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)


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.


National Health Service Expand Disability Status Scale Health Econ Evidence Collection Outcome Uncertainty 
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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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