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. 2017 Nov;23(11):10.18553/jmcp.2017.17342. doi: 10.18553/jmcp.2017.17342

TABLE 3.

Participant Recommendations for Aligning Contract Types that May Evolve into a VBC

Contract Types that May Evolve into a VBC
Risk Sharing Coverage with Evidence Generation Shared Accountability Model Bundled Service
Brief summary of contract requirements Manufacturer charges less for the cost of therapy for patients or populations with suboptimal results or missed health outcomes Manufacturer is financially liable or upside may be based on real-world evidence outcomes (e.g., from registries, active surveillance, claims) Incorporates services that support a patient throughout their care transitions that aim to optimize their outcomes Manufacturers offer additional patient services with the product
Key stakeholders Payers, manufacturers, integrated delivery networks, future payers, employers, patients (potentially in the future) Patients, advocacy groups, manufacturers, payers, health care providers Manufacturers, providers, payers Payers, manufacturers, specialty pharmacies
Key considerations Level of complexity: Variable
Appropriate for any therapeutic area Real-world evidence requirements
  1. Defined outcome (e.g., comparative, baseline and measurement, control group)

  2. Robust data (claims, EMR, labs)

  3. Readily available (engine-predictive analytics, dedicated personnel, shared service with athird party, academic, other)

Example: For patients with diabetes receiving a medication, payers would pay more for lower A1c results and less for higher A1c results
Level of complexity: High
Appropriate for medications/devices/diagnostics that are approved with limited evidence (e.g., following an accelerated drug approval process)
  1. Intermediate outcomes available but need long-term data

  2. Expanding indications

Treatment areas may include specialty, oncology (especially accelerated approvals with less evidence), orphan drugs, emerging treatments
Data generated may drive formulary placement and future management decisions
Example treatment area: Duchenne muscular dystrophy or comparison of biologics vs. biosimilars
Level of complexity: Undetermined
May be based on diagnosis, research and goals, tools/services/solutions
Nonbranded tools or services/solutions may be developed for the broader marketplace and incorporated into the contracts
Payers advance the service to the provider, and the provider drives patient outcomes and monitors
Adherence-based outcome as a measure
Example: Mobile health apps
Level of complexity: High
Not viable in current marketplace due to legal and regulatory complexities (e.g., best price implications). Instead, services should be provided as a separate contract. “Suite of contracts” can achieve same aim
Potentially narrows the eligible population
Example treatment area: Diabetes

A1c = hemoglobin A1c; EMR = electronic medical record; VBC = value-based contract.