10.26.2011

Pay for performance contracts for Avastin in Germany






Dear All,

Roche has offered performance based contracts to German hospitals whereby money is paid back when the drug does not work. It appears that the details are not in the public domain. A recent article in the Sueddeutsche Zeitung comments on that news and describes how several stakeholders perceive that strategy as quite problematic as in their view it may set the wrong incentives for hospitals due the potential risk of suboptimal treatment. At the same time the legal basis is questioned as the treatment is paid by the sickness funds and therefore funds shouldn't be given to the hospitals, argue several health insurance representatives. This for sure is a bold move from Roche in order to stop product from loosing ground, but at the same time is not the first pay for performance scheme in Germany. It will be interesting to see how that case unfolds.

best
Ulf

4 comments:

yugender said...

its really great job i like it

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Fernando Dorado said...

Very interesting. Do you think the pharmaceutical industry will change their relationship with stakeholders from a service offerer to a total partnership with administration?

Health Economics Digest said...

@Fernando
It seems that way. The EFPIA, the EGA and EuropaBio recently published a joint paper asking for a ‘robust and transparent framework’ for health technology assessment. It reiterated the need for partnership throughout stating many reasons and elements to reinforce it.

Duncan Dibble

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