• Leveraging Registry Data to Support HTA and Payer Decision-Making

    Leveraging Registry Data to Support HTA and Payer Decision-Making

    Registry

    Health systems worldwide are increasingly realizing the need for well-timed, relevant, and patient-centred evidence to supplement the adoption and reimbursement decisions of new health technologies. Conventional clinical trial data, while crucial for validating safety and efficacy, often fail to represent real-world populations, long-term outcomes, or challenges in the routine clinical practice. Patient registries, which systematically collect patient data on a particular disease or treatment, can be useful in this context. Registry data are being increasingly emphasized as their application expands beyond the traditional role in post-marketing safety surveillance to the foundation for depicting real-world value and efficacy of health technologies.(1)

    Registries offer an exclusive, longitudinal view into patient outcomes, treatments, and healthcare resource utilization; making them a remarkably valuable source of real-world data (RWD) in the shift toward value-based care, where decisions made by healthcare systems must focus on the performance of health interventions in not just the randomized controlled trial (RCT) settings but across diverse and changing real-world populations.(2-4) For health technology assessment (HTA) agencies, registry data offer the ability to assess the efficacy of interventions in routine clinical practice, enable long-term outcome monitoring, and develop more rigorous economic models that account for real-life variables and healthcare resource utilization.(2, 5, 6)

    European and several other HTA bodies are increasingly adopting registry data to make decisions on disease burden, treatment patterns, cost-effectiveness, and comparative effectiveness, especially in areas where conventional RCTs are limited, such as rare diseases or personalized medicine. Registries also facilitate integration of vital insights into long-term safety profiles and the advancing patient experiences over time, elements that are usually beyond the scope of pre-market studies. For payers, this facilitates more certain and customized decisions about coverage, pricing, and resource allocation, particularly when connected with cost and budget impact models.(2, 5, 6)

    However, even with the growing significance of registry data, several structural and technical limitations restrict their widespread adoption in HTA and payer guidance. Data quality, standardization, and interoperability continue to pose challenges, while many registries still depend on internally specified criteria with few universally accepted standards, making cross-registry comparison difficult, which can even hamper the reliability of findings. Also, registries often struggle to keep up with the rapidly progressing health technologies, leaving evidence gaps when new interventions are introduced. These challenges highlight the growing need for standardized quality guidelines, transparent governance, and active data infrastructures that can adapt to the emerging evidence needs.(2, 5-8)

    Having said that, recent digital health advancements, decentralized study models, and integration with electronic health records (EHRs) and claims data are transforming the collection and use of registry data. These innovations lessen the patient and clinician burden, enhance data granularity and relevance, and improve interoperability across systems. They also facilitate connection with refined datasets to address a variety of regulatory, clinical, and economic queries, making registry-based real-world evidence (RWE) more robust, receptive, and relevant to decisions.(9, 10)

    With changes in regulatory landscapes, such as the introduction of European HTA Regulation (11) or the U.S. Inflation Reduction Act,(12) manufacturers, HTA agencies, and payers must rethink evidence types required for health technology submissions. A growing perception suggests that early and sustained collaboration between manufacturers, registries, regulators, and payers is crucial for aligning evidence generation approaches with decision-making requirements. This collective approach ensures the relevance of registries for future, while also supporting smarter, more unbiased, and impactful healthcare decisions.(2, 5, 6)

    Strategically expanding the use of registry data can help the healthcare ecosystem progress towards a patient-centred model, where access, affordability, and outcomes are driven by RWE. Recognizing this potential will require collected effort and careful investment, but it can provide significant value to patients, providers, and payers alike.

