Perspectives

Value-based contracts

Insights into the volume-to-value transformation

For the industry to take hold of them, the obstacles of life sciences and biopharma value-based contracts need to be discussed openly, and earnestly. This series will help put context around patient access, health care stakeholder viewpoints, and the therapeutic areas that are leading the charge.

The state of the market

Unsustainable health care cost burdens and variable patient outcomes are accelerating the volume to value transformation of health care. There is growing interest in value-based contracts (VBCs) between pharmaceutical manufacturers and payers/providers as one approach to help with this shift to value-based care. Despite this growing interest, adoption has been slower for numerous reasons including misaligned incentives, difficulty tracking patient outcomes, and lack of consensus on industry standards. The lack of technology to efficiently administer and adjudicate agreements is also a common concern.

Accelerating biopharma value-based contracts

Forging the way to impact patient outcomes

For the second time, Deloitte convened health care thought leaders as part of our Value Exchange Summit to identify ways to overcome challenges and drive meaningful change in US health care. Discussions focused on life sciences and pharmaceutical innovation and addressed the core question: How can organizations accelerate the future of value-based contracts to positively impact patient outcomes and help reduce the overall cost of care?

Participants helped identify pathways to making the volume-to-value transformation possible by sharing:

  • Challenges preventing the widespread adoption of VBCs, including trust, regulatory, and risk issues
  • Solutions for overcoming VBC barriers and actions to move forward in adopting VBCs within their organization
  • Success attributes for VBC solutions from flexible and transparent to scalable and engaging

Common challenges and needs to make the volume-to-value transformation possible:

Three key solutions to help push VBCs forward and into widespread use:

  • Industry alignment on value definitions 
  • Data and analytics platform
  • Scenarios and pilots

Linking value to life sciences treatments and innovation via patient outcomes is on the horizon. However, drug pricing continues to be a top priority for the US and regulation that imposes requirements for value-based contracts is a very real possibility. Companies that begin the volume-to-value transition now can be a competitive step ahead of those that lag.

Forging the way to impact patient outcomes

Value-based contracts: Improving patient access

Deloitte has the breadth and depth of capabilities to help the life sciences and health care industry overcome challenges to enabling VBCs. Find about our services.

What do stakeholders need from VBCs?

Taking value-based contracts from experimentation to mainstream

In the spirit of transitioning from volume to value in health care, VBC’s offer attractive solutions. However, VBCs aren’t one-size-fits-all and they aren’t widely adopted...yet. Moving a VBC from idea to implementation requires input, collaboration and transparency from all stakeholders. So we’re facilitating it.

Almost 30 participants (representing a cross-section of the industry including health plans, health systems, pharmaceutical manufacturers, and patient organizations) came together at Deloitte’s inaugural Value Exchange Summit in Chicago. We asked them to think big, and without constraints--in a perfect world, how do VBCs transform health care? Here's what they said stakeholders need.

 

How do VBCs play out in the therapeutic areas?

Let’s control the cost and improve the outcome 

The health care system is tasked with providing desired access to new innovative therapies while controlling overall health care spending. It’s a tall order. And VBCs can act as a catalyst towards that goal. But to do that, widespread acceptance of VBCs must be accelerated.

We asked participants from three specific therapeutic areas--oncology, cardiovascular disease and inflammation—to discuss the obstacles in order to determine a pragmatic roadmap to advance VBCs. Each area determined their top two factors halting widespread VBC implementation, the top capabilities needed to overcome those factors, one small action step and a “moon-shot” scenario.

Powering value-based contracts with technology: How Deloitte can help

Many organizations lack the necessary infrastructure and resources to efficiently administer and adjudicate VBC arrangements for value-based care.

The ConvergeHEALTH platform is a secure, cloud-based big data environment designed to streamline the entire end-to-end VBC process. The platform can handle the most complex health care data, drives efficiencies and economies of scale for VBCs while instilling trust through transparency and objectivity.

Want to see how it works? Request a demo.

Deloitte reserves the right to determine who will see the demonstration. Your interest does not guarantee a demo of the solution. 

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