Now that you know a little more about value-based contract models, we`re taking a closer look at the benefits of this payment model. First, it is important to note that value-based contracts limit the payer`s financial risk by providing price reductions or refunds for inefficient processing. In addition, there are other important benefits associated with value-based contracts: in drugs, value-based contracts often reflect performance agreements that reimburse the predetermined results of a drug or biologikas. Here, the value is measured in the form of patient outcomes per dollar spent. These drug value-based contracts aim to improve patients` access to effective but often costly drugs and biologics by linking reimbursement, coverage or payment of a product to clinical or use outcomes. In this context, drug manufacturers share with payers the risk of success or failure of their drugs (hence the term “risk-sharing agreements”). Value-based contracting, also known as results-based contracting, is a kind of payment model that links the price of a drug to its performance development. This is in stark contradiction to other payment models in the health sector, where drug prices are determined by data collected during clinical trials, a controlled environment that is not always followed by real-world performance. So how do value-based contract models work? It`s easy. When a drug performs, payers (insurers, supplier networks) pay the full price.
If this is not the case, the payer may receive refunds or rebates from the manufacturer. In the future, we need to improve the ability to implement value-based agreements. If major interest groups are unable to deliver on their promise to provide innovative therapies to save lives while making them more affordable, the industry will take a big step backwards to simply focus on price. As the pharmaceutical industry continues to offer innovative therapies to meet the unmet needs of small patients, we must continue to seek market-based solutions that expand access to medicines and continue to promote innovation. In addition, the Affordable Care Act influenced a volume-to-value transfer, which extended to payment settlement models between health insurers (or cost recipients) and pharmaceutical manufacturers. Such a delivery strategy includes value-based contracts, designed to align drug prices with how the drug ranks outside of clinical trials or in the real environment.3 There is an apparent level of comfort with the status quo. According to a survey conducted last year, less than 20% of respondents – health leaders – said that risk-based contracts would be the norm in five years. For the second time, as part of our Value Exchange Summit, Deloitte has locally convened ways to meet challenges and promote meaningful changes in U.S.
health care. Discussions focused on life sciences and pharmaceutical innovation and focused on the central issue: how can companies accelerate the future of value-based contracts to positively influence patient outcomes and help reduce the total cost of care contracts Value-based contracts (sometimes called risk-sharing agreements or results-based contracts) are a kind of innovative payment model that can brings together two important players – health organizations and biopharmaceutical manufacturers – to provide medicines to patients.