Definitions of Value

When we talk about value in the healthcare system, we have to think about all the related facets of value – the clinical, economic, humanistic, and social aspects. Each of these elements plays an important role in delivering a balanced value proposition for a treatment.

Definitions of ValueThe challenge however, is that different stakeholder groups measure and prioritize these aspects of value in different ways, putting greater weight on those attributes that drive the greatest benefit to them individually, rather the industry as a whole. 

According to the recent Quintiles survey on value, US and EU payers say the most important aspect of value is effectiveness -- how does a new agent compare to the standard of care? While providers are more focused on quality of life for their patients, and biopharma is most interested in whether a potential treatment addresses an unmet medical need. 

These results shouldn’t be surprising. It is normal for certain aspects of value to hold more consequence for different stakeholders. Biopharma will naturally be drawn to the unchartered territory of unmet need where they have greater opportunity to create ground-breaking innovations, while providers will more appropriately be focused on improving quality of life for the patients they serve. And payers are focused on economic value, because their primary responsibility is coverage and reimbursement.

No stakeholder is wrong, but if we all take a step back and focus on pursuing all facets of value jointly, every stakeholder will benefit. If we’re going to produce products that meet unmet medical need, we should naturally want them to be more effective than current treatments while improving quality of life for patients – all in the most cost effective manner possible. 

The industry now needs to focus on incorporating the triple aim into every decision making process. If we can figure out a way to achieve all three value propositions—improve quality, enhance population outcomes, and reduced healthcare system cost—we move the system in the right direction. 

You can learn more about our survey results by downloading the Value is the Target.

Topics in this blog post: Biopharma, Value, Triple Aim, Transparency, Payers, Market Access