

4

6 Appendix ndash Detailed Phase 3 Study Findings (Quantitative)

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3

GfK Healthcare Marketing research built for youSM February 2010

Introductions1

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4

GfK Healthcare Marketing research built for youSM February 2010

Introductions

Susan R Wild Senior Vice President

983085 Sue assisted in the research design supported the research team coordinatedteleconferences debriefs etc to ensure all research objectives were met

Linda Krank Vice President Custom Research

983085 Linda was responsible for the quantitative portion of the research study She designedthe quantitative questionnaire provided oversight for the fielding and analyzed the

quantitative findings To ensure seamless execution from the qualitative to thequantitative research Linda provided input into the qualitative discussion flow andobserved a portion of qualitative interviews

Katie Fordyce Associate Vice President Research and Consulting

983085 Katie provided complete oversight and execution of the qualitative interviews She wrotethe screeners and discussion guides managed the recruitment of respondentsconducted the interviews and analyzed the qualitative findings In addition Katieprovided insight into the quantitative questionnaire

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5

GfK Healthcare Marketing research built for youSM February 2010

Research ObjectivesStudy Design

2

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6

GfK Healthcare Marketing research built for youSM February 2010

Research Objectives

The Society of Actuaries is looking to expand opportunities for actuariesoutside traditional roles

983085 Focus was on the US healthcare industry which is one of the fastest growing

segments of the economy

The SOA has commissioned marketing research to examine theuntapped opportunities for actuaries in healthcare

The overarching strategic objective of this research program is to

expand job opportunities for members of the SOA within the healthcareindustry

983085 Additional objectives include Define the skills and education required to manage healthcare forecastinganalytics and

identify gaps or perceived gaps in these skills and educational requirements

Determine if perceptions differ across disciplines and industry groups

Uncover potential future hiring needs and the skills needed to fill them Identify perceptions of credentialed actuaries and how these perceptions may impact their

perceived value for key healthcare positions

Explore specific reasons for perceptions of actuaries across industry groups

Determine the degree to which healthcare experience changes the perceived value of actuaries Assess the salary potential for individuals hired to undertake healthcare forecastinganalytics

and the specific earning potential of actuaries who fill these positions

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7

GfK Healthcare Marketing research built for youSM February 2010

Study Design

GfK Healthcare conducted multiple phases of research utilizing bothqualitative and quantitative methodologies

983085 Each phase allowed us to explore the untapped opportunities in the healthcare industry

983085 Initial phases of research assisted in the study design for subsequent phases

Phase Type ofResearch

RespondentTypes

Sample Size

Phase 1 Qualitative Actuarial Thought Leaders n= 14

Phase 1b Qualitative Healthcare Recruiters n=3

Phase 2 Qualitative Hiring Managers n=30

Phase 3 Quantitative Practicing Actuaries

Healthcare Recruiters

Hiring Managers

n=224

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8

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 11: Untapped Opportunities Health

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2

GfK Healthcare Marketing research built for youSM February 2010

AGENDA

1 Introductions

2

5 Q amp A

Research Objectives

Study Design

Key Findings

Conclusions and Recommendations

3

4

6 Appendix ndash Detailed Phase 3 Study Findings (Quantitative)

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3

GfK Healthcare Marketing research built for youSM February 2010

Introductions1

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4

GfK Healthcare Marketing research built for youSM February 2010

Introductions

Susan R Wild Senior Vice President

983085 Sue assisted in the research design supported the research team coordinatedteleconferences debriefs etc to ensure all research objectives were met

Linda Krank Vice President Custom Research

983085 Linda was responsible for the quantitative portion of the research study She designedthe quantitative questionnaire provided oversight for the fielding and analyzed the

quantitative findings To ensure seamless execution from the qualitative to thequantitative research Linda provided input into the qualitative discussion flow andobserved a portion of qualitative interviews

Katie Fordyce Associate Vice President Research and Consulting

983085 Katie provided complete oversight and execution of the qualitative interviews She wrotethe screeners and discussion guides managed the recruitment of respondentsconducted the interviews and analyzed the qualitative findings In addition Katieprovided insight into the quantitative questionnaire

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5

GfK Healthcare Marketing research built for youSM February 2010

Research ObjectivesStudy Design

2

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6

GfK Healthcare Marketing research built for youSM February 2010

Research Objectives

The Society of Actuaries is looking to expand opportunities for actuariesoutside traditional roles

983085 Focus was on the US healthcare industry which is one of the fastest growing

segments of the economy

The SOA has commissioned marketing research to examine theuntapped opportunities for actuaries in healthcare

The overarching strategic objective of this research program is to

expand job opportunities for members of the SOA within the healthcareindustry

983085 Additional objectives include Define the skills and education required to manage healthcare forecastinganalytics and

identify gaps or perceived gaps in these skills and educational requirements

Determine if perceptions differ across disciplines and industry groups

Uncover potential future hiring needs and the skills needed to fill them Identify perceptions of credentialed actuaries and how these perceptions may impact their

perceived value for key healthcare positions

Explore specific reasons for perceptions of actuaries across industry groups

Determine the degree to which healthcare experience changes the perceived value of actuaries Assess the salary potential for individuals hired to undertake healthcare forecastinganalytics

and the specific earning potential of actuaries who fill these positions

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7

GfK Healthcare Marketing research built for youSM February 2010

Study Design

GfK Healthcare conducted multiple phases of research utilizing bothqualitative and quantitative methodologies

983085 Each phase allowed us to explore the untapped opportunities in the healthcare industry

983085 Initial phases of research assisted in the study design for subsequent phases

Phase Type ofResearch

RespondentTypes

Sample Size

Phase 1 Qualitative Actuarial Thought Leaders n= 14

Phase 1b Qualitative Healthcare Recruiters n=3

Phase 2 Qualitative Hiring Managers n=30

Phase 3 Quantitative Practicing Actuaries

Healthcare Recruiters

Hiring Managers

n=224

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8

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 12: Untapped Opportunities Health

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3

GfK Healthcare Marketing research built for youSM February 2010

Introductions1

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4

GfK Healthcare Marketing research built for youSM February 2010

Introductions

Susan R Wild Senior Vice President

983085 Sue assisted in the research design supported the research team coordinatedteleconferences debriefs etc to ensure all research objectives were met

Linda Krank Vice President Custom Research

983085 Linda was responsible for the quantitative portion of the research study She designedthe quantitative questionnaire provided oversight for the fielding and analyzed the

quantitative findings To ensure seamless execution from the qualitative to thequantitative research Linda provided input into the qualitative discussion flow andobserved a portion of qualitative interviews

