Bringing together outcomes and value

In general terms, outcomes and value are two different things — the same outcome
will have a different value to each customer. If the outcome of your product is to cure 
a specific illness and the efficacy proves positive, that patient perceives your product provides them value. This distinction between an outcome they expect to receive is 
critical when quantifying your product’s value. A challenge Life Sciences manufacturers face are the complexities in attempting to monetize the value of a drug.

With these pricing and contract complications come complexities in your methodologies that impact pricing methods and contracts. The need to calculate and pass through rebates that were once simply tied to volume are suddenly more complex. Outcome- 
or value-based contracts you develop require a great deal of data and analytics.   

An increase in such reimbursement scenarios would benefit the entire healthcare system and more clearly align all the players with patient outcomes. Manufacturers would require a greater stake in the outcomes to justify the high costs for products. Providers would benefit with higher patient success rates, and payers would get patients back to a healthy state, while reducing costly hospital stays or readmissions.