Opportunities and Challenges With Value-Based Contracting

NPC President Dan Leonard

One component of the shift from volume to value in our health system is the practice of developing value-based contracts, under which biopharmaceutical manufacturers and payers agree to link coverage and reimbursement levels to a drug’s effectiveness and/or how frequently it is utilized.

In his latest commentary for the American Journal of Pharmacy Benefits, National Pharmaceutical Council President Dan Leonard explores the challenges and opportunities in implementing value-based contracts. Leonard notes that “[i]n the United States to date, value-based contracting activity has been limited. But the desire to ensure patient access to important treatments is driving interest in agreements among both payers and biopharmaceutical manufacturers, and our changing health care environment may generate more activity in this arena in the future. However, activity could remain limited unless we address several operational barriers, as well as regulatory and communications concerns.”

To learn about how we can tackle these barriers to implementing value-based contracts, read the full commentary on the American Journal of Pharmacy Benefits website.