Katie Fordyce Associate Vice President Research and Consulting

983085 Katie provided complete oversight and execution of the qualitative interviews She wrotethe screeners and discussion guides managed the recruitment of respondentsconducted the interviews and analyzed the qualitative findings In addition Katieprovided insight into the quantitative questionnaire

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5

GfK Healthcare Marketing research built for youSM February 2010

Research ObjectivesStudy Design

2

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6

GfK Healthcare Marketing research built for youSM February 2010

Research Objectives

The Society of Actuaries is looking to expand opportunities for actuariesoutside traditional roles

983085 Focus was on the US healthcare industry which is one of the fastest growing

segments of the economy

The SOA has commissioned marketing research to examine theuntapped opportunities for actuaries in healthcare

The overarching strategic objective of this research program is to

expand job opportunities for members of the SOA within the healthcareindustry

983085 Additional objectives include Define the skills and education required to manage healthcare forecastinganalytics and

identify gaps or perceived gaps in these skills and educational requirements

Determine if perceptions differ across disciplines and industry groups

Uncover potential future hiring needs and the skills needed to fill them Identify perceptions of credentialed actuaries and how these perceptions may impact their

perceived value for key healthcare positions

Explore specific reasons for perceptions of actuaries across industry groups

Determine the degree to which healthcare experience changes the perceived value of actuaries Assess the salary potential for individuals hired to undertake healthcare forecastinganalytics

and the specific earning potential of actuaries who fill these positions

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7

GfK Healthcare Marketing research built for youSM February 2010

Study Design

GfK Healthcare conducted multiple phases of research utilizing bothqualitative and quantitative methodologies

983085 Each phase allowed us to explore the untapped opportunities in the healthcare industry

983085 Initial phases of research assisted in the study design for subsequent phases

Phase Type ofResearch

RespondentTypes

Sample Size

Phase 1 Qualitative Actuarial Thought Leaders n= 14

Phase 1b Qualitative Healthcare Recruiters n=3

Phase 2 Qualitative Hiring Managers n=30

Phase 3 Quantitative Practicing Actuaries

Healthcare Recruiters

Hiring Managers

n=224

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8

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 13: Untapped Opportunities Health

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4

GfK Healthcare Marketing research built for youSM February 2010

Introductions

Susan R Wild Senior Vice President

983085 Sue assisted in the research design supported the research team coordinatedteleconferences debriefs etc to ensure all research objectives were met

Linda Krank Vice President Custom Research

983085 Linda was responsible for the quantitative portion of the research study She designedthe quantitative questionnaire provided oversight for the fielding and analyzed the

quantitative findings To ensure seamless execution from the qualitative to thequantitative research Linda provided input into the qualitative discussion flow andobserved a portion of qualitative interviews

Katie Fordyce Associate Vice President Research and Consulting

983085 Katie provided complete oversight and execution of the qualitative interviews She wrotethe screeners and discussion guides managed the recruitment of respondentsconducted the interviews and analyzed the qualitative findings In addition Katieprovided insight into the quantitative questionnaire

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5

GfK Healthcare Marketing research built for youSM February 2010

Research ObjectivesStudy Design

2

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6

GfK Healthcare Marketing research built for youSM February 2010

Research Objectives

The Society of Actuaries is looking to expand opportunities for actuariesoutside traditional roles

983085 Focus was on the US healthcare industry which is one of the fastest growing

segments of the economy

The SOA has commissioned marketing research to examine theuntapped opportunities for actuaries in healthcare

The overarching strategic objective of this research program is to

expand job opportunities for members of the SOA within the healthcareindustry

983085 Additional objectives include Define the skills and education required to manage healthcare forecastinganalytics and

identify gaps or perceived gaps in these skills and educational requirements

Determine if perceptions differ across disciplines and industry groups

Uncover potential future hiring needs and the skills needed to fill them Identify perceptions of credentialed actuaries and how these perceptions may impact their

perceived value for key healthcare positions

Explore specific reasons for perceptions of actuaries across industry groups

Determine the degree to which healthcare experience changes the perceived value of actuaries Assess the salary potential for individuals hired to undertake healthcare forecastinganalytics

and the specific earning potential of actuaries who fill these positions

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7

GfK Healthcare Marketing research built for youSM February 2010

Study Design

GfK Healthcare conducted multiple phases of research utilizing bothqualitative and quantitative methodologies

983085 Each phase allowed us to explore the untapped opportunities in the healthcare industry

983085 Initial phases of research assisted in the study design for subsequent phases

Phase Type ofResearch

RespondentTypes

Sample Size

Phase 1 Qualitative Actuarial Thought Leaders n= 14

Phase 1b Qualitative Healthcare Recruiters n=3

Phase 2 Qualitative Hiring Managers n=30

Phase 3 Quantitative Practicing Actuaries

Healthcare Recruiters

Hiring Managers

n=224

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8

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 14: Untapped Opportunities Health

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5

GfK Healthcare Marketing research built for youSM February 2010

Research ObjectivesStudy Design

2

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6

GfK Healthcare Marketing research built for youSM February 2010

Research Objectives

The Society of Actuaries is looking to expand opportunities for actuariesoutside traditional roles

983085 Focus was on the US healthcare industry which is one of the fastest growing

segments of the economy

The SOA has commissioned marketing research to examine theuntapped opportunities for actuaries in healthcare

The overarching strategic objective of this research program is to

expand job opportunities for members of the SOA within the healthcareindustry

983085 Additional objectives include Define the skills and education required to manage healthcare forecastinganalytics and

identify gaps or perceived gaps in these skills and educational requirements

Determine if perceptions differ across disciplines and industry groups

Uncover potential future hiring needs and the skills needed to fill them Identify perceptions of credentialed actuaries and how these perceptions may impact their

perceived value for key healthcare positions

Explore specific reasons for perceptions of actuaries across industry groups

Determine the degree to which healthcare experience changes the perceived value of actuaries Assess the salary potential for individuals hired to undertake healthcare forecastinganalytics

and the specific earning potential of actuaries who fill these positions

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7

GfK Healthcare Marketing research built for youSM February 2010

Study Design

GfK Healthcare conducted multiple phases of research utilizing bothqualitative and quantitative methodologies

983085 Each phase allowed us to explore the untapped opportunities in the healthcare industry

983085 Initial phases of research assisted in the study design for subsequent phases

Phase Type ofResearch

RespondentTypes

Sample Size

Phase 1 Qualitative Actuarial Thought Leaders n= 14

Phase 1b Qualitative Healthcare Recruiters n=3

Phase 2 Qualitative Hiring Managers n=30

Phase 3 Quantitative Practicing Actuaries

Healthcare Recruiters

Hiring Managers

n=224

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8

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 15: Untapped Opportunities Health

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6

GfK Healthcare Marketing research built for youSM February 2010

Research Objectives

The Society of Actuaries is looking to expand opportunities for actuariesoutside traditional roles

