Overcoming Challenges Of Outcomes-Based Contracting For Pharmaceuticals: Early Lessons From The Genentech – Priority Health Pilot

Conclusion Outcomes-based agreements are a natural extension of a health care delivery-and-reimbursement environment that is moving toward value. With provider organizations taking increasing accountability for both costs and outcomes, it is becoming incumbent upon manufacturers to demonstrate the economic, clinical, and quality-of-life benefits of their medicines. The pilot described here was successful in that Genentech and Priority Health both learned how to overcome clinical, operational, and contractual challenges and demonstrated that this type of agreement is feasible. Genentech and Priority Health believe pilots like the one explored here are the right way forward. In providing resources to advance this work, we are creating strategic relationships that are essential to today’s focus on value. The success of these types of efforts depends on leaders across stakeholder groups who are willing to champion the work, take on a learning mind-set, and share a commitment to being part of a solution to health care cost, data, and access issues. As such, we measured the success of this pilot in operational learnings, as opposed to immediate financial benefits. Although not a panacea, outcomes-based contracts may be a useful tool in aligning cost and value, driving health care efficiency, and ensuring that appropriate patients benefit from innovative medicines. Such efforts can have impact only if scale can be achieved. Although pilot agreements such as the one described here ...
Source: Health Affairs Blog - Category: Health Management Authors: Tags: Costs and Spending Drugs and Medical Innovation Payment Policy Outcomes-based agreements Source Type: blogs