Stephen Majors, Director of Healthcare Practice for DuckerFrontier, was quoted in Morning Consult‘s article, “In Oklahoma, A Warning for Proponents of Value-Based Pharma Payment.”
As pressure on Congress to address rising costs of prescription drugs mounts, lawmakers on the powerful Senate Finance Committee and pharmaceutical companies have coalesced around value-based payment, or setting drug prices based on efficacy, as a method to reduce drug costs.
Stephen Majors, director of health care practice at DuckerFrontier, explained that value-based pricing involves setting initial prices based on the magnitude of the benefits, taking a more holistic approach to assessing impact on the health care system by considering the cost of care for a patient in the absence of a treatment. Outcomes-based contracts focus on narrower goals based on the achievement of milestones, such as whether a patient is cured, and offer refunds or rebates from manufacturers if certain outcomes are unmet — as in Oklahoma.
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