Outcomes-Based Pharmaceutical Contracts Can Shape the Future of Healthcare

I think that it would be a very good idea if drug costs, particularly for the most expensive ones, were based on outcomes for patients under treatment. This is to say, payment for the drug would be based on evidence that the drug is both efficacious and safe. Outcomes-based drug contracts were the basis for a recent article (see:Outcomes-Based Contracts Can Shape the Future of Health Care) and an excerpt is presented below: Over the past decade, much of the health care economy has shifted from rewarding quantity (fee-for-service) to instead rewarding quality (outcome- and value-based payments). And yet, pharmaceutical manufacturers and pharmacy benefits lag in this transition. Drugmakers continue to be compensated based on the volume they sell and not whether their products are making people healthier....A new standard unlike traditional drug pricing, outcomes-based contracts hold the manufacturer accountable for its product by linking its revenue to whether or not the medication delivers on its intended outcomes. A PBM negotiates a price and measurable outcomes with the drug manufacturer on behalf of a health plan. If the treatment delivers the intended outcomes, the plan will pay the agreed-upon price.But if a patient does not respond as expected, experiences adverse effects, or is unable to complete a course of treatment requiring a change to a follow-on medication, the drugmaker will issue a rebate for part, or all, of the cost....This type of money-back...
Source: Lab Soft News - Category: Laboratory Medicine Authors: Tags: Cost of Healthcare Electronic Health Record (EHR) Healthcare Information Technology Hospital Financial Pharmaceutical Industry Quality of Care Source Type: blogs