Related Experiment Video
Updated: Oct 11, 2025
07:13
Digital Home-Monitoring of Patients after Kidney Transplantation: The MACCS Platform
Published on: April 12, 2021
4.5K
A quantitative analysis of risk-sharing agreements with patient support programs for improving medication adherence
Hui Zhang1, Tao Huang2, Tao Yan3
1Faculty of Business Administration, Lakehead University, Thunder Bay, Ontario, Canada. hzhang2@lakeheadu.ca.
Health Care Management Science
|November 30, 2021
Summary
Value-based agreements can improve medication adherence, but optimal pricing and program effectiveness depend on negotiation power and contract details. Balanced power can yield varied adherence outcomes.
Area of Science:
- Health economics
- Game theory
- Pharmaceutical policy
Background:
- Medication adherence presents challenges for patients, pharmaceutical companies (drugmakers), and healthcare payers.
- Value-based risk-sharing agreements, where drugmakers offer price reductions for improved adherence, are increasingly adopted by payers.
- These agreements involve payers implementing patient support programs in exchange for drugmaker contributions and preferential drug tiering.
Purpose of the Study:
- To investigate optimal program effects and pricing strategies within value-based agreements using game theory.
- To analyze how negotiation power between payers and drugmakers influences pricing and adherence outcomes.
- To examine the impact of different pricing settings (payer-led, drugmaker-led, simultaneous, sequential) on adherence.
Main Methods:
- A game-theoretic model was employed to simulate the interactions between payers and drugmakers.
- The study analyzed optimal pricing and program effectiveness under various negotiation power scenarios.
- Proportion of Days Covered (PDC) was used as the primary metric for measuring medication adherence.
Main Results:
- While discounts for adherence can incentivize it, guaranteed improvement is not assured.
- Strong drugmaker negotiation power can align with social welfare, but payer power may lead to greater adherence improvements.
- Balanced negotiation power's impact on adherence varies significantly based on contract specifics and decision order.
- Drugmaker cost-sharing does not always translate to increased program efforts, with optimal levels depending on pricing structures.
Conclusions:
- The effectiveness of value-based agreements is contingent upon the balance of negotiation power and contractual frameworks.
- Payers may possess a first-mover advantage in pricing when adherence is not yet improved, unlike drugmakers.
- Policymakers should consider diverse cost-sharing strategies tailored to different pricing settings to optimize outcomes.
Keywords:
Cost-effectivenessGame-theoryMedication adherencePatient support programsPatient-centricValue-based risk-sharingMore Related Videos
Related Concept Videos
01:23Types of Biopharmaceutical Studies: Controlled and Non-Controlled Approaches
197
Biopharmaceutical studies constitute a vital field aiming to enhance drug delivery methods and refine therapeutic approaches, drawing upon diverse interdisciplinary knowledge. In research methodologies, the choice between controlled and non-controlled studies significantly influences the study's reliability and accuracy.
Non-controlled studies, commonly employed for initial exploration, lack a control group, rendering them susceptible to biases and external influences. In contrast,...
Non-controlled studies, commonly employed for initial exploration, lack a control group, rendering them susceptible to biases and external influences. In contrast,...
197
01:28Drug Therapy
116
The advent of drug therapy has profoundly shaped modern mental health care, providing targeted treatments for a range of psychological disorders. Psychotherapeutic drugs, classified into antianxiety, antidepressant, and antipsychotic medications, address symptoms across anxiety disorders, mood disorders, and schizophrenia. While these medications have transformed patient outcomes, they require careful management due to their potential side effects and limitations.
Antianxiety Medications
Antianxiety Medications
116
01:01Dosage Regimens: Partial Pharmacokinetic Parameters
17
It is not uncommon for complete drug pharmacokinetic profiles to remain elusive in pharmacokinetics. This necessitates certain educated assumptions by pharmacokineticists to determine appropriate dosage regimens without comprehensive pharmacokinetic data from animal or human studies. One prevalent assumption is setting the bioavailability factor, denoted as F, to 1 or 100%. This assumption caters to the scenario where a drug doesn't achieve full systemic absorption, resulting in the patient...
17
01:12Analysis of Population Pharmacokinetic Data
425
Analysis of population pharmacokinetic data involves studying the behavior of drugs within diverse populations to understand their pharmacokinetic parameters. Traditional pharmacokinetic methods typically involve collecting samples from a few individuals and estimating these parameters. While these methods are commonly used, they have limitations in capturing the variability in drug response among individuals or heterogeneous populations. Population pharmacokinetics is employed to address these...
425
01:15Methods of Documentation VI: Case Management Model
654
The case management model is a multidisciplinary approach that involves healthcare professionals from diverse disciplines, such as physicians, nurses, therapists, social workers, and pharmacists, working collaboratively to address the various needs of patients. Each healthcare professional brings unique expertise and perspectives, contributing to a more comprehensive understanding of the patient's condition and tailoring treatment plans accordingly.
For example, a patient with a chronic...
For example, a patient with a chronic...
654
01:15Drug Dosing: Geriatric Patients
23
Elderly individuals encompass a diverse population with varying degrees of age-related physiological changes. Defining the elderly presents challenges, as the geriatric population is often arbitrarily categorized as individuals older than 65. However, many individuals in this group lead active and healthy lives, with an increasing number surpassing 85 years and falling into the older elderly category. Physiological changes associated with aging impact performance capacity and homeostatic...
23