The use of pay-for-performance for drugs: Can it improve incentives for innovation?
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.
KeywordsNational Health Service Expand Disability Status Scale Health Econ Evidence Collection Outcome Uncertainty
Unable to display preview. Download preview PDF.
- Pollock A. Pricing Pills by the Results. New York Times; 14th July 2007.Google Scholar
- Puig Peiró, R. Mestre-Ferrandiz J, Sussex J, Towse A. Literature review on Patient Access Schemes, Flexible Pricing Schemes and Risk Sharing Agreements for medicines. Podium presentation. ISPOR 14th Annual European Congress, Madrid, Spain: 5-8 November 2011. Available at: http://www.ispor.org/research_pdfs/39/pdffiles/RS1.pdf [Last accessed 28 November 2011]Google Scholar
- SCRIP. NICE set to recommend Stelara for psoriasis. SCRIP World Pharmaceutical News. August 17th 2009.Google Scholar