Monday, November 14, 2016

Brief Blog: Crisp Review of Pharma, Medtech, and Value-Risk Contracting

Precision Health Economics continues to put out concise but satisfying reviews of key policy topics in value based reimbursement and health system change.

Last June, they produced an interesting, multi-faceted blog on PBMs, prior authorization, and copays, pulling together perspectives of patient, pharma, PBM, health plan, health system, and public health (here).    Now, this November, a different team at Precision Health Economics provides an open access review of  the challenges and regulatory barriers involving "value based agreements" between pharma and payers.  See the full article at Health Affairs Blogs, here.

The article is authored by Alison Sexton Ward, Mark Linthicum, and Alison Silverstein of PHE, and by Michel Drozd and Joe Vandigo of PHRMA.  They link back to a 2013 "good practices" memo on value-based risk sharing by ISPOR (Garrison et al., here), and provide an update and multi-viewpoint strategic and tactical assessment.

While the title of Ward et al. is value-based agreements for drugs, many of the principals will apply in medtech (or genomics) as well.  For another open-access work by EY on strategic drug pricing, by Licking and Garfield, here.

Abbreviations to track include -

  • VBP - Value-Based Purchasing
  • VBA - Value-Based Agreements
  • PBRSA - Performance-Based Risk-Sharing Agreements