983085 Focus was on the US healthcare industry which is one of the fastest growing

segments of the economy

The SOA has commissioned marketing research to examine theuntapped opportunities for actuaries in healthcare

The overarching strategic objective of this research program is to

expand job opportunities for members of the SOA within the healthcareindustry

983085 Additional objectives include Define the skills and education required to manage healthcare forecastinganalytics and

identify gaps or perceived gaps in these skills and educational requirements

Determine if perceptions differ across disciplines and industry groups

Uncover potential future hiring needs and the skills needed to fill them Identify perceptions of credentialed actuaries and how these perceptions may impact their

perceived value for key healthcare positions

Explore specific reasons for perceptions of actuaries across industry groups

Determine the degree to which healthcare experience changes the perceived value of actuaries Assess the salary potential for individuals hired to undertake healthcare forecastinganalytics

and the specific earning potential of actuaries who fill these positions

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7

GfK Healthcare Marketing research built for youSM February 2010

Study Design

GfK Healthcare conducted multiple phases of research utilizing bothqualitative and quantitative methodologies

983085 Each phase allowed us to explore the untapped opportunities in the healthcare industry

983085 Initial phases of research assisted in the study design for subsequent phases

Phase Type ofResearch

RespondentTypes

Sample Size

Phase 1 Qualitative Actuarial Thought Leaders n= 14

Phase 1b Qualitative Healthcare Recruiters n=3

Phase 2 Qualitative Hiring Managers n=30

Phase 3 Quantitative Practicing Actuaries

Healthcare Recruiters

Hiring Managers

n=224

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8

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 16: Untapped Opportunities Health

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7

GfK Healthcare Marketing research built for youSM February 2010

Study Design

GfK Healthcare conducted multiple phases of research utilizing bothqualitative and quantitative methodologies

983085 Each phase allowed us to explore the untapped opportunities in the healthcare industry

983085 Initial phases of research assisted in the study design for subsequent phases

Phase Type ofResearch

RespondentTypes

Sample Size

Phase 1 Qualitative Actuarial Thought Leaders n= 14

Phase 1b Qualitative Healthcare Recruiters n=3

Phase 2 Qualitative Hiring Managers n=30

Phase 3 Quantitative Practicing Actuaries

Healthcare Recruiters

Hiring Managers

n=224

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8

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 3587

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 17: Untapped Opportunities Health

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8

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

For Phase 1 the SOA provided GfK Healthcare with a list of Actuarial ThoughtLeaders

983085 This list included those individuals who had made in-roads into the healthcare industryoutside of traditional roles

The Healthcare Recruiters included in Phase 1b were recruited from lists withinGfK Healthcare

In Phase 2 GfK Healthcare recruited Hiring Managers employed in the followingindustry segments

983085 Biotech manufacturers

983085 Healthcare Consulting

983085 Wellness Companies

983085 Large Hospital Systems

983085 Health Plans

983085 Health Economics

983085 Pharmaceutical Manufacturers

983085 Health IT

983085 Disease Management

983085 PBMs

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 18: Untapped Opportunities Health

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9

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

For Phase 3 GfK Healthcare recruited professional HealthcareRecruiters and Hiring Managers employed in the following industrysegments

983085 Pharmaceutical and Biotech

983085 Healthcare Consulting

983085 Large Hospital Systems

983085 Health PlansHealth Policy

983085 Wellness Companies

983085 Health Economics

983085 Disease Management

983085 PBMs

983085 Clinical Research Organizations

Additionally the SOA requested the participation of key opinion leadersfrom within their membership in this phase of research

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 19: Untapped Opportunities Health

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10

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Quantitative

Recruitment of respondents for the quantitative portion of theresearch (Phase 3) was accomplished through a variety of methods

983085 Healthcare Recruiters and Hiring Managers were recruited throughpurchased industry lists

983085 GfK Healthcare provided the SOA with unique access codes to allow the Association to personally invite their membership

983085 To ensure the overall sample included representation from larger more

prestigious firms within the key industry groups telephone recruitmentwas used to augment the internet sample

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5687

47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 20: Untapped Opportunities Health

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11

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Screening

All respondents in Phases 1b 2 and 3 were screened for participationin the study based on criteria developed jointly by SOA and GfK

Years in current industry (Hiring Mgrs - min of 3 Recruiters ndash min of 5) Title level (emphasis on C-suite senior management director levels)

Work in one of four key analysis areas (strategicbusiness intelligencefinancerisk clinical outcomes health analytics)

Attitude toward importance of forecastinganalytics (very or extremelyimportant)

Be responsible for or involved in hiring process

Respondents in Phase 1 were not screened but came from a listprovided by the SOA

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 21: Untapped Opportunities Health

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 22: Untapped Opportunities Health

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13

GfK Healthcare Marketing research built for youSM February 2010

Study Design- Qualitative

In Phase 2 the interviews focused on the following

983085 Respondentrsquos background and primary responsibilities in their current

organization983085 Skill Set Information

Skills most important for analytical positions

Pertinent backgrounds

Educational requirements

Training provided

How candidates for open positions are found

983085 Future Needs

983085 Actuarial Assessment

Familiarity with actuaries Positivenegative perceptions

Use of actuaries in their department

Best fit within the organization

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 23: Untapped Opportunities Health

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14

GfK Healthcare Marketing research built for youSM February 2010

Study Design - Quantitative

The Phase 3 quantitative interviews lasted between 15 and 20minutes and focused on

Current healthcare forecastinganalytics environment

Importanceperformance of staff on key attributes Experience andor education required to fulfill job responsibilities

Reasonable salary expectations for forecastinganalytics positions

Anticipated industry shortages of qualified employees

Perceptions of actuaries and their ldquofitrdquo within the healthcare industry

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 24: Untapped Opportunities Health

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 25: Untapped Opportunities Health

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16

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Skill sets developed in the actuarial profession are seen (by thosewho know the profession) as pragmatic and applicable for fields asdiverse as advertising health policy and marketingmarket research

However actuaries are competing against other highly qualifiedcandidates for roles outside of their traditional responsibilities

983085 In the current marketplace (and presumably in the future) actuariescompete with the following candidates for nontraditional roles

Health economistsndash especially when it comes to government employment andhealth policy roles

PhDrsquos in statistics

MBAsndash especially for primarily strategic positions (it was explained that MBAsdo the strategic work and actuaries do the underlying data analysis)

Masters in Public HealthMasters in Public Policyndash for health policy positions

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 26: Untapped Opportunities Health

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17

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The positive attributesassociated with actuariesinclude

