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| Demonstrate Value |
"Demonstrate value" is a familiar request for anyone working in the life sciences industry. Historically new treatments have been evaluated in terms of how safe and efficacious they are compared to the standard of care. With the many changes in the healthcare industry, and expedited through healthcare reform efforts, there is a focus on enhancing patient outcomes and decreasing healthcare costs. The industry is struggling to provide adequate solutions.
A recent study by the management consulting firm Oliver Wyman surveyed 200 physicians in value-based delivery models such as accountable care organizations (ACOs). The goal of the study is to understand physician attitudes toward the role life sciences companies have in helping value-based healthcare providers deliver better care at a lower cost. The results found that…
- 61% of respondents said they agreed or strongly agreed that there is a role for branded drug therapies in reducing the overall cost of patient care when used appropriately
- Only 37% agreed or strongly agreed with the statement, “Pharmaceutical companies have the capabilities to reduce the total cost of care and improve patient outcomes.”
Telehealth solutions are customized based on the patient’s health condition to gather patient vital signs and health symptom interview data. This information can be used to demonstrate the value a treatment has on patient outcomes and in reducing healthcare costs. We recently published a white paper on telehealth solutions, and the benefits life science companies can expect from telehealth solutions.
Download the white paper
As a part of the Oliver Wyman study senior executives from ACOs were interviewed. There was a quote from a former CEO of a Medicare Advantage ACO and he said, “Drugs can cost more, but they have to prove real value to the patient in order for payers to agree to pay more.”
Now is the time to act—bold thinking and brave leadership is needed. The need to demonstrate value is not going to fade away, rather it will intensify. Additionally, there are many tools and solutions available to provide payers and healthcare providers with evidence that a treatment positively impacts patient outcomes and decreases healthcare costs.
