Helping hospitals and a top-tier pharma company establish innovative medicines pricing to improve patient outcomes and reward value instead of volume

About the collaboration
LOGEX developed an innovative medicine pricing model to align hospital and pharma contracting and move from volume-based to outcomes-based contracts. This helps hospitals to design and monitor the agreement between hospitals and pharma companies while improving the quality of care as a whole.
The challenge
As healthcare and medicine costs are rising, hospitals are looking for innovative ways to contract novel medicines for improved patient outcomes. Instead of the traditional volume-based medicine contracting, whereby the value of medicine is not aligned to its price, our client, a global pharmaceutical company, wanted to develop an outcomes-based medicine pricing model for Dutch hospitals, with varying discounted rates based on the health outcomes.
To develop such a pricing model, and eventually to implement this, systemic and rolling patient outcome data was needed.
However, given the lack of system-wide and comparative real-world outcomes data (RWD), our customer found itself challenged in their objective to arrive at sustainable and affordable medicine pricing.
We wanted to implement an innovative pricing model based on health outcomes that the medicine delivers, rather than on price-per-unit of medicine.
The solution
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 analysed the medicines usage, such as treatment durability when measured by time-to-treatment failure and patient-specific outcomes generated.
This way, analytics on medicines value defined different outcome-based patient categories and candidate pricing models. Pricing scenarios were analysed with both stakeholders along with insights into how well the medicine works for different patient groups.
- Naïve Starters
- Switchers
- Long Runners
In the resultant model, medicines 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.

Innovative Contracting for medicines
LOGEX Innovative Contracting solution helps you monitor and benchmark your current medicine contracts and reshape them to reward value instead of volume.
LOGEX is a trusted third-party data processor for European hospitals.
Our Innovative Contracting solution enables you to:

Monitor relevant metrics at patient cohort sub-groups
Including starters, stoppers (Kaplan Meier), switchers, treatment duration with patient case-mix filters

Set up and monitor managed entry, accelerated access schemes their monitoring
Follow-up on your contracts by monitoring KPIs and alignment with set goals (e.g., value at risk)

Assess medicine value
Evaluate achieved outcomes and compare them with costs

Kickstart your project with short timelines
Build up trust and transparency starting with a simple approach and enrich the model with advanced KPIs over time

Respond to new regulatory pressures around data-driven evidence on drug efficacy
Through the dashboard of our user-friendly tool

Get assistance in contract design
Consultation on the selection of the appropriate model with relative risks and benefits, with an option for shadow contracting
With LOGEX’s Innovative Contracting solution, stakeholders move from ‘pricing per unit’ to pricing based on outcomes of the medicine.
LOGEX develops various innovative pricing models, based on real-world insights into such as conditional treatment continuation, price/volume agreements, pay for performance, and activity-based for cost-effective access.
Our aim is to improve patient access to innovative therapeutics and diagnostics, leading to improved health outcomes and experiences for patients.