What’s Happening?

Working Through The “Gnarly” Details – Value Based Contracting with Manufacturers

Facing Your Company’s Sunshine Reporting, Best Price & Anti-Kickback Concerns Head On


Request a Download Link for Our 2017 “Working Through The Details” VBC  White Paper

Few would argue that “Value Based” deals between U.S. health manufacturers (device and pharmaceuticals, alike) are going to be a flash in the pan.  The transformative changes underway for the past eight years in terms of drug and device underwriting and health care cost-management trends in our  fragmented system have made these an imperative.

That said, there are a number of uncertainties regarding regulatory safe harbors that have not yet been framed for those of us supporting the manufacturer, payer, or provider client.

It is possible to make progress, however, by fostering efficient work processes, good documentation, and clear communications with CMS and contract partners.

Request a copy of our latest white paper today using the link above!   Better yet, reach out to participate in a pilot project or develop a value statement today!


Are Big Rx Price Increases Actually Going Extinct?

–Terri Bernacchi, PharmD  purplefeathersidetransparent
Most headlines these days (targeted at the Consumer) lament the egregious price hikes that some generic companies are taking that are passed along to the payer and the patient.  The stories cite the opportunistic, usurious price hikes taken on “old” products.  There is little mentioned in these stories of the problems with Medicaid/ Best Prices and some of the generic purchasing patterns that have fostered this environment.     (For example:  See the link:      http://time.com/money/4551222/generic-drugs-more-expensive-than-brand-name/)  Then, when looking at the Trade Journals, you get a different picture when looking at Brand product price increases.  

dreamstime_xs_7090166 For example, in a FiercePharma article entitled, “Branded drug prices softening big time, distributors warn” by Eric Palmer on Oct 31, 2016, the author notes that “…drug distributors McKesson ($MCK) and Cardinal Health ($CAH) are sounding a warning for the industry: price hikes are slowing, price hikes are slowing. As a result, so are their earnings.”   

For example, the article quotes Allergan’s CEO Brent Saunders reacting to the “growing hue and cry over prices with a promise to cap drug price increases as part of a “social contract” with patients, explaining the move in a full-page ad in The New York Times.”  

He notes that “McKesson’s Hammergren said that it is too early to speculate about what will happen long-term or whether a change in administration in the White House will lead to ongoing pricing practices. Still, he said, the big price hikes of the near past look to be history.”

It might be that the US health care system that grown accustomed to highly available and cheap generics and higher cost brands taking double digit price increases every year is undergoing fundamental change from within.  Perhaps the “go to market” cost of branded products and “price protection” terms in rebate and pricing agreements are also tamping down price increases after a product’s market entry. 

(See the link to the article:   http://www.fiercepharma.com/manufacturing/branded-drug-prices-softening-big-time-distributors-warn)