The Value Misperception
By: Dean Summerfield, DPhil | April 11, 2014
The healthcare industry today has a problem when it comes to value. Not only do they not agree with each other about how to define the value of treatment options – they are surprisingly wrong about how their peers define value for themselves. Clearly the best definition of value in healthcare would be whether something delivers a better health outcome. But when it comes to how individual stakeholders define value for themselves, the definition gets complicated.
In a recent Quintiles survey, we gave stakeholders seven definitions of value, and asked them which ones they thought were most important to other stakeholders. And in almost every case, they were wrong.
Biopharma puts ‘addressing unmet medical need’ and ‘being more efficacious than current options’ at the top of their own list of value statements, yet other stakeholders are convinced that what they really care about is how to address the widest number of patients possible. And while payers say they care most about “improved clinical efficacy,” other stakeholders believe they are really just looking for cost reduction and ways to address patients at lower total cost.
This disconnect between what stakeholder groups value, and what other groups assume they value, has fostered an atmosphere of distrust and blunts their ability to effectively communicate, which will only add unnecessary complexity and dissonance to the value conversation.
When a biopharma company presents its case for adoption of a new product, they may emphasize the benefits to the patients, and how that product is going to deliver better health outcomes over the current options -- but all the payers will hear is that they want to get that product available to as many patients as possible. And later in the decision-making process, payers may assert that they’re looking for improved clinical efficacy, but biopharma executives will likely mistrust that statement, assuming what they really want is a lower cost option.
It’s time to get past the discord.
We need to have earlier dialogues, and greater transparency about the processes and the data that’s being presented. Payers and providers need to be clear and honest about what drives their decision-making and the evidence they require to make those choices, and biopharma must be more transparent around the range of options and the data that they’re showing.
If we can get past the trust issues, and start being truthful and transparent about the choices we make, the process will get easier, drugs will get to market faster, and everyone from biopharma down to patients will benefit.
You can learn more about Quintiles research into the value proposition by downloading Value is the Target.