Risk-sharing Arrangements

Performance-based risk sharing arrangements for prescription medicines and other treatments are attractive to payers because they promise to base what is paid for a treatment on whether/how well it actually works. Programmes typically include data collection and either implicitly or explicitly link pricing, reimbursement and/or revenue to what the data show.

To celebrate its 50th Anniversary, OHE held a conference this week, The Challenges and Economics of Drug Development in 2022, which explored the likely evolution of the key aspects of drug development over the next ten years. The conference was attended by over 100 participants from the public and private sectors; speakers and panellists included leaders from drug regulatory agencies, health technology assessment (HTA) groups, payers, the pharmaceutical industry, private foundations, and academia.

OHE team members have been active in a number of external seminars, conferences and workshops. These included gatherings of academic experts, discussions involving governments, and meetings organised by the pharmaceutical industry.

Interest is growing in schemes that involve “paying for pills by results”, that is, “paying for performance” rather than merely “paying for pills”. Despite its intuitive appeal, this approach is is highly controversial and is disliked by many health care providers, policy makers, and pharmaceutical companies.

During the last quarter of 2011, OHE team members were involved in discussions and presentations in a range of forums, covering each of OHE's three areas of focus. This post reviews their activities.

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