Novartis and University of California-Berkeley Researchers Estimate $93 Billion Wasted Yearly Across Healthcare Stakeholders, Propose Value-Based Pricing System

Researchers at the University of California-Berkeley and Novartis note that $93 billion is wasted yearly in addressing healthcare utilization management, impacting pharma, providers, patients, and payers. The authors propose a value-based system where an independent health technology assessment, such as the Institute for Clinical and Economic Review (ICER), determines a drug’s efficacy and cost-effectiveness.

“Novartis gets some praise for being willing to embrace cost-effective drug prices, but health policy analysts are skeptical the industry would truly adopt the idea for its best-selling drugs, particularly if the appropriate guardrails were put in place to ensure broader budget impact was controlled.” Read more here.

(Source: Sarah Karlin-Smith, Pink Sheet, 8/9/21)