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May 21, 2016

dave

This week, the FiercePharma website had a great article on pay-for-performance arrangements. Although these aren’t commonplace now, about 14% of U.S. payers have at least one pay-for-performance pricing arrangement, up from 10% in 2014, according to a new specialty reimbursement report from EMD Serono. Another 30% of plans say they’ll have an outcomes-based deal in place within 12 months.

Diabetes seems to be the ideal disease state for these type of agreements. The disease never goes away and it has to be the one disease that patient actions and lifestyle can have the biggest impact on, and with all our modern devices it is also probably one of the easiest to evaluate progress. It will be interesting to see how pharma and device companies come together to take advantage of these new contracts. Could you imagine if Lilly hooked up with Dexcom to develop better dosing algorithms that the patient didn’t have to think about, and what if this data was seamlessly streamed to Lilly and to the doctor, for immediate correction? Then you add in a Fitbit or a Shine or a Garmin and you can see where all this is headed, and how possibly patients may be held responsible for their own actions. That would be a novel concept.

Since we mentioned the term novel concept in the last paragraph, you may want to check out this week’s 3rd item and decide for yourself if electro-acupuncture is worthwhile.

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We can make a difference!

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Dave Joffe, Editor-in-chief