industry update

Should value-based contracting extend to ad agencies?

September 17, 2019

One of the promises of the Affordable Care Act was to change the healthcare model from strictly fee-for-service compensation to value-based contracting. This new operational paradigm benefits the entire healthcare ecosystem: doctors, patients, health systems, payers, and pharmaceutical companies.

So the latest question is, why aren’t healthcare marketing agencies contracting this way too? Shouldn’t the agency compensation model change along with our clients and their customers? When will archaic ideas like the billable-hour be cast away for a compensation model that incentivizes efficiency and performance, instead of time and hourly rates?

Heartbeat’s SVP of Strategy, Hudson Plumb, and Saatchi & Saatchi Wellness’ SVP of Analytics & Data Science, Kevin Troyanos, were the agency heavy-hitters tasked with taking an in-depth look at the state of value-based contracts in healthcare, and the very real opportunity for agencies to get in on the action. Published by Pharmaceutical Executive magazine, you can check it out on

Value-Based Agency Contracting Clears a Path to Better Outcomes for All