Brief Blog: Commonwealth Fund on US Health Costs, Quality. Article on Healthcare Innonvation Pricing.

Commonwealth Fund publishes a report on international health costs and quality; US fares poorly.

Healthcare Dive here.  42-page report here.

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Separately, a HEOR article from Olivenca et al. on the market dynamics of innovation pricing for difficult and risky R&D products.   Essay here.  Original article here. (Open access pdf, J Comp Effect Res.)

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Here's an AI summary of Olivenca:

The article discusses the complexities of the market design for innovative pharmaceuticals, which are often misunderstood. It emphasizes the unique market structure shaped by regulatory and legal frameworks, such as FDA regulations and intellectual property laws. The "blockbuster model" is highlighted, where revenues from successful drugs must cover the high costs and risks associated with numerous failed attempts. 

 

The article critiques the notion of regulating drug prices based solely on research and development (R&D) costs, arguing that such an approach overlooks the value that new medicines bring to patients and society. It also addresses misconceptions around R&D cost calculations, noting that these costs are challenging to pinpoint accurately and are not directly used to set drug prices. Instead, market-based drug prices reflect the benefits offered to various stakeholders, including patients and healthcare systems. The role of health economics and outcomes research (HEOR) professionals in communicating these market dynamics to policymakers and the public is deemed crucial.

Here's an AI summary of Commonwealth:

The "Mirror, Mirror 2024" report by the Commonwealth Fund compares the performance of health systems in 10 countries, including the U.S., across five domains: access to care, care process, administrative efficiency, equity, and health outcomes. The key findings indicate that Australia, the Netherlands, and the United Kingdom are the top performers, while the U.S. ranks last with significantly lower performance. The U.S. also stands out for its high healthcare spending relative to its poorer outcomes.

The report emphasizes the U.S.'s unique challenges, such as limited access to care due to affordability issues, administrative inefficiencies caused by a complex insurance system, and pronounced inequities in care access and experiences, particularly among lower-income groups. Despite high spending, the U.S. struggles with life expectancy and preventable deaths, highlighting the need for comprehensive reforms. The report suggests that lessons can be drawn from other countries, particularly in areas like equity, efficiency, and health outcomes.