Strong technical skills

Trained in mathematics and riskanalysis

Very analytical

Focused on risk View world in black and white

Ability to convert ldquodatardquo into ldquoanalysisforecastrdquo

Understand the data and can predict

the financial risk

Could do modeling for large hospitalsystems if they understand thebusiness and understand health reform

The negative attributes associatedwith actuaries include

Viewed as number crunchers with no

personality

Lack good communication skills

The models they create may not reflectreal life as they are unable to take intoaccount all of the nuances within

healthcare

Viewed as not being able to ldquoplay in thegreyrdquo and interpret data as well aspeople with finance backgrounds

Potentially overqualified for analyst

positionsndash unlikely to take thesepositions for pay reasons

Have capability but not clinicalknowledge to understand outcomes

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 27: Untapped Opportunities Health

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18

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

There was limited familiarity among most respondents in Phase 1band Phase 2 about actuaries especially among those who do notcurrently work with actuaries

983085 They typically viewed actuaries as people who worked for insurancecompanies who calculated the odds of certain events happening

983085 Some described actuaries as those individuals who determine who getshealthcare and who lives and dies

According to several respondents actuaries make decisions based onpopulation trends

Hiring managers from health plans health IT and PBMs were themost familiar with actuaries and viewed them most favorably

983085 Among the few companies with actuaries already on staff the work ofactuaries is highly valued

983085 Some respondents who were familiar with actuarial work but had nopersonal experience believed actuaries commanded a very high salary

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 28: Untapped Opportunities Health

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19

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

Actuarial thought leaders described a need to broaden theirexperience in order to gain nontraditional roles

983085 Each of these respondents took the initiative to stretch their horizons They wereprovided opportunities and had the ability to learn quickly and adapt to these new

roles

Future analytical roles within the healthcare industry will likely focus more onclinical data with less emphasis on purely financial data

983085 Healthcare is becoming more data driven and actuaries are thought to be uniquelyqualified with the skills required to analyze these data and build models These data may not be purely financial data but also include health outcomes compliance

data and costeffectiveness of care983085 However this will put more pressure on those doing the analysis as important

decisions will be based on their work and analysts will be held accountable

983085 Additionally outcomes trials will be much larger with more risk and expenseassociated with them and more meta-analysis will need to be done to combineresults across trials Therefore knowledge of clinical study design will be critical

In order to meet these future opportunities current actuaries must stretchtheir horizons increase their visibility and become a stronger voice while stillremaining objective

983085 The future skills needed for actuaries to attain nontraditional roles involve becoming lessnarrowly focused and more flexible

SM

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

8132019 Untapped Opportunities Health

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 29: Untapped Opportunities Health

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20

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

The fundamental skills that will be useful for actuaries to have inorder to compete for nontraditional healthcare roles include

983085 A broader background which might include a more well-rounded college

program (so that the candidate is thought of as more than just a numbercruncher)

983085 A better understanding of the ldquobig picturerdquo For business-related opportunities this perspective can be attained through

several pertinent business classes (at a minimum) or an MBA degree

For health policy positions a Masters in Public Policy or Public Health would bean advantage

983085 Business ldquocuriosityrdquo which includes asking a lot of questions about what thedata is used for above and beyond what the actuary personally does withthe data

983085 Knowledge of what impact their work has on the organization

983085 The ability to employ nonlinear thinkingndash to be flexible and adaptive

983085 Improved communication skillsndash the ability to communicate effectivelyoutside of an actuarial audience (ie take a complex situation and explainit to most other people ldquoin plain Englishrdquo)

GfK H lth M k ti h b ilt f SM F b 2010

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 30: Untapped Opportunities Health

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21

GfK Healthcare Marketing research built for youSM February 2010

Key Findings

From the quantitative phase the two skills reported to be the mostimportant for individuals managing healthcare forecastinganalytics are problem-solving and strategic thinking

983085 Most of these respondents feel the current pool of professionalspossesses the problem-solving skills needed but there is a need-gap interms of strategic thinkers

The need for strategic thinkers (and not just number crunchers)came across clearly in the qualitative research as well

983085 ldquo Always have to have some ability to think strategicallymdashlooking at howwhat you are doing fits into the big picturerdquo ndash Pharma

983085 ldquoWe need strategic thinking to stay ahead of the pack and createdifferent ways of moving forwardrdquo ndash Health Economics

983085 ldquoThere is a need for strategic planning and the ability to pull a lot ofthings togetherrdquo ndash Large Hospital System

GfK Healthcare Marketing research built for youSM February 2010

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 4887

GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

8132019 Untapped Opportunities Health

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 31: Untapped Opportunities Health

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22

GfK Healthcare Marketing research built for youSM February 2010

Problem-solving is a much-desired characteristic and seems to be a readily

available skill while strategic thinking is important but not as well-fulfilled

Base Total respondents

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalyticsQ3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

542

524

Strategic

thinking

Supervisory

skills

Study design

Problem

solving

Programming languages

Verbal communication

Written

communication

Financial acumen

Cross-

functionalcoordination

Knowledge of

clinical issues

Knowledge

of regulatoryissues

Knowledge of

policy issues

Knowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Total Respondents

GfK Healthcare Marketing research built for youSM February 2010

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 32: Untapped Opportunities Health

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23

GfK Healthcare Marketing research built for you February 2010

Key Findings

In the qualitative phase most respondents believe that it is easiertoday than in the past to find qualified candidates for open positions

983085 This is due to a number of factors including

A smaller number of currently open positions Previous layoffs which have provided a large number of experienced candidates

looking for new opportunities

Outcomes research and health IT are industries that have been around a littlewhile now so there are more people with previous experience in these areas

Health IT positions that require frequent travel tend to be difficult tofill as turnover is high and employees burn out quickly

983085 Therefore it is difficult to find interested candidates with a lot of previousexperience

However when looking out five years about three in fiverespondents in the quantitative phase believe there will be ashortage of qualified candidates for healthcare forecastinganalyticspositions

983085 Healthcare reform and changes in technology are expected to expand themarket for qualified healthcare forecastinganalytics specialists

GfK Healthcare Marketing research built for youSM February 2010

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

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43

Conclusions and Recommendations4

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 33: Untapped Opportunities Health

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24

GfK Healthcare Marketing research built for you February 2010

Supporting the consensus that good candidates are hard to find a majorityof respondents in all groups believe there will be a shortage of qualified

candidates in the next few years

Base Total respondents

Q10 Do you anticipate a shortage of qualified candidates for positions in healthcare forecastinganalytics over the next 5 years

There are no significant differences across industry groups in this belief although directionally more respondentsfrom Health PlanPolicy organizations (65) anticipate a shortage (not charted)

(n=29) (n=38) (n=157)

GfK Healthcare Marketing research built for youSM February 2010

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

8132019 Untapped Opportunities Health

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 34: Untapped Opportunities Health

