Performance-based risk sharing arrangements for prescription medicines and other treatments are attractive to payers because they promise to base what is paid for a treatment on whether/how well it actually works. Programmes typically include data collection and either implicitly or explicitly link pricing, reimbursement and/or revenue to what the data show.

Performance-based risk sharing arrangements for prescription medicines and other treatments are attractive to payers because they promise to base what is paid for a treatment on whether/how well it actually works. Programmes typically include data collection and either implicitly or explicitly link pricing, reimbursement and/or revenue to what the data show.

At the mid-year symposium of the International Society of Pharmacoepidemiology (ISPE), OHE’s Adrian Towse reviewed the challenges such approaches present and experience to date. Adrian and Lou Garrison (University of Washington) co-chair the current ISPOR Performance-Based Risk-Sharing Arrangements Good Practices Task Force which will publish its report in Value in Health this summer. They will be presenting a half-day short course on risk-sharing/performance-based arrangements for drugs and other medical products at the ISPOR annual meeting in May 2013.

Examples of other OHE research on this topic

Puig-Peiró, R., Mestre-Ferrandiz, J., Sussex, J. and Towse, A. (2011) Literature review on Patient Access Schemes, flexible pricing schemes and risk sharing agreements for medicines. Poster presented at the PPRI Conference 2011. Vienna. 29-30 September.

Towse, A. and Garrison, L.P. (2010) Can’t get no satisfaction? Will pay for performance help? Toward an economic framework for understanding performance-based risk-sharing agreements for innovative medical products. Pharmacoeconomics. 28(2), 93-102.

Towse, A., Garrison, L. and Puig-Peiró, R. (2012) The use of pay-for-performance for drugs: Can it improve incentives for innovation? Occasional Paper. 12/01. London: Office of Health Economics.