Making Outcome-Based Payment a Reality in the NHS. Phase Two: Practical Considerations

Cole, A., Cubi-Molla, P., Elliott, R., Feast, A., Hocking, L., Lorgelly, P., Payne, K., Peek, N., Sim, D., Sussex, J., Zhang, K and Steuten, L.

Research Paper
December 2021

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Outcome based payment (OBP) is a flexible payment mechanism that links the price the NHS pays for a medicine to the outcomes it achieves in practice for NHS patients. In 2019 we published the results of a research study which described that OBP could help to accelerate patient access to some new medicines, ensure close monitoring of real-world patient benefit, promote value for money in NHS spending and support innovation.

In this report we explore the practical considerations for implementing OBP in the NHS. The findings are based on desk research on sources of outcome data, interviews with NHS staff, focus groups with patients, workshops with an expert Steering Group and simulation modelling of an outcome-based payment scheme.

The report is the result of a research grant awarded to The Office of Health Economics, RAND Europe and University College London in collaboration with the University of Manchester, by Cancer Research UK and Greater Manchester Health and Social Care Partnership (GMHSCP).

Please cite this report as: Cole, A., Cubi-Molla, P., Elliott, R., Feast, A., Hocking, L., Lorgelly, P., Payne, K., Peek, N., Sim, D., Sussex, J., Zhang, K and Steuten, L., 2021. Making Outcome-Based Payment a Reality in the NHS. Phase 2: Practical Considerations. OHE, RAND Europe, UCL, University of Manchester and Cancer Research UK Research Paper. Available here.

See here for the supplementary report.