Alignment story: What to do when physician moves territory? - 07/24

During a recent client call, I encountered a question (related to scenario 2) that left me momentarily speechless (it’s usually my wife’s questions that make me speechless 😀)

In the context of physician alignment, HCPs (physicians) are typically associated with specific territories, which in turn are managed by sales representatives. This alignment ensures prescriptions from HCPs are credited to respective rep. 

While physicians usually practice in one location for an extended period, there are occasional instances where they move across territories. Let’s explore two scenarios:

1. Zip Code Realignment: 

• Suppose a physician with 10 TRx (total prescriptions) in H1’24 practices at the same location, but their zip code is now aligned to a new territory.
  

• In this straightforward case, the historical TRx count (along with patient count) is assigned to the new territory. Consequently, the new representative inherits a higher baseline and goal due to increased potential.
  

• For example, if the zip code is realigned to the new territory starting Q3’24, the new territory’s goals will include an additional 10 TRx due to the HCP’s alignment.

2. Physician Relocation:

• Now consider a more complex situation: a physician with 10 TRx in H1’24 moves their practice to a new location, resulting in a new territory assignment.
  

• Since the HCP no longer has the patient base from their old practice, they cannot contribute the same TRx in Q3’24 as in the previous quarter.
  

• As a business rule, the new territory’s goals would still include the 10 TRx, reflecting the HCP’s baseline performance.

• However, this case may be treated as an exception. Leadership decisions could involve either removing the entire TRx from the new territory’s goals (since patients from the old territory continue treatment elsewhere) or splitting the TRx between the new and old territories.

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