Harvard Business Review 10/06/2015
A New Way to Define Value in Drug Pricing
Value based pricing sounds great, but there's one big problem: it doesn't scale.
In a vacuum, a particular value-based model might work for a specific drug, but only if it focuses on isolated factors and ignores the long-term context of treatment, different types of treatment, and multiple (often subjective) aspects of value.
Dr. Peter Bach and colleagues at Memorial Sloan Kettering Cancer Center have developed an interactive drug-pricing tool — the DrugAbacus — that integrates objective information about cancer drugs while empowering users to define what value means to them. The tool’s intended users are policymakers who wish to explore the idea of finding fair prices for drugs while respecting the complexity and subjectivity of what “value” means.
Read the full article here.