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Copyright © 2009
Gale Media, Inc.
All Rights Reserved.

September 25, 2004


Emerging Model: Fee-for-Service

Cardinal Health’s new model makes the pharmaceutical channel a petry dish for fee-for-service distribution

By Douglas Chandler

Distributors in the pharmaceutical industry are shifting to a fee-for-service compensation model, giving other industries an opportunity to see how the model plays out on an industry-wide scale. Key question: How do you get manufacturers and customers to agree to pay for services that had previously been "free" in the most efficient of supply chains. Cardinal Health says the key is setting the right fee.

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