Guest Post

Innovative Contracting: Healthcare Reform A Key Catalyst

Posted on Tuesday, January 17, 2012

By Katya Svoboda and Alexis Matos Given the difficulty of implementing risk-sharing deals in Europe, should manufacturers in the U.S. even bother setting up these complex arrangements? After all, these innovative contracts, typically tied to a drug’s performance, are notoriously tough to put in place. In many cases the systems required to capture the relevant data are missing, and the lack of coordination between medical and pharmacy benefits means conflicting incentives could be operating within the same payer organization. Still, we believe the Affordable Care Act is the necessary catalyst for more innovative contracting. Three features of the ACA have the greatest potential for stimulating interest in developing innovative contracts:  comparative effectiveness research, private health exchanges, and a biosimilar approval pathway. Let us explain. One of the sticking points of pay-for-performance (P4P) agreements is getting payers and product makers to agree on the actual standards against which a given drug or device should be measured. Since the ACA supports comparative effectiveness research efforts, the law facilitates the creation of outcomes-based standards that all parties can agree on when establishing contracts. Enhanced data systems will then help payers and manufacturers measure and share outcomes markers. New health care exchanges, which are expected to insure more than 17 million new patients...

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Building The Greater Real Endpoints Community

Posted on Tuesday, January 17, 2012

  You know that old saw “it takes a village”? Before you roll your eyes, consider this: the same underlying premise embodied by this oft-uttered phrase is what’s driving the new openness called “externalization” at drug and device makers. Simply put, in the past few years, product makers have realized that they don’t have a lock on innovation and need to find ways to access new ideas as they reshape their pipelines. So what are they doing? Partnering. We want to partner too. At Real Endpoints, we are well aware that the rapidly changing world of reimbursement makes it impossible to cover the news flow to the degree — and with the rigor– to which we aspire all the time. And we’re also well aware that while we may offer one take on an event, there may be other opinions and analysis that are valuable, both to the readership and to us. We want Real Endpoints to be a forum where ideas about reimbursement are exchanged and debated. That means opening RE to the wider community, not just in the comments section, but in terms of the actual content provided. As such, one of our goals is to bring you a steady stream of thoughtful guest posts on topics...

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