Advances in foundational science, technology, and clinical knowledge are driving a revolution in patient care. At the same time, spending on these innovative drugs and devices has increased dramatically. The question is, what—if anything—should be done to regulate this innovation? To balance physician prescribing of state-of-the-art drugs and patient desires to access them with the fiscal realities of high treatment costs, many governments have turned to health technology assessment (HTA) bodies to identify “high value” treatments. The authors discuss the history of HTA in the US, the issues of conducting HTA in the US context, and the need for innovation in how value is measured and linked to reimbursement.
Peer-Reviewed Research 5/26/17Measuring the Value of Prescription Drugs
Escalating drug prices have alarmed physicians and the American public and led to calls for government price controls. Less visibly, they have also spawned a flurry of private-sector initiatives designed to help physicians, payers, and patients understand the value of new therapies and thus make better choices about their use. Programs recently introduced or advanced by nonprofit organizations, including leading medical professional societies, represent an important innovation in the United States, but they have also revealed numerous analytic and implementation challenges.READ MORE
Other 5/26/17Understanding Health Care's Short-Termism Problem
The meaning of "value" varies by each stakeholder and is thereore the least well understood. Drs. Chandra and Goldman discuss that the right way to think about value in health care delivery is a stream of benefits accrued over a lifetime that is attractive relative to the price paid to acquire them. Using examples with schizophrenia, hepatitis c, and kidney cancer, a value-based design would avoid a "one-size-fits-all" view of drug coverage. Regardless, the challenge is to figure out how to create and develop policies to reward long-term benefits.READ MORE