Case
Studies
#1.
Changing Lose-Lose to Win-Win
The manufacturer
of a fertility treatment came to BDF for ideas on how to increase
usage of its infertility therapy. The treatment, which was effective
in about half the cases, cost $8,000 and was not considered
reimbursable.
We first
examined the market and the psychology of potential users. We
found that most couples seeking fertility treatment also explore
adoption, a process that typically costs upwards of $20,000.
Potential patients were caught in a terrible dilemma. They could
opt for treatment and gamble a significant portion of their
adoption funds on a therapy that had a fifty-fifty chance of
success or they could adopt and forgo the possibility of ever
having their own child. Understandably, patients shied away
from treatment.
We needed
a win-win solution that reduced risk for patients without hurting
the company.
We found
the solution in the simple law of averages. The treatment was
50 percent effective. It cost $8,000. We recommended the company
switch to performance pricing. If the treatment worked, it would
cost $16,000. If it didn’t, they paid nothing. The company would
make the same amount of money as it would charging everyone
$8,000, and the patients could try the treatment without fear
of gambling away precious adoption resources.
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