As healthcare costs continue to rise, there is an increasing need for utilization management to curtail the use of high cost drug products to those patients who stand to gain the most. One-time therapies with a high upfront cost further exacerbate this need, calling for a dedicated solution.
August’s outcomes-based financial solutions (OBFS) help to absorb these costs, while also providing a level of accountability.
Enabling the Innovation Cycle
By better and better understanding of the underlying mechanism of disease, rapid advancements in technology, and a streamlined regulatory process, novel transformative therapies are reaching patients at an unprecedented pace. In order to fuel this cycle, biopharma need to be able to reinvest in their pipelines. This requires a reward for bringing a successful innovation to market. There is thus a need to more effectively incur cost, as not to stifle innovation and limit future patient benefit.
Address Value Uncertainty
The systemic move from fee-for-service to value-based care is driving the need for value assessment. Independent value-assessments, for example by the Institute of Comparative Effectiveness Research (ICER), are insightful. However, these assessments would benefit from continued iteration as more information becomes available from real-world use of the evaluated product. This helps to address the typical concerns around the generalization and the durability of the treatment effect. Further understanding of actual value delivered will help to better align cost and value.
August helps to address the above two needs in the following way;
1. Given that any outcomes-based payment schedule is transferred away from the BioPharma companies, the resulting revenue can flow back into the innovation cycle faster, and ensure that more therapies can be advanced, and ultimately more patients can be served.
2. The outcomes data collected can be used to address areas of uncertainty in previous value assessment and thereby provide health insurers and other payers with more accurate information to inform their decision-making.
The outcomes-based financial solutions (OBFS) offered by August helps to ensure continued incentives for new product development, while in parallel providing a more informed feedback loop for accountability on the basis of real-world value.