Value-based arrangements may be more prevalent than assumed

• Published in: The American journal of managed care Vol. 25; no. 2; pp. 70 - 76
• Main Authors: Mahendraratnam, Nirosha, Sorenson, Corinna, Richardson, Elizabeth, Daniel, Gregory W, Buelt, Lisabeth, Westrich, Kimberly, Qian, Jingyuan, Campbell, Hilary, McClellan, Mark, Dubois, Robert W
• Format: Journal Article
• Language: English
• Published: United States MultiMedia Healthcare Inc 01.02.2019
• Subjects: Drug Industry - economics; Drug Industry - organization & administration; Drug Industry - statistics & numerical data; Health administration; Humans; Insurance, Health - economics; Insurance, Health - organization & administration; Insurance, Health - statistics & numerical data; Interviews as Topic; Payment systems; Pharmaceuticals; Polls & surveys; Qualitative research; Surveys and Questionnaires; United States; Value-Based Purchasing - statistics & numerical data; United States
• ISSN: 1088-0224

To better understand the prevalence of US value-based payment arrangements (VBAs), their characteristics, and the factors that facilitate their success or act as barriers to their implementation. Surveys were administered to a convenience sample of subject matter experts who were senior representatives from payer organizations and biopharmaceutical manufacturers. These data were supplemented with qualitative interviews in a subsample of survey respondents. Descriptive statistics, including percentages for categorical values and mean (SD) and median (interquartile range) for continuous variables, were assessed for quantitative questions. Trained reviewers collated responses to free-text survey questions and the qualitative interviews to identify themes. Of the 25 respondents, 1 manufacturer and 4 payers reported not having explored or negotiated any VBAs. Subsequently, questionnaire results from 11 biopharmaceutical manufacturers and 9 payers who had experience with VBAs were analyzed. More than 70% of VBAs implemented between 2014 and 2017 were not publicly disclosed. Furthermore, although consideration of VBAs as a coverage and payment tool is increasing, VBA implementation is relatively low, with manufacturers and payers reporting that approximately 33% and 60% of early dialogues translate into signed VBA contracts, respectively. Respondents' reasoning for VBA negotiation process breakdowns generally differed by sector and reflected each sector's respective priorities. This study reveals that the majority of VBAs are not publicly disclosed, which could underestimate their true prevalence and impact. Given the effort required to implement a VBA, future arrangements would likely benefit from a framework or other evaluative tool to help assess VBA pursuit desirability and guide the negotiation and implementation process.