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    References

    1. Gliklich RE, Dreyer NA, Leavy MB, editors. Registries for Evaluating Patient Outcomes: A User’s Guide [Internet]. 3rd edition. Rockville (MD): Agency for Healthcare Research and Quality (US); 2014 Apr. 1, Patient Registries. Available at: https://www.ncbi.nlm.nih.gov/books/NBK208643/
    2. Murphy LA, Akehurst R, Cunningham D, et al. Real-world evidence to support health technology assessment and payer decision making: is it now or never? Int J Technol Assess Health Care. 2025 Mar 31;41(1):e20.
    3. MDIC HEPV Initiative. Payer and HTA Perspectives on Real-World Evidence for Medical Devices – Final Report. November 2021.
    4. Jaksa A, Arena PJ, Hanisch M, Marsico M. Use of Real-World Evidence in Health Technology Reassessments Across 6 Health Technology Assessment Agencies. Value Health. 2025; 28(6):898-906.
    5. Windfuhr F, de Vries ST, Melinder M, et al. Stakeholders’ Perspectives Toward the Use of Patient Registry Data for Decision-Making on Medicines: A Cross-Sectional Survey. Drug Saf. 2025 Feb 23.
    6. Evidera. Advancing the Use of Registry Data to Improve Health Technology Assessment and Payer Evidence. ISPOR 2024. Available at: https://www.ispor.org/docs/default-source/intl2024/120eviderav2.pdf?sfvrsn=a1d01ffe_0
    7. Rubinger L, Ekhtiari S, Gazendam A, Bhandari M. Registries: Big data, bigger problems? Injury. 2023; 54(3):S39-S42.
    8. Allen A, Patrick H, Ruof J, et al. Development and Pilot Test of the Registry Evaluation and Quality Standards Tool: An Information Technology–Based Tool to Support and Review Registries. Value Health. 2022; 25(8):1390-1398.
    9. Christian J, Dasgupta N, Jordan M, et al. Digital Health and Patient Registries: Today, Tomorrow, and the Future. In: Gliklich RE, Dreyer NA, Leavy MB, et al., editors. 21st Century Patient Registries: Registries for Evaluating Patient Outcomes: A User’s Guide: 3rd Edition, Addendum [Internet]. Rockville (MD): Agency for Healthcare Research and Quality (US); 2018 Mar. 3. Available at: https://www.ncbi.nlm.nih.gov/books/NBK493822/
    10. Miller RS, Mitchell K, Myslinski R, et al. Health Information Technology (IT) and Patient Registries. In: Gliklich RE, Leavy MB, Dreyer NA, editors. Tools and Technologies for Registry Interoperability, Registries for Evaluating Patient Outcomes: A User’s Guide, 3rd Edition, Addendum 2 [Internet]. Rockville (MD): Agency for Healthcare Research and Quality (US); 2019 Oct. Chapter 1. Available at: https://www.ncbi.nlm.nih.gov/books/NBK551883/
    11. European Commission. Implementation of the Regulation on health technology assessment: Regulation (EU) 2021/2282 of The European Parliament and of The Council of 15 December 2021 on Health Technology Assessment and Amending Directive 2011/24/EU. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32021R2282
    12. IRS. Inflation Reduction Act of 2022. Available at: https://www.irs.gov/inflation-reduction-act-of-2022
  • The Role of Bundled Payments in Transforming Value-based Healthcare Delivery

    The Role of Bundled Payments in Transforming Value-based Healthcare Delivery

    The transformation of healthcare from volume-based to value-based mode has encouraged public and private payers to reform reimbursement models emphasizing on accountability for care quality and healthcare costs. Thanks to the ever-increasing healthcare costs, payers and providers are increasingly preferring bundled payments over fee-for-service (FFS) payment structures. (1,2)

    Bundled payments, also known as episode payments/case rate/package pricing, are defined as, “the reimbursement of healthcare providers (HCPs), such as hospitals and physicians, on the basis of expected costs for clinically-defined episodes of care”. (3,4) Bundled payments are the alternative payment models (APMs), designed for paying multiple providers for coordinating the total amount of services required for a single, pre-defined episode of care. The model is already a popular method for encouraging value-based care without fully engaging providers in downside financial risk contracts.(1)

