Value-Based Pricing

Research by OHE and the University of Washington into how uncertainty-related novel elements of value could be included in an Augmented Cost-Effectiveness Analysis has been published in Journal of Managed Care & Specialty Pharmacy (JMCP). The research discusses what has been or could be done to measure these elements and looks at empirical research to date.

A COVID-19 vaccine is needed now, but timelines (12-18 months) create large market risk. By the time a vaccine is ready, the crisis may have passed. A CGD Note explores three options: business as usual – which may lead to promotion of an inferior vaccine or fierce country competition for supply – and two models (cost- or value-based), with countries pre-committing to purchases meeting specified efficacy. The authors prefer a value-based model.

Adrian Towse presented evidence that transparency of process reduced corruption and improved competition. Evidence was, however, against price transparency for on-patent medicines. It will reduce access in low income countries. In generic markets, price transparency could improve efficiency, although it risks collusion by suppliers. There is therefore a case for buyers sharing, but not publishing, price data for off-patent medicines.

OHE has published a white paper discussing the relative merits and shortfalls of current approaches to defining, estimating, and applying cost-effectiveness thresholds in HTA.

This will be accompanied by a (forthcoming) research paper exploring bargaining in threshold setting

TB kills 1.6m people annually - the world’s deadliest infectious disease. The Market-Driven, Value-Based Advance Commitment (MVAC), creates and guarantees a market for better TB treatment. The final “blueprint” has four pillars: HTA to inform countries’ value-based purchase commitments; commitment guarantees underwritten by a development bank; industrial policy alignment; and a governance structure credible to MIC payers and industry.

OHE, in collaboration with RAND Europe, University College London (UCL) and University of Manchester (UoM), has been awarded a new research grant from Cancer Research UK in partnership with Greater Manchester Health & Social Care Partnership (GMHSCP) to further explore the potential of implementing outcome-based payments for cancer treatments.

The Trump Administration proposed an International Pricing Index for reimbursing physician-administered Medicare drugs. A conservative thought leader proposed a different basket of 'market-oriented' countries. These differ markedly from the U.S. Their governments have a central role in medicines purchase, in contrast to U.S. reliance on private markets.

OHE Lunchtime Seminar with Steve McKenna, 17th September 2019. The seminar will examine conceptual and practical aspects of measuring value in health care.

At the recent ISPOR Annual Conference, OHE’s Chief Executive, Professor Graham Cookson announced a new programme of work on Value 2.0: Assessing the Value of US Healthcare to be funded by PhRMA. Graham was joined by the Innovation and Value Institute’s Executive Director Jenn Bright, and Harvard Medical School Professor Bapu Jena.

Market-Driven, Value-Based Advanced Commitment (MVAC) is a new mechanism to help re-direct private-sector R&D investments where they’re needed most. We propose to use MVAC to encourage investments in tuberculosis (TB), which affects 10 million people worldwide. In this blog post, we reflect on the first round of feedback on our consultation draft on MVAC.

Pages

Subscribe to RSS - Value-Based Pricing