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The use of pay-for-performance for drugs: Can it improve incentives for innovation?

  • Adrian Towse
  • Louis Garrison
  • Ruth Puig-Peiró
Part of the Economía de la Salud y Gestión Sanitaria book series (SESGS)

Abstract

There has been a growth in interest in schemes that involve “paying for pills by results” (Pollock, 2007) i.e. “paying for performance” rather than merely “paying for pills”. Hard-pressed health care payers want to know that they are getting what they are paying for — health and other benefits for patients. Pharmaceutical companies are not prepared to accept prices that they think do not reflect the innovative value that their expensive R&D investments are bringing to patients, the health care system and the broader economy. Paying for outcomes delivered is a way of “squaring the circle”. Payers know they are getting value. Companies get a return that incentivises future innovation.

Keywords

National Health Service Expand Disability Status Scale Health Econ Evidence Collection Outcome Uncertainty 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Healthcare Ibérica SL. 2011

Authors and Affiliations

  • Adrian Towse
  • Louis Garrison
  • Ruth Puig-Peiró

There are no affiliations available

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