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When Do Value-Based Contracts Add Value? Insights...
Journal article

When Do Value-Based Contracts Add Value? Insights From Probabilistic Simulations

Abstract

OBJECTIVES: Value-based contracts, also called outcomes-based agreements, tie reimbursement to treatment performance, usually operationalized as 1 or more patient outcomes within a given time frame. These agreements offer an appealing risk-sharing mechanism between manufacturers and payers. Despite this, uptake of value-based contracts has been limited likely, in part, because of contract complexity. This study explores how probabilistic …

Authors

Metcalfe RK; Geary K; Trusheim M; Barlow JF; Vuong Q; Park JJH

Journal

Value in Health, Vol. 28, No. 6, pp. 839–843

Publisher

Elsevier

Publication Date

6 2025

DOI

10.1016/j.jval.2025.02.015

ISSN

1098-3015