Value-Based Contracts on the Rise

With the increasing adoption of high-price biologic therapies that offer potential long-term relief for small patient populations, other payment models like value-based contracts are being hotly debated by pharma, providers, and payers. These models account for the long-term benefits of the treatments and whether a given patient actually sees such effects.

According to , “Unlike the current pricing models, VBCs don’t rely on pharmacy benefit managers (PBMs) and rebate programs to determine cost. Instead, the pharma companies negotiate with payers to determine a set of measurable outcomes for the patient. Payment for the treatment is then tied to whether or not those outcomes are met.”

To read more, click here.

(Source: Pharm Exec, January 11^th, 2023)