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25

GfK Healthcare Marketing research built for you February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcare

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41

61 A

70 A

70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 35: Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 36: Untapped Opportunities Health

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27

Key Findings

Segment Opportunities Barriers

Biotech Mfgr bull Financial risk analysis (ieprofitloss new product

development risk analysis etc)

bull Smaller companies with limitedbudgets

bull New employees will have to hitthe ground running little to notraining

HealthcareConsulting

bull More flexible projectsndash manyskills needed

bull Likes ldquological thinkersrdquo withstrong business skills

bull Analysis functions from othercompanies (especially pharmaand biotech) are beingoutsourced to consultingcompanies

bull Many require previousconsulting experience

bull Need to bring in a book ofbusiness in most cases

bull Prefer to hire HC professionals

Wellness Company bull Growth industry

bull Looking for individuals with

strong analytical skills

bull Requires clinical knowledge

bull Headed by medical

professionals

GfK Healthcare Marketing research built for youSM February 2010

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 37: Untapped Opportunities Health

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28

Key Findings

Segment Opportunities Barriers

Large HospitalSystem

bull Analysis and modeling of largehealthcare databases

bull Requires clinical knowledge

bull Staffed by MDs licensed inforeign countries

Health Plans bull Have knowledge of and highrespect for actuaries

bull Less healthcare experience

required

bull MBA+ desired

bull Use consultants to monitor

government policies

Health Economics bull Outcomes research bull Need more knowledge of clinicaltrial design

Disease Mgmt bull Modeling amp cost analysis

bull Clinical outcomes analysis

bull Background in health plans is

useful in understanding claims data

bull Requires strong communicationskills

bull Little training available

GfK Healthcare Marketing research built for youSM February 2010

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6387

54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 38: Untapped Opportunities Health

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29

Key Findings

Segment Opportunities Barriers

PharmaceuticalMfgr

bull Clinical studies

bull Financial risk analysis (ieprofitloss new productdevelopment risk analysis etc)

bull Clinical staff looking for PhD inStatistics

bull Knowledge of study designneeded

Health IT bull Less healthcare experiencerequired

bull Familiarity with actuaries

bull Growth industry

bull May not be willing to pay highsalary

bull SQL database language needed

PBMs bull Familiarity with actuaries

bull Growth industry

bull Training usually offered

bull Must be SQL trained

bull HC (ie nursing medicalpharmacy etc) backgroundpreferred

GfK Healthcare Marketing research built for youSM February 2010

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6287

53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 39: Untapped Opportunities Health

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30

Key Findings

There is consensus across respondent groups that analyticalexperience healthcare experience andor previous employment as ahealthcare analyst are desirable qualifications for a healthcare

forecastinganalytics candidate983085 No respondents from PharmaBiotech or Large Hospital Systems would

make actuaries their ldquofirst choicerdquo for this type of position

983085 Although nearly two in five respondents employed by Health PlanPolicyorganizations find actuaries to be a good fit for this type of positionthere is some concern about the lack of clinical knowledge ldquoActuaries have capability but not the clinical knowledge to understand

outcomesrdquo ndash Health Plan

GfK Healthcare Marketing research built for youSM February 2010

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6287

53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 40: Untapped Opportunities Health

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31

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ4 What type(s) of work experience is required for healthcare forecastinganalytics positions

Actuaries and Hiring Managers feel strongly that specific experience in healthcare forecasting is key

Significantly fewer respondents from PharmaBiotech agree that healthcare experience is necessary (not charted)

All groups agree that analytical experience is required prior experience in

the healthcare industry is also valuable

B

B

B

B

B

B

B

GfK Healthcare Marketing research built for youSM February 2010

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6387

54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 41: Untapped Opportunities Health

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32

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you bemost likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 42: Untapped Opportunities Health

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33

Key Findings

Healthcare Recruiters and Hiring Managers place a higher value onbusiness education than on professional accreditation

983085 Business degrees andor MBAs are also strongly desired by respondents

from PharmaBiotech and Large Hospital Systems ldquoI like to pull kids out of college or grad school and train themrdquo ndash Biotech

983085 Professional credentials are held in higher esteem by HealthcareConsultants and respondents from Health PlansPolicy organizationscompared to other industry groups

Whether or not an open position requires an advanced degree orprofessional credentials more than half of all respondents report ldquoexperience in a related fieldrdquo is what differentiates one candidatefrom another

ldquoIf we need a person to hit the ground running we will lean towardexperience over educationrdquo ndash Health Economics

ldquoIt doesnrsquot matter what their educational background is as long as they haveexperience in a similar industryrdquo ndash Pharma

GfK Healthcare Marketing research built for youSM February 2010

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6887

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 43: Untapped Opportunities Health

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34

Base Total respondentsRanked on total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

A

BC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 44: Untapped Opportunities Health

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35

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic orprofessional degreescredentials do you look for if any

Respondents from Large Hospitals and PharmaBiotech put stronger

emphasis on advanced business degrees than other respondents

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

A

CD

AB

A

ACD

D

C

Professional credentials are valued more by Healthcare Consultants and respondents from Health PlansPolicyorganizations

AB

GfK Healthcare Marketing research built for youSM February 2010

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 45: Untapped Opportunities Health

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36

Key Findings

Familiarity with actuaries is low with only 23 of Hiring Managersand Healthcare Recruiters saying they are ldquoveryrdquo or ldquoextremelyrdquofamiliar

983085 Not surprisingly familiarity is highest among respondents from HealthPlansPolicy organizations where actuaries have already made inroads

983085 Among those with familiarity however actuaries are viewed positively

About one-quarter of Hiring Managers and Healthcare Recruiters

would be highly likely to hirerecommend a credentialed actuary fora position in healthcare forecastinganalytics management

983085 Nine out of 10 respondents from Healthcare Consulting and Health Plansfeel actuaries would fit best in financerisk andor health analyticsdepartments

983085 More than half of PharmaBiotech respondents see strategybusinessintelligence financerisk andor health analytics as a good fit

GfK Healthcare Marketing research built for youSM February 2010

One in 10 Hiring Managers but no Recruiters say they are ldquoextremely familiarrdquo

8132019 Untapped Opportunities Health

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37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 4887

GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

8132019 Untapped Opportunities Health

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5087

41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5687

47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6287

53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6487

55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 46: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 4687

37

One in 10 Hiring Managers but no Recruiters say they are extremely familiar

with the trainingbackground of Credentialed Actuaries

Q12 How familiar are you with the trainingbackground of the following

Hiring Mgr = 10 Recruiter = 0

ldquoFamiliarrdquo RecHM(n=46)

RecHM (n=195)

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

Three out of five Recruiters and Hiring Managers with some familiarity have ahighly positive impression of Credentialed Actuaries

