For the past several years, the pharmaceutical industry has focused on exploring and establishing value-based contracts (VBCs) between manufacturers and their customers. In these arrangements, payments are predicated upon measurements of patient welfare, rather than formulary access, purchase volumes or market share. Yet, despite the appeal of these arrangements, many manufacturers have been reticent to adopt them, given the myriad operational challenges they pose. However, by proactively assessing their proposed contracting strategies, systematic readiness, and any downstream implications, manufacturers can mitigate potential risks while confirming and creating the operational capabilities necessary for success.
In this article, Robert Blank shares best practices for navigating the operational and regulatory complexities of value-based contract strategies to mitigate potential risks and create operational capabilities to ensure success.
Robert Blank is a managing consultant at EVERSANA, working extensively in revenue management software solutions for the pharmaceutical and medical device industries. His expertise includes Medicaid and Managed Care rebates, chargebacks, and membership management.…