Principal-agent theory-based cost and reimbursement structures of isavuconazole treatment in German hospitals
Florian Kron1,2,3,4, Sebastian M Wingen-Heimann1,2,3, Julia Jeck3
1FOM University of Applied Sciences, Cologne, Germany.
Background:
Isavuconazole (ISA) is a frequently used antifungal agent for the treatment of invasive fungal diseases (IFDs). However, hospital reimbursement data for ISA is limited.
Objectives:
The primary objective of this study was to analyse the different perspectives of relevant stakeholders and the (dis)incentives for the administration of ISA in Germany. To that aim, the health economic effects of using ISA from a hospital management perspective were analysed.
Patients/Methods:
Based on principal-agent theory (PAT), the perspectives of (a) the patient (principal) as well as (b) physicians, (c) pharmacists and iv. hospital managers (all agents) were analysed. For the evaluation of the cost-containment and reimbursement strategies of ISA, the German diagnosis-related group (G-DRG) system was used.
Results:
Hospitals individually negotiating additional payments for innovative treatment procedures (zusatzentgelte [ZE]) within the G-DRG system is a key element of hospital management for the reduction of total healthcare expenditure. Our analysis demonstrated the beneficial role of ISA in healthcare resource utilisation, primarily due to a shortened overall length of hospital stay. Depending on underlying disease, coded G-DRG and ISA formulation, large differences in total reimbursement and the amount of ZE was shown. The PAT demonstrated disincentives for hospital managers to use innovative drugs.
Conclusions:
Based on the PAT, beneficial, detrimental and indifferent perspectives of different stakeholders regarding the usage of ISA were shown. A reduction of bureaucratic hurdles is needed in Germany for the extension of effective and innovative antifungal treatment strategies with ISA.
Insights
Isavuconazole (ISA) offers benefits in treating invasive fungal diseases (IFDs) by shortening hospital stays. However, principal-agent theory reveals disincentives for hospital managers, necessitating reduced bureaucracy for wider ISA use in Germany.
Area of Science:
- Pharmacoeconomics
- Health Services Research
- Antifungal Therapy
Background:
- Isavuconazole (ISA) is a key antifungal for invasive fungal diseases (IFDs).
- Limited hospital reimbursement data exists for ISA.
- Understanding stakeholder perspectives is crucial for ISA administration.
Purpose of the Study:
- Analyze stakeholder perspectives on Isavuconazole (ISA) administration in Germany.
- Identify incentives and disincentives for ISA use from a hospital management viewpoint.
- Evaluate the health economic effects of ISA within the German healthcare system.
Main Methods:
- Applied principal-agent theory (PAT) to analyze patient, physician, pharmacist, and hospital manager perspectives.
- Utilized the German diagnosis-related group (G-DRG) system for evaluating reimbursement strategies.
- Assessed cost-containment and resource utilization associated with ISA.
Main Results:
- ISA use is linked to shorter hospital stays, improving healthcare resource utilization.
- Negotiating additional payments (zusatzentgelte) is a key hospital management strategy.
- Principal-agent theory identified disincentives for hospital managers regarding innovative drug adoption.
- Reimbursement and additional payments for ISA varied significantly based on disease, G-DRG, and formulation.
Conclusions:
- Stakeholder perspectives on ISA usage are mixed, with beneficial, detrimental, and indifferent viewpoints identified.
- Reducing bureaucratic hurdles is essential for expanding the use of innovative antifungals like ISA.
- Streamlining processes can facilitate effective antifungal treatment strategies in Germany.
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