Out of the $3 trillion spent on healthcare services using the pay-for-service healthcare model, around a third of this amount was eventually wasted. However, experts in the medical industry predict that with the shift to the value-based healthcare model, there will be a golden opportunity in the coming year(s) to gain better patient outcomes as well as less wasted budget.
Aside from the enormous amount of wasted healthcare budget, there are other problems in the healthcare industry that the value-based system aims to solve. Some of these are the unmet health needs of Americans as well as the improvement of patient outcomes and experiences when it comes to healthcare. The system will also incentivize how treatments are administered and given, which will bring more worth to patient procedures. This will ultimately encourage physicians and other medical health professionals to earn based on the value of care given and not by the number of procedures done.
Advantages Of Value-Based Healthcare Agreements
Value-based healthcare provides a great opportunity for biopharmaceutical companies and payers to collaborate and come up with arrangements that will improve the overall patient experience and reduce the risk of wasting money on needed medical procedures. Here are a few advantages of having value-based agreements:
1 – It Will Address Uncertainty
The agreements between biopharmaceutical companies and payers will help eliminate or at least reduce the uncertainty of how medical procedures’ high costs will eventually translate into a patient’s healing. In fact, the shift of focus from simply administering treatment for a fee to looking into the outcome that the said medical procedure can give a patient will drastically reduce the number of uncertainty patients may feel.
2 – It Will Need New Products To Meet Patient Needs
Another benefit of value-based healthcare is that with this new model, the agreements have now set a challenge for biopharmaceutical companies. This will eventually push them to come up with new and innovative products and methods to deliver on the unmet clinical and societal needs that payers have. In the old fee-for-service model, these patient needs were not taken into account. However, since the new healthcare model’s focal point is now shifting toward value for money, payers will be able to have these needs met as well.
3 – It Will Build On Clinical Safety And Efficacy Trials But Assess Real-World Value Of Medications
Although clinical trials and tests are important, value-based agreements will now challenge how medications––those in development––will fare in a real-world setting. These agreements will assess how a cardio-vascular medication will be able to benefit patients who suffer from true-to-life heart ailments. Yet, it is no longer enough for medications to reduce the risk of heart failure. Value-based agreements will look into how these medications will act as a method to help patients reduce their overall medical expenses in comparison to their previous standard of care before taking the medication.
Conclusion
In the coming months and years, biopharmaceutical companies, payers, medical professionals, and health systems will band together to gain experience in agreements using the value-based model. As a result, more effective approaches are expected to be developed to provide better medical procedures and medications that will ensure higher patient outcomes and less healthcare spending.
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