Can outcome-based pricing cure an ailing healthcare industry?
The rising cost of healthcare is placing increasing pressure on the entire healthcare delivery chain, including providers, payers, producers, and patients. In a recent Bio Pharma poll, more than 80% of healthcare executives identified pricing as the industry’s most pressing issue.
Rising healthcare costs are driven largely by a distorted reimbursement model, which has helped make healthcare spend a top budget item for many governments across the globe. The United States, for example, dedicated 17% of GDP to healthcare in 2015. Unfortunately, increased spending has not had a significant impact on outcomes: Despite its high level of healthcare spend, the U.S. ranked 34th in the Bloomberg 2017 Healthiest Country Index.
Several major industry players have begun to experiment with outcome-based pricing models as an innovative approach to align reimbursements more closely with positive outcomes, while simultaneously bringing greater stability and predictability to pricing in the life science industry.
In this paper you’ll learn about:
- The current state of reimbursement models
- Adjustments that need to be considered
- Methods for reforming reimbursement models
- Practical alternatives for both outcome-based pricing and payment methods for all stakeholders in the value chain