TABLE 2.

Defining Value-Based Contracting

Definition

A value-based contract is a written contractual agreement in which the payment terms for medication(s) or other health care technologies are tied to agreed-upon clinical circumstances, patient outcomes, or measures

Guiding principles

The definition should be flexible to allow for innovative value-based contracting approaches that have yet to be developed There must be shared accountability for outcomes and costs Outcomes should be designed to engage patients and improve their health outcomes The definition should evolve to align and engage all relevant parties to achieve optimal outcomes The definition does not include contracts that are based on volume or share Terms and outcomes included in the contract are predetermined