    There are two types of bundles, viz. retrospective and prospective. A retrospective bundle combines a reconciled budget with the payer or “convener” as a financial integrator of the fees paid out instead of putting the responsibility upon one provider. This arrangement is created on an FFS system and is retrospective, since providers first receive their usual FFS payments, which is followed by the receipt of an additional payment after assessment of their total costs and savings. However, these cost assessments may take over a year to complete. Retrospective bundles comprise of the most prevalent bundled payment system, because they are easier to understand, administer, and execute.(2)

    A prospective bundle pays a fixed price for a set of services covered in the bundle before rendering any or all of the services. An average cost per episode of care is assessed on the basis of historical data and/or regional costs and payment is delivered to providers when an episode is initiated, rather than waiting for its completion. Adjustments to payments are made taking into account other factors, such as outliers, excluded episodes, and so on. (2)

    However, bundled payments are facing several challenges. Their implementation has led to alienation of providers as they have often cited concerns over both the process by which costs for episodes are determined and the ability for smaller healthcare organisations to comply with the process. Having said that, there is still a chance for HCPs to lower their costs and improve the standard of care. Yet, success with bundled payments calls for close coordination between multiple providers over a fluctuating timespan, something that many providers struggle with. To overcome this, the organisations implementing bundled payments must identify the eligibility of recipients through monitoring and tracking. For this, specific tools can be integrated; for e.g., a supporting IT environment, patient tracking, care process redesign, and physician engagement.(2)

    Some examples of the existing bundled payment systems are the Bundled Payments for Care Improvement (BPCI) initiative (2013), the Comprehensive Care for Joint Replacement (CJR) model (2016), and a recently launched and BPCI Advanced initiative (2018) – all of which have been introduced by the Center for Medicare and Medicaid Services (CMS). (5) An example of an area where bundled payment models are showing promising results is the joint replacement procedures. Several providers have reported cost savings, predominantly in post-acute care costs, under the CJR payment bundle.(5)  According to a recent JAMA study (2017), CJR has saved US taxpayers $5,577 or 20.8% per joint replacement care episode for 3,942 patients. (6)

    An increasing number of healthcare leaders are exploring the potential for bundled payments for reward, thanks to: a) the promise of the early BPCI bundles, b) the government’s recently renewed commitment to these models, and c) the combined knowledge gained from early pilots. In fact, evidence suggests that payers are predicting bundled payments to account for 17% of payments by the year 2021. (7) Moreover, large ­employers, crushed by high insurance costs, are directly negotiating bundle pricing. These are the indicators of bundled payments being a key APM in value-based care strategies.(5)

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    References 

    1. LaPointe J. Understanding the basics of bundled payments in healthcare. July, 2016.
    2. Guldin M. What are bundled payments and are they here to stay? December, 2018.
    3. Miller J. Package pricing: Geisinger’s new model holds the promise of aligning payment with optimal care”. Managed Healthcare Executive. June, 2008.
    4. Satin DJ, Miles J. Performance-based bundled payments: potential benefits and burdens. Minn Med 2009; 92(10):33–5.
    5. NEJM Catalyst. What are bundled payments? February, 2018.
    6. Navathe AS, Troxel AB, Liao JM, et al. Cost of joint replacement using bundled payment models. JAMA Intern Med 2017; 177(2):214-222.
    7. Value-based payment hits tipping point. 2016.

    Written by: Ms. Tanvi Laghate

  • Application of Blockchain Technology in Healthcare: Hope or Hype?

    Application of Blockchain Technology in Healthcare: Hope or Hype?

