New perspectives on biopharmaceutical value-based contracting

Reviewed by James Ives, M.Psych. (Editor)Apr 23 2020

Value in Health, the official journal of ISPOR- the professional society for health economics and outcomes research, announced today the publication of a series of articles providing perspectives on biopharmaceutical value-based contracting and what the future may hold for risk-sharing arrangements. The series was published in the April 2020 issue of Value in Health.

Value in healthcare is measured in terms of the patient outcomes achieved per dollars spent. As such, when payers and policy makers measure the output of healthcare systems, it is not the volume of services delivered that matters, but rather the outcomes. Considering this, there has been an uptick in interest in value-;or outcomes-based contracts. Nevertheless, in the United States there has been more talk than actual implementation of biopharmaceutical value-based contracts. In this themed section of Value in Health, 4 contributors provide balanced and sobering perspectives on value-based contracting and what the future may hold for risk-sharing arrangements."

Joshua P. Cohen, Ph.D., , Guest Editor, an independent consultant based in Boston, MA

In his introductory editorial, "Is There a Future for Value-Based Contracting?," Dr Cohen provides a historical perspective and introduces the other 4 articles in the series:

1. "Are Value-Based Arrangements the Answer We've Been Waiting for?," by Robert W. Dubois, Kimberly Westrich, and Lisabeth Buelt
2. "Pharmaceutical Products and Their Value: Lessons Learned and the Path Ahead," by Anna Kaltenboeck
3. "Managed Entry Agreements: Policy Analysis From the European Perspective," by Monique Dabbous, Lylia Chachoua, Aleksandra Caban, and Mondher Toumi
4. "Using Data From Routine Care to Estimate the Effectiveness and Potential Limitations of Outcomes-Based Contracts for Diabetes Medications," by Michael Fralick, Joshua J. Gagne, Elisabetta Patorno, Raisa Levin, and Aaron S. Kesselheim

"Ultimately," said Cohen, "better alignment of price and value of health technologies and medical services is the key objective of any healthcare system. This can be achieved through multiple means, including value-based arrangements; however, the scope of value-based arrangements is relatively narrow and the logistical hurdles, including data collection and reaching consensus on the terminology surrounding value across stakeholders, remain formidable."