Fair Market Value vs Market Value In Clinical Trials - What is The Difference?
Today we are going to discuss the concept of fair market value and how it differs from regular market value in clinical trials. Let’s discuss the background for those who do not have knowledge about it. The initial guidance that we receive from OIG in 2003 was for drug manufacturers and pharmaceutical sponsors and how they paid the involved doctors in clinical trials and demanded it to be appropriate and reasonable. Then they labeled it as fair market value.
The one fundamental concept that we all need to understand is the difference between fair market value and market value as it applies to clinical trials. There are some websites available as Cr and ELLs as well to understand how the fair market value is very different from regular market.
Fair market value in clinical trials goes beyond the concept of appropriateness, consistency of process, reasonableness and how much a person is eager to pay for your commodities.
To illustrate what fair market value is not, let’s assume that a sponsor pay a budget for a specific site according to particular study, this do not mean that he will pay the same budget for the same site on the basis of another studies that does not meet his needs.