    Value-based healthcare is driven by ‘meaningful’ treatment that matters to the patient. The purpose of value-based healthcare is not minimizing the costs, but maximizing the ‘value’, which is defined by “patient outcomes divided by cost”; (1) thus emphasizing on a patient’s importance. (2)

    The progress in efficient healthcare services relies to a great extent on the technological advances, as well as on the ability of economically and effectively recording and storing data, thus facilitating secure data transfer for various applications. (3) However, the inability to effectively share sensitive data has been observed to prevent and/or delay the improvements in value-based healthcare systems. For instance, paper communications and manual processes are deterring the communication amongst healthcare stakeholders about the possible care gaps. Moreover, most physicians are unaware of the quality measures pertaining to each patient, (4) while almost 80% are unaware of their incentives. (5) Furthermore, the lack of interoperability and linking between the healthcare storage systems adds to the difficulty of data transmission, retrieval, and analysis; thus containing most of the data in silos. In addition, the growing concerns regarding data privacy and security leads to data breaches and malicious attacks on healthcare organizations. Also, these defects result in considerable data inefficiency and depletion, leading to poor health outcomes for the most important stakeholder; the patient. A prevalent lack of incentivized health systems and providers exists that shifts their focus from maximisation of patient outcomes.

    In order to overcome these challenges, a decentralized, distributed ledger infrastructure built around strong cryptography, named as “blockchain technology” is expected to support full digital transformation across the healthcare space. (6,7) To put it simply, blockchain is a log of transactions that is duplicated and allocated across multiple decentralized locations. It offers reliable, unbiased third party mechanisms to gauge the location of a particular data set and also the predictions about its precise transformation. (8) Recently, blockchain technology has been witnessing rapid growth, especially in the healthcare and life sciences domains; and it’s only the beginning of what’s possible. A recent IBM study- ‘how blockchains can provide new benefits for healthcare’- reports that about 16% of healthcare executives are planning to implement a commercial blockchain solution at present and this number is expected to reach to 56% by 2020. (9,10)

    According to a recent survey, blockchain in healthcare is estimated to grow from the current value of $176.8mn to $5.61bn by the end of 2025. (11) Blockchain technology is increasingly emerging as the universal remedy for all the issues regarding healthcare data interoperability and security. It can also play a vital role in overcoming the challenges related to legal systems. Transparency, complete elimination of third-party intermediaries, and reformation of operational processes as well as large costs are some of the major advantages of employing blockchain.3 Furthermore, employing innovative blockchain technology will facilitate patient access, reduce costs for all stakeholders and evade infrastructural limitations to drive value improvement, incentivize innovation; thus accelerating the shift towards personalized healthcare.

    A challenge should first be identified by healthcare organizations, instead of adopting blockchain and searching for its application. There are five areas in healthcare where blockchain can prove to be applicable, viz. Supply chains, clinical trials, provider directory management, patient records, and insurance coverage, preauthorization, and claims adjudication. (12)

    Blockchain can be applied in case of multiple supply chain functions in life sciences, particularly proving beneficial for the life sciences supply chain; such as provenance, serialization track and trace and specialty logistics. (13) Depending on the requirement and types of permissions among data sharers, there can be different types of blockchains providing value to the life sciences supply chain. In case of clinical trials, data like patient demographics, information about adverse reactions, and interim results can be collected, built upon and securely shared among the parties involved in a the conduct of a trial across multiple sites. Blockchain can also help manage and track other trial functions like informed consent across multiple sites, systems, and protocols. Healthcare organizations and physician directories can apply blockchain technology to control decentralized consensus protocols, thus allowing providers and health plans to update listings more quickly. Furthermore, blockchain can organize the whole history of data communications from patient records taken from numerous health systems, pharmacies, and health plans. This information can then be processed into decipherable information for a patient’s own use, or converted into records that can be read by a variety of electronic medical records (EMR) systems. Finally, blockchain can also help dissolving communication barriers between payers and providers. By enabling safe and secure data exchange in real time, blockchain can bring payers and their providers together in their mutual pursuit to deliver improved patient outcomes.(12)

    Blockchain can transform into a more value-based healthcare system by improving patient engagement, further creating opportunities for more consumer-centric product segments and revenue streams.(3)  In near future, approximately 30 percent of life sciences companies are planning to employ blockchain, thus opening new business opportunities and addressing past challenges. Blockchain tools in healthcare applications know no bounds, given the necessity for specialized medicines and therapies.

