John LaMattina , Contributor
As healthcare costs continue to rise, payers are seeking ways to get prices under control. One method gaining more and more favor when it comes to paying for new, expensive medicines is pay-for-performance – an arrangement where a payer agrees to allow access to a new drug with the proviso that it gets reimbursed for those patients for whom the drug was not effective.
Pay-for performance works well when you can directly measure the outcome. When a patient with hepatitis C is treated with Harvoni (Gilead), you expect to rid this virus in almost all of the patients within 12 weeks. That’s easy to measure and....
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