Making Value-Based Contracting Stick

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Key Takeaways

Outcomes-based contracts offer different benefits for different stakeholders:

  • For biopharmaceutical companies, VBP arrangements can expand market access and improve a drug’s formulary position.
  • For payers, these agreements can lower costs and increase performance.
  • For providers, these arrangement reduce risk.
  • For patients, VBP agreements lead to less out-of-pocket expenses.

Increasing healthcare costs — the average US health system spends more than 55 percent of its total drug spend on only 3 percent of drug volume — have accelerated the need for outcomes research and are leading to increase utilization of value-based purchasing agreements.

Patient and clinician relevant, standardized outcomes will be the key metric in moving toward value-based care.

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