The psychology of
value-based pricing comes into play when potential participants can judge a difference among programs.
But the biggest problem with
value-based pricing isn't how to make the calculations--it's how to explain them to clients.
Value-based pricing makes multi-domain MDM financially feasible
The lab will play a key role not only in gathering and providing relevant data on comparative effectiveness, but also in using it to help develop
value-based pricing based on cost and outcomes.
The consultant's recommendations included two alternative pricing strategies to address this issue: product-cost unbundling and
value-based pricing.
Figure 1 illustrates valuable insights derived from a
value-based pricing experiment with private payers in the United States.
Traditionally,
value-based pricing means building in-field maintenance and servicing into a price.
Step 3: Supporting your
value-based pricing approach with customized optimization models.
It recommended replacing the current PPRS, where companies can set the initial prices of drugs under a maximum level of profits, with a "patient-focused
value-based pricing scheme".
Western European nations also use many different methods to mitigate increases in pharmaceutical expenditures, including reference pricing, parallel trade, profit controls, and
value-based pricing.
The study recommends that the current pricing scheme, in which companies are free to set their own prices within very broad profit constraints, is replaced with a "patient-focused
value-based pricing scheme" in which the prices the NHS pays reflect the benefits they bring to patients.
Lesser trends identified were
value-based pricing and price competition and greater use of the Internet, remote monitoring and scheduling.
