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.

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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.

Bringing the ecosystem together: Accelerating biopharma value-based contracts

Next-generation therapies might require next-generation payment models

As part of our third annual Value Exchange Summit, Deloitte brought together 40 thought leaders from across the health care ecosystem—biopharmaceutical companies, health plans, pharmacy benefit managers, and health systems—to discuss strategies to improve patient access to next-generation cell and gene therapies, and innovative payment models that could be used to cover the cost.

Participants specifically focused on three challenges facing cell and gene therapies:

  • Financing, affordability and reimbursement innovation
  • Finding, measuring, and sharing value
  • Patient-access orchestration

Find out how biopharmaceutical companies can work with the health care ecosystem to help these therapies reach their potential.

Read the takeaways from our previous two Summits:

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

Attendees brainstormed 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. 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

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.

What do stakeholders need from VBCs?
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.

How do VBCs play out in the therapeutic areas?

Let’s make this work.

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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.

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