IVI is applying scientific principles to the study of value in medicine to achieve a common framework.
Viewpoint 4/14/17In Health Affairs: Balancing the Use of Cost-Effectiveness Analysis in Healthcare Innovations
IVI’s research focuses on four core areas, all tailored to achieve the following objectives:
- Advance methodologies for measuring value
- Improve healthcare pricing
- Identify high-value treatments
- Reform healthcare policy
IVI research develops, tests, and evaluates new strategies for bringing value to patients and the broader healthcare system. It also emphasizes multi-stakeholder partnerships among providers, payers, and manufacturers to ensure that prices reflect value and that patients receive effective care.
Organizations such as the American College of Cardiology/American Heart Association, American Society of Clinical Oncology, Institute for Clinical and Economic Review, Memorial Sloan Kettering Cancer Center, and National Comprehensive Cancer Network have developed frameworks to measure treatment “value.” As efforts to systematically measure value, these frameworks are a step in the right direction—but they also have significant limitations.
To accurately and completely measure value, rigorous new methods are needed that capture hard-to-measure costs and benefits and incorporate the perspectives of multiple stakeholders. IVI supports research that develops state-of-the-art methods for measuring the value of new medical technologies.
IVI also supports initiatives that educate and advise practitioners, healthcare system stakeholders, and policymakers about these methods to ensure they become a part of standard practice. As part of this effort, IVI evaluates value frameworks developed by other organizations, identifying where they are useful and where their methods can be made more rigorous. IVI also supports initiatives to provide useful information to patients, providers, and payers and believes value frameworks should seek to inform key stakeholders and market participants, not to legislate market prices.
From accountable care organizations to bundled payments, from value-based pricing to indication-specific pricing, reimbursement for healthcare is rapidly changing. As methods for measuring and assessing value of health technologies improves, innovative strategies for pricing and reimbursement will be needed to link price to value in different contexts.
IVI research focuses on both existing and cutting-edge pricing strategies. It evaluates how various reimbursement and pricing strategies affect key stakeholders’ bottom lines, how they impact the well-being of today’s patients, and whether they preserve incentives to create effective innovations for tomorrow’s patients.
Developing policy proposals and state-of-the-art methods for measuring value is only part of the puzzle. Any recommendation must not only improve the US healthcare system in theory, but must work in practice.
To test and refine new methods, IVI conducts state-of-the-science technology assessments using the latest guidelines from experts in the field. These assessments are designed to provide scientifically credible, objective, and timely review of emerging technologies using advanced methods, representing multiple perspectives, to identify key areas of uncertainty and opportunities for value-based pricing. They may also serve as tools to help patients, physicians, and payers identify the best treatment for each patient based on all available evidence.
Frequently, public policy discussion focuses on the symptoms instead of the underlying issues. To improve outcomes for patients and the health of our healthcare system, it is essential that policy debates take the “long view” and not shy away from complexity. IVI’s research adds balanced and objective insights to policy debate.
IVI conducts and disseminates policy analysis to educate the public and policy makers about the short- and long-term consequences of policies affecting pricing, access, and innovation, and examines costs and benefits of potential policy reforms that can better ensure value-based pricing in US healthcare markets.