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    References 

    1. Porter ME. Redefining health Care: Creating value-based competition on results. National Association of Chain Drug Stores. May, 2006.
    2. van den Tempel H. The relationship between blockchain and value-based healthcare. February, 2018.
    3. Sturman C. Blockchain can pave the way for a more value-based healthcare system, report suggests. April, 2018.
    4. Quest Diagnostics/Inovalon. Finding a Path to Value-Based Care. June, 2016.
    5. The Physicians Foundation. 2016 Survey of America’s Physicians. 2016.
    6. The Voyage of Discovery: Blockchain for Pharmaceuticals and Medical Devices. IEEE. April, 2017.
    7. Blockchain: A Catalyst for the Next Wave of Progress in Life Sciences. Cognizant. June, 2017.
    8. Bean R, et al. How Blockchain Is Impacting Healthcare And Life Sciences Today. April, 2018.
    9. Frazeer H. How blockchains can provide new benefits for healthcare. February, 2017.
    10. Marr B. This Is Why Blockchains Will Transform Healthcare. November, 2017.
    11. BIS Research. Global Blockchain in Healthcare Market: Focus on Industry Analysis and Opportunity Matrix – Analysis and Forecast, 2018-2025. 2018.
    12. Reh G. Beyond bitcoin: Five possible uses for blockchain in healthcare. Deloitte. May, 2018.
    13. Guenther C.  Transforming life sciences with blockchain. February, 2018.

    Written by: Ms. Tanvi Laghate

  • What is ‘Pay-for-Performance’ Model in Healthcare?

    What is ‘Pay-for-Performance’ Model in Healthcare?

    In the US, ‘pay-for-performance’ (P4P) programs have gained popularity among healthcare policymakers as well as private and public players, including Medicaid and Medicare. The term ‘pay-for-performance’ covers all the initiatives that contribute to the quality, efficacy, and overall value of healthcare. (1) These programs provide financial incentives or disincentives to providers or institutions as per their performance on quality measures. Ideally, the well-targeted and designed P4P programs would improve the behaviour of providers and healthcare systems by enhancing the quality of care delivery, reducing redundant use of expensive healthcare services, and improving patient health outcomes. (2,3)

    Moreover, Affordable Care Act also makes a provision for the use of P4P programs, particularly in Medicaid, enabling identification of most effective designs and programs through experimentation. (1) The P4P programs are especially relevant in the US healthcare owing to wide gaps in healthcare quality and the long-standing fee-for-service (FFS) system that may incentivize for volume of services instead of quality. (4) Therefore, the P4P programs make for a great strategy to transition healthcare to value-based care. (5)

    In spite of the attractive advantages of P4P programs, there is not enough evidence on P4P programs for improving patient outcomes. There is mixed evidence from a recent systematic review examining the efficacy of P4P programs in the United States, wherein modest improvements in process-of-care outcomes but little effect on patient outcomes were reported. (6) However, the evidence today has grown substantially, and other countries, such as the United Kingdom, have even gained extensive experience with large P4P initiatives that may provide further relevant information. (3)

    A typical P4P program offers a bonus to healthcare providers upon meeting or even exceeding the agreed-upon quality or performance measures, for e.g. reductions in HbA1c in diabetic patients. These programs may also incentivize improvement in performance over a certain duration, such as year-to-year decreases in the rate of avoidable hospital readmissions. They can also levy financial penalties on providers failing to achieve specified goals or cost savings. For instance, the Medicare program doesn’t pay hospitals anymore to treat patients who acquire certain avoidable conditions during their hospital stay, such as pressure sores or urinary tract infections associated with use of catheters. The quality measures applied in P4P programs are categorized into- processes, outcomes, patient experiences and structures. (1)

