Recently, the Network for Excellence in Health Innovation (NEHI) released a white paper, “Rewarding Results: Moving Forward on Value-Based Contracting for Biopharmaceuticals” that explores new pricing and contracting arrangements for prescription drugs that are based on results such as improved patient outcomes, rather than the volume of drugs sold.
The NEHI white paper provides background on the issue, examples of value based contracts already in place, obstacles to broader adoption, as well as policy recommendations about how to best implement value based contracting in the future.
NEHI’s work is especially relevant in Massachusetts given the current debate over prescription drug pricing and their impact on health care costs. MassBio was one of numerous stakeholders who joined together with NEHI to study the critical issue of prescription drug prices, along with payers, pharmacy benefit managers (PBMs), and others.
With this white paper as a starting point, MassBio will work together with NEHI and other stakeholders to consider how value based contracting could work in Massachusetts. With a strong commitment to universe health care, innovative payers, and a leading life sciences industry, Massachusetts is an ideal place to test out innovative payment mechanisms such as value based contracts. With many new treatments and cures in the pipeline, now is the time to consider these new approaches.
You can read more about NEHI’s white paper including access to the full report and executive summary by clicking here.