VBCs: Are They Working?

As an observer, it can be difficult to find out what ’s happening with value-based contracts (VBCs). The fanfare that accompanies the announcement of a deal invariably gives way to a long period of silence, a good sign if you subscribe to the mantra that no news is good news, but if you don’t, there is cause for concern.The smattering of reports on the topic suggest that green shoots are emerging. A recent survey of 120 payers conducted by the ORC International and commissioned by Change Healthcare, found that payers reported an average saving in medical costs of 5.6% from VBC strategies with an accompanying 77% improvement in care quality, provider relationships and patient engagement.Yet, the same report highlighted ambivalence; more than half of payers reported dissatisfaction with current analytics, automation and reporting. On balance, Dan Leonard, President and CEO of the National Pharmaceutical Council (NPC), is optimistic. “We hear from payers and manufacturers that the impact is either neutral to positive in terms of improving patient access to treatments. There are very few negative reports out there,” he says.That said, you can only measure what you know about. “Our study found that for every public contract we are aware of there are three we’re unaware of. Most of these agreements are not publicly announced; if we only know about one in every four contracts then we could be underestimating the prevalence and potential impact of these arrangements in t ...
Source: EyeForPharma - Category: Pharmaceuticals Authors: Source Type: news