Unbiased Analysis of Today's Healthcare Issues
In the provider space, alternative payment models are increasingly common. These models aim to pay more money when providers improve quality and lower total cost and pay providers less when quality is suboptimal or total cost rise. Because there is significant uncertainty in quality of care and variability across providers, value-based purchasing is sensible in…
Drug prices are high. We should only be paying high prices for drugs that have a major impact on patient health and quality of life. Ergo, we should be paying for drugs with value-based agreements (VBAs), right? It turns out the answer is not so simple. A paper by Dubois, Westrich and Buelt (2020) argue…
Pharmaceuticals on the one hand can greatly improve patients health and quality of life. At the same time, some of these treatments are expensive and–despite clinical trial results–evidence from the real-world is lacking at the time of a drug launch. To address these issues, Oklahoma’s Medicaid program is taking the lead by adopting two different…
“Value” is the latest trend in health care. However, how does value get integrated into reimbursement? One approach to tying value to prices is through and outcomes based contract (OBC) where the reimbursement for a drug will depend on the real world outcomes experienced by the relevant patient population. A study by Nazareth et al.…