FAMILIARITY

POSITIVE IMPRESSION

GfK Healthcare Marketing research built for youSM February 2010

Ab t 9 t f 10 d t f H lth C lti d H lth

8132019 Untapped Opportunities Health

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38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 4887

GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 4987

40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5087

41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5187

42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5587

46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5687

47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5887

Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5987

50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6287

53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6387

54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6487

55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 47: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 4787

38

Base Total respondents who answered questionUppercase letters denote significant differences at the 90 confidence level

Q15 Whether or not you would personally consider this candidate in what department(s) do you feel a credentialed actuary would fitinto your organization based on skills and credentials

More than half of PharmaBiotech respondents think Actuaries would fit in strategybusiness intelligence financerisk andor health analytics departments

About 9 out of 10 respondents from Healthcare Consulting and HealthPlansPolicy feel Actuaries would fit in financerisk and health analytics

departments

AB A

AC

BC

A

A

C

A

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 4887

GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

8132019 Untapped Opportunities Health

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5087

41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5187

42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5287

43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5387

44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5487

45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5587

46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5687

47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5887

Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5987

50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6087

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 48: Untapped Opportunities Health

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Nearly one quarter of respondents from Large Hospitals and Healthcare

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6287

53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6387

54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6487

55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6587

GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6887

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 49: Untapped Opportunities Health

8132019 Untapped Opportunities Health

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40

Base Total respondents

Uppercase letters denote significant differences at the 90 confidence levelQ16 At what level do you feel such an individual would start

Nearly one-quarter of respondents from Large Hospitals and HealthcareConsulting organizations feel Actuaries could start in a senior management

role but most see Actuaries entering in mid-level positions

BC

DD

GfK Healthcare Marketing research built for youSM February 2010

f

8132019 Untapped Opportunities Health

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41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

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42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 50: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5087

41

Base Total respondents who believe salary range is appropriate for a manager of healthcare forecastinganalyticsCaution small base sizeUppercase letters denote significant differences at the 90 confidence level

Q16a Earlier you said [INSERT SELECTION FROM Q6B] would be a reasonable salary range for aan individual hired to manage your organizationrsquoshealthcare forecastinganalytics Do you think a credentialed actuary hired for a similar position would be entitled to a higher salary lower salary or the samesalary

86 of respondents believe a credentialed Actuary would be entitled to asalary equal to or greater than one paid to others in a similar role

(n=194) (n=2) (n=21) (n=78) (n=41) (n=28) (n=16) (n=5) (n=3)

GfK Healthcare Marketing research built for youSM February 2010

There is little question that an Actuary with training or experience in the

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5187

42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5287

43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5387

44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5487

45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5587

46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5687

47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5887

Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5987

50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6087

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6187

52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6287

53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6387

54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6487

55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6587

GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6687

57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6887

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 51: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5187

42

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q16b If a credentialed actuary presented to you with additional training or experience specifically aligned with the healthcare field (health actuary) would this increase your interest in this candidate

There is little question that an Actuary with training or experience in thehealthcare field will have a greatly increased chance of being hired for a

healthcare forecastinganalytics position

PharmaBiotech(n=39) (A)

Large Hospital(n=57) (B)

Healthcare Consulting(n=46) (C)

A

Health PlanPolicy(n=54) (D)

A

CD

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5287

43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5387

44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5487

45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5587

46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5687

47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5887

Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5987

50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6087

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6187

52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6287

53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6387

54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

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8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 52: Untapped Opportunities Health

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43

Conclusions and Recommendations4

GfK Healthcare Marketing research built for youSM February 2010

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44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6287

53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6387

54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6587

GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6887

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 53: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5387

44

Conclusions and Recommendations

Many of the actuaries who currently have nontraditional actuarial rolesobtained these positions by taking the initiative to step ldquoout of the boxrdquo

983085 In order to be more competitive for future employment opportunities

outside of health insurance firms there is a need for current and futureactuaries to broaden their horizons

983085 Improving communication skills as well as strategic thinking will greatlyenhance their competitiveness in the marketplace

There is little recognition of actuarial credentials outside of traditional roles983085 The actuarial brand needs to be strengthened in other areas of the

healthcare industry

983085 To be competitive in obtaining nontraditional roles the focus of actuariesshould be less on conveying pure credentials and instead showcasingtransferable skills

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5587

46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5687

47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5887

Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5987

50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6087

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6187

52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6287

53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6387

54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6487

55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6587

GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6887

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 54: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5487

45

Conclusions and Recommendations Strategic thinking is a very desirable trait but is in short supply

Include this element in all resumes presented for employment regardlessof industry

Graduate degrees are highly valued but experience trumps an MBA

Look for opportunities to place new graduates in entry-level healthcarepositions as part of ldquohealthcarerdquo credentialing

Changes in federal healthcare reform and technology will expand themarket for healthcare forecastinganalytics

Prepare current members to fill this impending void through targetedcontinuing education

Actuarial skills are a good fit for healthcare but awareness is low

Seek high visibility speaking engagements or articles in businesspublications tout ldquostrategic thinkingrdquo and introduce the idea ofcredentialed ldquohealthcare actuariesrdquo

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5587

46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5687

47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5887

Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5987

50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6087

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6187

52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6287

53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6387

54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6487

55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

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62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

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64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

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65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

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78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 55: Untapped Opportunities Health

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46

Questions and Answers5

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

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GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

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55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 56: Untapped Opportunities Health

8132019 Untapped Opportunities Health

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47Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115

katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157

susanwildgfkcom

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5787

48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5887

Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5987

50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6087

GfK Healthcare Marketing research built for youSM February 2010

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6287

53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6487

55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

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69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 57: Untapped Opportunities Health

8132019 Untapped Opportunities Health

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48

Appendix A ndash Detailed Study Findingsfor Phase 3 (Quantitative)6

GfK Healthcare Marketing research built for youSM January 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5887

Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 5987

50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6087

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6187

52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6287

53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6387

54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6487

55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6587

GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6687

57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6887

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 58: Untapped Opportunities Health

8132019 Untapped Opportunities Health

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Current Business Environment

GfK Healthcare Marketing research built for youSM February 2010

A majority of respondents working in strategybusiness intelligence come from

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

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54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6487

55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

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57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

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58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

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8132019 Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

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61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

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66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

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70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 59: Untapped Opportunities Health

8132019 Untapped Opportunities Health

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50

PharmaBiotech while health analytics departments are dominated by

respondents from Health PlansPolicy groups

Base Responding Actuaries and Hiring Managers (excludes consultants)Uppercase letters denote significant differences at the 90 confidence level

S4 Which of the following best describes the department in which you currently work

Two-thirds of responding Actuaries are employed in departments handling financerisk data (not charted)

