Memorial Sloan Kettering Cancer Center has developed an interactive calculator that measures how we might integrate values and outcomes into how we price drugs. What would industry be able to charge if the outcomes were linked to adverse events like side effects or extra life benefits? Look at the DrugAbacus graphic below. I would prefer a population metric such as mortality rates--discussed here, but I like how the model encourages consideration of the metrics that influence cost in cancer care.
‘Currently cancer drug prices aren't linked to the benefit they provide. They’re currently priced on what the market can bear, which is an unsustainable system.’
The interactive chart allows you to select the modifiable price components such as mechanism of action (novelty multiplier), toxicity, dollar per year, population burden of disease (blocked by pop-up). The grey bubble is the price of the drug at launch. If the DrugAbacus calculation predicts a lower price than the launch price the bubble is red or green if the cost is calculated above the launch price.
Value might cover quite a few ideas
Be curious. Ask the questions...
Thoughtful discussions about content development and outcomes analytics that apply the principles and frameworks of health policy and economics to persistent and perplexing health and health care problems
Bonny is a data enthusiast applying curated analysis and visualization to persistent tensions between health policy, economics, and clinical research in oncology.