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Perspectives

Value-based pricing for pharmaceuticals

Implications of the shift from volume to value

In a new value-driven health care system, pharma companies will need to provide pharmaceuticals that demonstrate real, measurable value to stakeholders.

Health care reform and industry trends are driving pharmaceutical (pharma) companies to rethink strategy in their US pursuits. The move to bundled payments, accountable care, comparative effectiveness research (CER), evidence-based medicine (EBM), and payments linked to performance are the direct result of regulatory and market pressures to reduce health costs without compromising safety and quality. For pharma companies, these trends represent a paradigm shift in the structure of the US market and call for innovative approaches to commercialization and pricing. In a new value-driven health care system, pharma companies will need to provide pharmaceuticals that demonstrate real, measurable value to stakeholders. As a result, value-based pricing–the alignment of incentives between purchasers and manufacturers–is getting increased attention.In this Issue Brief, we summarize what is known to date about value-based pricing and identify opportunities for additional exploration.

In this issue brief, we summarize what is known to date about value-based pricing and identify opportunities for additional exploration.

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