“Doctor Ko Mat Milna, Bas Rate Batao?”
Is this the time to reimagine pharma selling in government institutions? More importantly, with govt seemingly discouraging pharma-HCP contact, is this a cue to reimagine pharma selling at large?
If you haven't read this article or the surrounding hullabaloo on social media since yesterday, you either live under a rock or are extremely busy. For the latter, it is the reason My Pharma Reviews exists.
The recent ban by the DGHS on MRs visiting doctors in central government hospitals has sent shockwaves through pharma corridors. As per the order, MRs must now share updates via email or digital channels—no more waiting hours outside doctor cabins, no more hurried pitch before the next patient walks in, and certainly no more coffee cups with casual nudges of “Sir, try this new molecule.”
The initial reaction (on social media, at least) across marketing and sales teams has been predictable—panic about lost access, reduced prescriptions, and vanishing relationships. But behind this noisy frontline of MRs lies another, often under-appreciated team—the Institutional Business Team, sometimes known as Key Account Managers or KAMs. Their job isn't to “detail” a molecule to a physician but to talk contracts, pricing, and supply logistics with government procurement bodies.
So, what happens now? Will the KAMs take centr stage? And more importantly—are they ready?
In several pharma companies, institutional sales teams have long operated in the shadows. Their job is seen as transactional—quote a price, ensure supply, and move on. When you talk to some of these managers, they sound like they've surrendered to fate. “It’s all about price and margin,” they say, as if it’s a divine truth etched in stone.
Let’s be honest—price matters. Especially when you're dealing with government tenders, limited budgets, and procurement teams trained to compare like-for-like. But reducing pharma sales to a “lowest bid wins” game is a missed opportunity. It’s like selling a luxury car by only talking about the fuel tank capacity.
Enter: Negotiation skills, game theory & behavioural economics.
Pharma’s institutional teams must upskill, and here’s where things get interesting (and yes, even a bit fun). Procurement isn't just about price; it’s a multi-player game. If your competitor underbids, will they deliver reliably? If you price too high, will you be excluded? Techniques like the Prisoner’s Dilemma, Tit-for-Tat strategies, and Nash Equilibrium (google them, or talk to me :)) help account managers think beyond price. For example: “If I offer a bundled tender for three molecules with one at cost and two with margin, what’s my competitor likely to do?
Buyers aren't robots. Humans—even procurement officials—make irrational choices. Concepts like anchoring (showing a higher-priced option first), loss aversion (“If you go with the cheaper supplier, here’s what you might lose”), and social proof (“Other hospitals have adopted our formulation with great results”) can shift conversations away from price to value. This is more than a buzzword. Everyone says it. Very few use it. KAMs must be trained to articulate what the buyer gets for the price.
Better supply chain reliability
Superior compliance (less pilferage, fewer recalls)
Packaging that reduces nurse admin time
Stability that reduces cold chain costs
This is where the SWOT slide becomes important, as well as a clear understanding of your Core Value Proposition and Business model. These are concepts which marketing folks aren't comfortable with, leave alone institutional sales teams.
If we don’t teach teams to sell value, we will forever be dancing in the “price rain dance,” hoping for margin from the skies.
Pharma companies often don’t even calculate their true cost of serving the institutional channel. A KAM must be trained to map the end-to-end value chain [API sourcing → Manufacturing → Logistics → Warehousing → Order to cash cycle → Returns → Penalties → P&L]
Once you see where value leaks, you can either plug it or price for it. Imagine if institutional sales teams could say, “Sure, we’re ₹1 higher per vial, but our order fulfilment rate is 99.8% vs. the tender average of 85%. Your cost of stock outs just vanished.”
Today, many KAMs treat revenue like a batting score and costs like a weather forecast: “It happens, what to do?” But in a post-MR-ban world, KAMs must own the mini-P&L of each account.
What are we earning?
What’s the cost to serve?
Where are the levers?
By taking a “micro-CEO” mindset, KAMs move from passive participants to active strategists. P&L as you see, isn't for CFOs alone.
So… What Next?
Upskilling is Urgent – Companies must immediately invest in programs to teach game theory, behavioural economics, negotiation, and P&L analysis. Not in theoretical webinars, but in live deal simulations.
Digital Enablement – With emails replacing field calls, it’s not just what you say, but how well you say it. One-page value stories, sharp infographics, and ROI calculators must replace dull tender specs.
Mindset Shift – The role is no longer sales, it’s partnership. KAMs must stop thinking of themselves as sellers and start acting like enablers of efficient healthcare delivery.
Institutional selling too, should be to the brain, not the budget.
The DGHS ban is not the end of the road; it’s a forced detour. MRs have long relied on charm, routine visits, and the occasional sample to win hearts. That road seems now closed. The new path demands rigour, strategy, and insight. Pharma companies that can build smarter, more capable institutional sales teams will not just survive this change—they’ll thrive.
After all, if the doctor is no longer available for a quick chat, maybe it’s time we learn to talk to procurement with logic, numbers, and—why not—a bit of behavioural magic.
Or as one cheeky KAM might soon say, “Sir, price toh sabhi poochte hain. Par aap value dekhoge toh humse hi deal karoge!”
If you need help with this, you know who to ping!
Agreed but there is one more aspect in this, where MR has some connect with the doctors they tend to detail in parking lots, outside eatery outlets (Mess) etc.
This I have seen in CIP Ranchi where MR visit is banned post COVID. Usually HCP's stand and listen to field when they detail.