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Succeeding with value based contracts

Succeeding with value based contracts

Introduction

Get up-to-speed on value-based contracting before your competitors take the lead

Hailed by some as the answer to the drug cost crisis, value-based contracting (VBC) is currently dominating the agenda in pharma boardrooms across the US and Europe–and some early-adopters are reaping the rewards. The terminology might vary, but without question interest in this type of agreement is higher than ever. Why now? What lessons have been learned? What does VBC success look like? And most importantly, how can VBCs best be used to leverage commercial value?

This report provides detailed insight from 7 leading VBC experts–those planning and doing the deals–backed up by 10 contemporary case studies. The key issues identified and explored include:

  • Establishing suitability: A VBC may not suit all drugs or all markets–so how do you decide on the best prospects?
  • Too high expectations: Are you allowing enough time? Are you targeting the right drugs or stakeholders? What range of views and perceptions should you prepare for?
  • Is the right support in place? What operational challenges does pharma face when shifting to a VBC strategy and putting VBC into practice? How do you stop inadvertently falling foul of the law?
What to expect from this report

Everyone is talking about VBCs thanks to the convergence of three factors: stalemate on high drug costs; digitalisation around data collection and analysis; and a groundswell in political pressure. The landscape has evolved and VBCs have been propelled into the spotlight. This report brings you right up-to-speed on what's been done already, the new ideas being discussed, and the issues you'll have to overcome. If you are considering VBCs, you need to read this first.

This is 100% new qualitative research based on interviews with experts currently working on VBC strategy or implementation. Case studies using the latest information are also included.
  • We identified 15 core issues facing pharma companies involved in VBC
  • We explored these issues through 19 targeted questions put to 7 leading experts
  • Their responses yielded 93 unique new insights
  • Insights are supported by 150 directly quoted comments plus references to 130 sources
  • We collated 10 case studies to showcase the most recent examples of VBC success
Example insight included in Succeeding with value based contracts

Piloting may be a useful strategy to prove the concept can be workable in practice. In healthcare systems with multiple payers, it may prove to be faster to pilot with one payer and build from there than seek VBCs across all payers.

Example quote included in Succeeding with value based contracts

Blockchain will make data more transparent and real time and it will be shared amongst users, so something like that has been proposed to be used in a contract.Policy and Access Expert, US

The expert panel for Succeeding with value based contracts
  • Director, Medical Policy and Access Research at a top 10 pharma company
  • Disease Pathway Manager at a top 20 company
  • Executive Director, Account Management and Strategy at a top 10 pharma company
  • Head of Health Economics and Outcomes Research (HEOR) at a top 10 pharma company
  • Patient Health Impact and HEOR Director at a top 10 pharma company
  • Senior Vice President, Global Marketing & Strategy at a top 30 pharma company
  • Senior International Health Policy Leader at a top 10 pharma company
Value-based contracting isn't new, but it's certainly more important now than ever. VBC is coming of age, having proved to be the way forward for some drugs where traditional market access approaches have failed to deliver. And now that data management and digitalisation has taken hold, the timing for launching a VBC couldn't be better. This report provides the knowledge springboard you need to make real progress.

Why FirstWord reports are different
  • A fresh new perspective: We've sourced the latest views and collated the most up-to-date information to provide a level of insight not available elsewhere.
  • Expert opinions you can trust: We've engaged thought leaders in this area and brought you their views and ideas in an easy to read format.
  • Professional researchers: Our researchers have the knowledge, experience and contacts to ask the right questions and uncover the answers you need.


1. Subject synopsis
2. Research methodology and objectives
3.Key insights summary
4.Issues and insights
4.1. A shift from volume to value in healthcare
4.1.1.Issue summary
4.1.2.Questions
4.1.3.Key insights
4.1.4.Supporting quotes
4.1.5.Sources
4.2.The many names for VBC
4.2.1.Issue summary
4.2.2.Questions
4.2.3.Key insights
4.2.4.Supporting quotes
4.2.5.Sources
4.3.Multiple sources of value
4.3.1.Issue summary
4.3.2.Questions
4.3.3.Key insights
4.3.4.Supporting quotes
4.3.5.Sources
4.4.VBCs offer a win/win, in theory
4.4.1.Issue summary
4.4.2.Questions
4.4.3.Key insights
4.4.4.Supporting quotes
4.4.5.Sources
4.5.VBC has not been proven beyond a doubt
4.5.1.Issue summary
4.5.2.Questions
4.6.3.Key insights
4.5.4.Supporting quotes
4.5.5.Sources
4.6.Use of VBCs is expected to grow.
4.6.1.Issue summary
4.6.2.Questions
4.6.3.Key insights
4.6.4.Supporting quotes
4.6.5.Intelligence exhibits
4.6.6.Sources
4.7.Increasing opportunities to learn about VBC
4.7.1.Issue summary
4.7.2.Merck and Optum Learning Laboratory
4.7.3.UPMC Health Plan Center for Value-Based Purchasing for Pharmaceuticals
4.7.4.Questions
4.7.5.Key insights
4.7.6.Supporting quotes
4.7.7.Sources
4.8.Select the best prospects for VBC
4.8.1.Issue summary
4.8.2.Questions
4.8.3.Key insights
4.8.4.Supporting quotes
4.8.5.Sources
4.9.VBC takes time to set up
4.9.1.Issue summary
4.9.2.Questions
4.9.3.Key insights
4.9.4.Supporting quotes
4.9.5.Sources
4.10.There are operational challenges when using VBCs
4.10.1.Issue summary
4.10.2.Questions
4.10.3.Key insights
4.10.4.Supporting quotes
4.10.5.Sources
4.11.There are communications challenges when using VBCs
4.11.1.Issue summary
4.11.2.Questions
4.11.3.Key insights
4.11.4.Supporting quotes
4.11.5.Sources
4.12.There are legal challenges when using VBCs
4.12.1.Issue summary
4.12.2.Questions
4.12.3.Key insights
4.12.4.Supporting quotes
4.12.5.Sources
4.13.Payers may not perceive VBCs as helpful to achieving affordability
4.13.1.Issue summary
4.13.2.Questions
4.13.3.Key insights
4.13.4.Supporting quotes
4.13.5.Sources
4.14.Case studies in VBC offer lessons
4.14.1.Issue summary
4.15.VBCs differ, but a common framework could help build effective contracts
4.15.1.Issue summary
4.15.2.Questions
4.15.3.Key insights
4.15.4.Supporting quotes
4.15.5.Intelligence exhibits
4.15.6.Sources

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