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How to establish innovative medicines pricing to improve patient outcomes and reward value instead of volume

LOGEX developed an innovative medicine pricing model to align hospital and pharma contracting and move from volume-based to outcomes-based contracts. This solution helps hospitals design and monitor the agreement between hospitals and pharma companies while improving the quality of care. 

As healthcare and medicine costs are rising, hospitals are looking for innovative ways to contract novel medicines for improved patient outcomes. Our client, a global pharmaceutical company, wanted to develop an outcomes-based medicine pricing model for Dutch hospitals instead of traditional volume-based medicine contracting.

To develop such a pricing model and eventually to implement this we needed rolling patient outcome data.

However, given the lack of system-wide and comparative real-world outcomes data (RWD), our client found himself challenged in their objective to arrive at sustainable and affordable medicine pricing.

LOGEX is a trusted third-party data processor for European hospitals and provides secure, GDPR & HIPAA compliant insights into real-world data (RWD) on the use of medicines, patient outcomes, and medicine pricing. In this project, we analyzed the medicine usage, such as treatment durability, measured by time-to-treatment failure and generated patient-specific outcomes.

This way, analytics on medicines value defined different outcome-based patient categories and candidate pricing models. We analysed pricing scenarios with both stakeholders and insights into how well the drug works for different patient groups:

  1. Naïve Starters
  2. Switchers
  3. Long Runners

In the resultant model, medicine rates were discounted by their outcomes and applied to patient categories so that current medicine contracts are aligned to reward patient value instead of medicine volume.

With LOGEX’s Innovative Contracting solution, stakeholders move from ‘pricing per unit’ to pricing based on the outcomes of the medicine.

LOGEX develops various innovative pricing models based on real-world insights into factors such as conditional treatment continuation, price/volume agreements, pay-for-performance, and activity-based for cost-effective access.

We aim to improve patient access to innovative therapeutics and diagnostics, leading to improved health outcomes and experiences for patients.  

Would you like to know more about how LOGEX can help you establish innovative medicines pricing?

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