C B

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6087

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

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53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6387

54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6487

55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6587

GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6687

57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6887

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

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68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 60: Untapped Opportunities Health

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GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6287

53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6387

54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6487

55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6587

GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6687

57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6887

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

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77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 61: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6187

52

Importance vs Performance =Needs Gap

GfK Healthcare Marketing research built for youSM February 2010

Gaps of 50 basis points or more exist for 5 of the 6 ldquomost importantrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6287

53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6387

54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6487

55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6587

GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6687

57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6887

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

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71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

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73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

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74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

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75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

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76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 62: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6287

53

Base Total Actuaries (n=29)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-05

-05

-03

-08

-06

-01

-10

-08-07

-05

-06

+10

-05

+03

-03

+04

Gaps of 50 basis points or more exist for 5 of the 6 most importantattributes according to Practicing Actuaries

The largest gap is reported for the attribute ldquostrategic thinkingrdquo which although not one of the most importantattributes among Actuaries is significantly more important to Recruiters and Hiring Managers

GfK Healthcare Marketing research built for youSM February 2010

Large gaps exist across the top three attributes rated highly important by

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6387

54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6487

55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6587

GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6687

57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6887

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 63: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6387

54

Base Total Recruiters (n=38)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-09

-10

-05

-04

-03

-04

-02

+01

-02

+03

-03

-02

-01

+01

+07

---

g g p p g y p y

Healthcare Recruiters

Once again the attribute ldquostrategic thinkingrdquo is seen to be relatively lacking among the available pool ofprofessionals

GfK Healthcare Marketing research built for youSM February 2010

There is more parity between importance and performance among Hiring

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6487

55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6587

GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6687

57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6887

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 64: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6487

55

Base Total Hiring Managers (n=157)

Q2 Please rate the following attributes in terms of importancehellipQ3 How well do your employees [available pool of professionals] fulfill these attributes

Need Gap

-04

-07

-03

-04

-01

-02

-02

-02

-03

---

-01

+01

-02

---

+03

+03

Managers compared to the other groups

Among Hiring Managers the largest gap is also reported for the attribute ldquostrategic thinkingrdquo

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6587

GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6687

57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6887

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

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72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 65: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6587

GfK Healthcare Marketing research built for youSM February 2010

The attribute ldquostrategic thinkingrdquo which is deemed extremely important

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6687

57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6887

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 66: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6687

57

Base Total respondents from Large Hospitals (n=57)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

520

555

Strategic thinking

Supervisory skills

Study design

Problem solving

Programming languages

Verbal

communication

Written communication

Financial acumen

Cross-functional coordinationKnowledge of

clinical issues Knowledge of

regulatory issues

Knowledge of

policy issues

Knowledge of health

systems financing

Leadership

Decision-making

Scientific

curiosity

Large Hospital

can be improved somewhat in terms of performance

GfK Healthcare Marketing research built for youSM February 2010

There is a need for more strategic thinkers and healthcare analyticsmanagers who have strong writing skills according to Healthcare

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6887

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 67: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6787

58

Base Total respondents from Healthcare Consulting (n=46)

Q2 Please rate the following attributes in terms of their importance for fulfillment of all aspects of healthcare forecastinganalytics

Q3 How well do your employees who currently manage healthcare forecastinganalytics (does the available pool of healthcare forecastinganalyticsprofessionals) fulfill these attributes

492

531

Strategic

thinking

Supervisory

skills

Study design

Problem solving

Programminglanguages

Verbal

communication

Written communication

Financial acumenCross-functional

coordinationKnowledge

of clinical

issues

Knowledge of regulatory issues

Knowledge of policy issuesKnowledge of health systemsfinancing

Leadership

Decision-making

Scientific

curiosity

Healthcare Consultants

managers who have strong writing skills according to Healthcare

Consultants

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6887

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 68: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6887

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 69: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 6987

GfK Healthcare Marketing research built for youSM February 2010

Whereas an MBA or other business degree is desirable for Recruiters andHiring Managers Actuaries strongly favor professional credentials or an

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 70: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7087

61

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q5 When you are looking to [hire place] individuals in analytical positions what specific academic or professional degreescredentials do you look for if any

g g g y p

advanced degree in statistics

Business degree

Professional certificationcredentials

Scientific healthcare degrees

MBA

Advanced degree in statistics

Advanced degree in economics

Other advanced degree

No specific degreecredentials required

BC

A

B

AB

B

A

ABC

B

BC

GfK Healthcare Marketing research built for youSM February 2010

Clinical supervisory IT and specific industry experience along with priorconsulting assignments are significantly more important to Recruiters and

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 71: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7187

62

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q4 What type(s) of work experience is required for healthcare forecastinganalytics positions

g g g y p

Hiring Managers than to Actuaries

A

A

A

A

A

A

B

A

A

A

A

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 72: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7287

63

Opportunities

GfK Healthcare Marketing research built for youSM February 2010

Nearly all Healthcare Consultants anticipate changes in federal healthcarereform and three-quarters foresee state healthcare reform as well

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 73: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7387

64

reform and three-quarters foresee state healthcare reform as well

Base Total respondentsRanked on total respondentsUppercase letters denote significant differences at the 90 confidence level

Q11 Which of these events do you believe will occur in the healthcare industry in the foreseeable future

More respondents from PharmaBiotech than others anticipate changes in FDA policy

PharmaBiotech

(n=39) (A)

LargeHospital

(n=57) (B)

HealthcareConsulting

(n=46) (C)

HealthPlanPolicy

(n=54) (D)

77 88 98 AB 94 A

49 81 A 76 A 82 A

62 68 76 72

44 67 A 76 A 69 A

41 61 A 70 A 70 A

54 53 74 ABD 56

74BCD 39 50 50

41 53 54 52

36 40 44 46

33 35 50 41

GfK Healthcare Marketing research built for youSM February 2010

While only two out of five total respondents anticipate changes in the use ofmeta-analysis most agree any change will result in increased employment

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 74: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7487

65opportunities

Base Total respondents who expect event to occurUppercase letters denote significant differences at the 90 confidence level

Q11a How do you anticipate these changes in the healthcare industry willincrease

ordecrease

the need forqualified healthcare forecastinganalytics professionals

It is interesting to note that net increases and not decreases in need are foreseen when any change isanticipated

TotalPharmaBiotech

LargeHospital

HealthcareConsulting

Health PlanPolicy

+85 +77 +80 +83 +91

+81 +88 +83 +78 +87

+73 +79 +67 +74 +73

+64 +63 +72 +60 +63

+62 +59 +58 +57 +70

+57 +38 +50 +62 +60

+48 +33 +28 +46 +69

+40 +35 +32 +44 +52

+40 +19 +47 +48 +29

+35 +36 +22 +45 +32

GfK Healthcare Marketing research built for youSM February 2010

Significantly more respondents from Health PlansPolicy organizations thanfrom other groups would be ldquomost likelyrdquo to select an Actuary to fill an open

