In the face of stagnant healthcare budgets, and evergrowing demand for care, value-based pricing has real potential to bring value to pharma companies, payers, patients and providers in advanced health systems, delivering ‘hope not hype’ to critical therapeutic areas like oncology and cardiovascular. But to unlock value, healthcare stakeholders must consider the following practical implementation tips: defining and measuring outcomes effectively, choosing appropriate patients, and managing costs efficiently.
Value-based pricing (VBP) of pharma products has exciting potential to help
improve patient outcomes – at an affordable cost. The concept of VBP has been around for some time, but healthcare stakeholders are still grappling with what it means from a practical implementation perspective.
We believe that, by following these three key tips below, pharma companies
and payers can unlock the “value” component of VBP:
- Keep it simple: VBP can be highly complex, so an emphasis on simplicity
should help all parties more accurately measure the effectiveness of
- Focus on the appropriateness of care: Choose the right drugs for the right
patients at the right time, to give a better chance of positive outcomes.
- Keep transaction costs at reasonable levels: Both pharma companies
and payers may have to invest significantly in VBP, so robust cost
management can help deliver an affordable cost of treatment.