The University of Southampton
University of Southampton Institutional Repository

Value based pricing: can it work?

Value based pricing: can it work?
Value based pricing: can it work?
The idea of paying for “value” in healthcare was boosted by Harvard business strategist Michael Porter, who argued that healthcare should focus on value for patients, defined as “health outcome per dollar of cost expended.”1 Competition in the US healthcare system, he argued, had failed because it did not focus on value. Although aimed at the US system, his terminology was widely adopted. In the United Kingdom, new NHS policies were presented in value terms. Paying hospitals by activity was termed “payment by results,” and the system for paying family doctors for specified activities was titled Quality Outcomes Framework. Value based pricing for branded drugs, which will come into force in 2014, is part of this trend. Although the system was intended to improve access to new drugs, the decision to include wider societal costs in the assessment of value could have unintended consequences.

0959-8138
Raftery, James
27c2661d-6c4f-448a-bf36-9a89ec72bd6b
Raftery, James
27c2661d-6c4f-448a-bf36-9a89ec72bd6b

Raftery, James (2013) Value based pricing: can it work? British Medical Journal, 347 (f5941). (doi:10.1136/bmj.f5941).

Record type: Article

Abstract

The idea of paying for “value” in healthcare was boosted by Harvard business strategist Michael Porter, who argued that healthcare should focus on value for patients, defined as “health outcome per dollar of cost expended.”1 Competition in the US healthcare system, he argued, had failed because it did not focus on value. Although aimed at the US system, his terminology was widely adopted. In the United Kingdom, new NHS policies were presented in value terms. Paying hospitals by activity was termed “payment by results,” and the system for paying family doctors for specified activities was titled Quality Outcomes Framework. Value based pricing for branded drugs, which will come into force in 2014, is part of this trend. Although the system was intended to improve access to new drugs, the decision to include wider societal costs in the assessment of value could have unintended consequences.

Full text not available from this repository.

More information

Published date: 11 October 2013
Organisations: Primary Care & Population Sciences

Identifiers

Local EPrints ID: 368612
URI: https://eprints.soton.ac.uk/id/eprint/368612
ISSN: 0959-8138
PURE UUID: 538077ab-91a0-458a-8e25-5441f1881e8a

Catalogue record

Date deposited: 06 Sep 2014 13:53
Last modified: 15 Jul 2019 21:45

Export record

Altmetrics

Contributors

Author: James Raftery

University divisions

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of https://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×