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 75: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7587

66

Base Total respondentsRanked on total respondents ndash ldquoMost likelyrdquoUppercase letters denote significant differences at the 90 confidence level

Q6 If there were only one mid- or senior-level opening for a healthcare forecastinganalytics management positionhellipwhich one of the following would you be

most likely to consider Q7 Which one would you be least likely to select

Respondents from Large Hospitals would first select a Financial Analyst while PharmaBiotech respondents favorBiostatisticians

Regardless of which title is selected as ldquomost likelyrdquo the most common reasons cited are analytical abilities andexperiencefamiliarity

healthcare forecastinganalytics position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 76: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7687

67

Credentialed ActuariesWho are they and where dothey fit

GfK Healthcare Marketing research built for youSM February 2010

Three out of five Recruiters and Hiring Managers have a highly positiveimpression of Credentialed Actuaries

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 77: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7787

68

p ess o o C ede t a ed ctua es

Base Respondents who are somewhat or very familiar with Actuaries

Q13 Please rate your impression of hellip [Very positive=7 very negative=1]

29 of Hiring Managers provided ldquotop boxrdquo (very positive) ratings for Actuaries (not charted)

Mean Score

55

56

GfK Healthcare Marketing research built for youSM February 2010

Respondents who have worked with actuaries in the past have positiveimpressions but perceived intelligence and analytical abilities are also

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 78: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7887

69strong motivators of positive impression

Base Respondents who have positive impression of Actuaries (rating 567)

Q13b Why do you have a positive impression of actuaries

Reasons for Positive Impression of Actuaries

GfK Healthcare Marketing research built for youSM February 2010

Respondents from Large Hospitals assign a lower value to someone whomanages healthcare forecastinganalytics compared to other industry

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 79: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 7987

70

Base Total respondentsUppercase letters denote significant differences at the 90 confidence level

Q6b What would you consider to be a reasonable salary range for an experienced individual forthis healthcare forecastinganalytics position

groups

ACD

PharmaBiotech (n=39) (A)

Large Hospital (n=57) (B)

Healthcare Consultant (n=46) (C)

Health PlanPolicy (n=54) (D)

B

B

$100K+

57B

35

59B

63B

The majority of other groups feel a salary of $100000 or more is warranted for this type of position

GfK Healthcare Marketing research built for youSM February 2010

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 80: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8087

71

Perceptual Mapping

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 81: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8187

72

A perceptual map visually displays how various products (or in thiscase industry representatives) are related to one another in terms of

attributes evaluated

Mean ratings of respondents on selected attributes were used tocreate perceptual maps In these maps respondent groups aredisplayed as points on the map while the attributes are displayed as

vectors (directions) By graphically displaying the association betweenrespondents and their corresponding perceived traits perceptual mapsallow marketers to detect points of differentiation misperceptions andnew positioning opportunities in the market

The benefits of the map are threefold First respondent similarity anddissimilarity are easily discernible on visual inspection Specificallyrespondent groups clustered closest together are perceived as mostsimilar

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Maps ndash Introduction (Contd)

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 82: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8287

73

Secondly respondent attitudes relative to attribute fulfillment can alsobe determined by visual inspection Specifically drop an imaginary

perpendicular line from a group label to an attribute vector--the pointof intersection is the rating of the group on the attribute (extend theattribute vector backward through the center if necessary) Groupsprojected closer to the head of the arrow are rated more well-fulfilledon the attribute than groups projected nearer the tail

Finally perceptual maps portray the relationships among attributesThe closer two attribute vectors are to each other the higher thecorrelation between the attribute means If attribute vectors areheading in opposite directions the correlation between attributemeans is negative

At the end of this section is a brief background on how to furtherinterpret perceptual maps

GfK Healthcare Marketing research built for youSM February 2010

Summary

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 83: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8387

74

PharmaBiotech employees are perceived to be strong in mostareas Strategic thinking Problem solving Written and Verbalcommunication skills Knowledge of clinical issues Knowledge of policyissue Leadership skills The same is true for Other Respondents (Health IT Electronics record management Health economicscompany Enterprise risk management CROs)

Large Hospitals and Health PlanPolicy members are ratedaverage on the above They are different primarily in that LargeHospital employees are seen to be poor in Programming languageswhile Health PlanPolicy respondents see strength

HC consulting respondents are quite critical and perceive weakness

on all the attributes

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 84: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8487

75

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

(1 ndash 5)

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

Strategic thinkingKnowledge ofpolicy amp clinical issuesCommunication skill set

Knowledge of programminglanguages

GfK Healthcare Marketing research built for youSM February 2010

Perceptual Map ndash Performance on Key Attributes

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 85: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8587

76

Statements that show no signif

difference across brands1 Supervisory skills

2 Study design3 Financial acumen

4 Knowledge of regulatory issues

5 Knowledge of health systemsfinancing

6 Decision-making skills

1 Leadership skills2 Cross-functional coordination3 Knowledge of policy issues4 Strategic thinking5 Written communication skills

Problem solving

Programming languages

Verbal communication skillsKnowledge ofclinical issues

PharmaBiotech

Health planpolicy

All others

Large Hospital

HC consulting

167

739

2D Fit = 906

GfK Healthcare Marketing research built for youSM February 2010

Appendix Perceptual Map ndash Interpretation

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 86: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8687

77

Safe long-termLow incidence of side effects

Effective

Fast onset

Product A

Product B

Product C

1 By drawing a perpendicular line

from Product A to the attributevectors we see that it rated highly

on Safe long-term and Lowincidence of side effects

Product A is closer to the end of

these vectors than Product B thusit is higher rated on these

attributes than Product B

2 Product B is rated moderately

on Safe long-term and Low

incidence of side effects compared to products A andC However itrsquos position is

stronger on Effective andFast onset than products Aand C

3 Product C is associated

with Low cost but isnegatively associatedwith other attributes

Low cost

GfK Healthcare Marketing research built for youSM February 2010

Fl ibl i l i h ll

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom

Page 87: Untapped Opportunities Health

8132019 Untapped Opportunities Health

httpslidepdfcomreaderfulluntapped-opportunities-health 8787

78Flexible resources responsive to your evolving challenges

Marketing research built for youSM

Linda Krank

Vice President

609-683-6328

lindakrankgfkcom

Katie Fordyce

Associate Vice President

Tel 267-463-1115katiefordycegfkcom

Susan Wild

Senior Vice President

Tel 267-463-1157susanwildgfkcom


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