CHESTERFIELD, Mo.--(BUSINESS WIRE)--D2 Consulting, a leading healthcare consulting firm providing strategic leadership and tactical market implementation for life science, biotech and medical device manufacturers, cites the importance of value-based contracting for healthcare technologies to gain better coverage with health plans and pharmacy benefit managers (PBMs). The transition away from traditional contracting structures toward value-based payment models impacts the way manufacturers need to approach pricing, contracting and patient support services.
“Aligning reimbursement around value instead of volume is the key to affordability and sustainability in today’s marketplace,” says Dean Erhardt, president and CEO, D2 Consulting. “Payers and PBMs are seeking quantifiable and widely accepted outcomes metrics from manufacturers as they negotiate new pricing models and value-based contracts. In addition, as new products emerge driven by technology and e-health, payers will need to have different economic models on how to define outcomes and measure success.”
With potential regulatory changes related to drug prices and rebates supported by both sides of Congress, manufacturers should be prepared to address such changes:
- New, emerging technologies without competitive threats should provide data and enable a “little educated risk” to achieve better payer coverage and long term growth with value-based contracts.
- To reduce risk, develop a deep understanding and insights on how payers are using analytics or reporting related to value based contracting.
- Understand how new payment models for payers and providers are impacting the way manufacturers need to approach pricing, contracting and patient support services.
- Identify realistic, actionable yearly data metrics or supplemental data captured by technologies in contracting arrangements.
- Analyze, differentiate a new business model to get a seat at the table and successfully interact with a payer’s expectations for value-based arrangements.
- Be prepared to discuss “overpriced specialty drugs” and value-based contracting coverage.
- Align incentives between manufacturers and payers to best drive appropriate patient outcomes.
About D2 Consulting
A leading provider of commercialization services to the healthcare and life sciences industries, D2 works across all stakeholders including manufacturers, payers and channel participants to execute strategic business initiatives that ensure successful launch, distribution and reimbursement to maximize market impact and support an ongoing leadership position in the marketplace. Visit http://d2rx.com/wp-content/uploads/2018/06/D2_CorpBrochGen2Dig_F058.pdf