    Other countries than the US and UK are also implementing P4P programs for enhanced care delivery. Such as, China’s first P4P insurance for oncology patients that would cover around 34 cities has been implemented by Pfizer Inc. Pfizer recently launched a P4P insurance program for its breast cancer drug Ibrance palbociclib in China. Pfizer has collaborated with insurance company Shanghai Branch of PICC Health Insurance Co. Ltd. (Beijing, China) together with the medical payment services company Shanghai MediTrust Health Co. Ltd. (Shanghai, China) to develop the Bo’ai Xin’an – Patient Benefit Management Program- in order to reimburse enrolled patients up to 33.5% of their Ibrance treatment cost if they experience disease progression or metastasis within the first 126 days after initiating the treatment with Ibrance together with an aromatase inhibitor. (7) Another examples of P4P programs in the US include some private sector programs, such as California Pay for Performance Program, Alternative Quality Contract; and also a few public sector programs, such as Value-Based Purchasing Program by the Centers for Medicare and Medicaid Services (CMS). (1) Pay for performance model has also been implemented to incentivize clinicians for improved cardiovascular care in primary care clinics using electronic health records (EHRs). (8)

    Having said that, there are still mixed findings about the success of P4P programs. In addition, the affordability element has only recently been added in many of these programs. Also, there is a possibility of controversies between payers and providers.  Therefore, implementation of P4P programs require more research and experimentation, which would include thoughtful assessment over a period of time to identify design elements in order to positively affect outcomes. (1) Furthermore,  measures need to be used strategically as part of a major quality improvement initiative, together with increased investment in the basics of measurement development. (9)

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    References 

    1. Pay-for-performance. Health Affairs- Health Policy Briefs.  October, 2012. 
    2. Epstein AM, Lee TH, Hamel MB. Paying physicians for high-quality care. N Engl J Med 2004; 350:406-10.
    3. Mendelson A, Kondo K, Damberg C, et al. The effects of pay-for-performance programs on health, healthcare use and processes of care – A systematic review. Ann Intern Med 2017; 166:341-353.
    4. Institute of Medicine. Report Brief. Crossing the Quality Chasm: A New Health System for the 21st Century. 2001. 
    5. What is pay for performance in healthcare? NEJM Catalyst. March, 2018.
    6. Damberg CL, Sorbero ME, Lovejoy SL, et al. Measuring Success in Health Care Value-Based Purchasing Programs: Findings from an Environmental Scan, Literature Review, and Expert Panel Discussions. Santa Monica, CA: RAND Corporation; 2014. Available at: http://www.rand.org/pubs/research_reports/RR306.html
    7. Hongjiang li. Pfizer launches China’s first pay-for-performance model for cancer. January, 2019.
    8. Effect of pay-for-performance incentives on quality of care in small practices with electronic health records: a randomized trial. JAMA 2013; 310(10):1051-9.
    9. Koutnik-Fotopoulos E. Pay-for-performance: Does it really work? Managed Healthcare. 

    Written byMs. Tanvi Laghate

  • How Innovative Alternate Payment Models Are Bringing Change In Healthcare?

    How Innovative Alternate Payment Models Are Bringing Change In Healthcare?

    Drug prices in the US are the highest in the world, which necessitate new or alternate payment approaches. For instance, the new treatments for hepatitis C virus (HCV) infection are highly effective and very expensive at the same time, at least from the view of many payers, physicians, and patients. Even 5 years after these drugs were introduced, only 15% of the estimated population of more than 3 million HCV patients in the US have been treated. This can also be due to budgetary constraints of the state Medicaid programs. (1)

    In the example stated above, the ideal way to treat the HCV infection would be at the population level, treating every patient possible, at a possible speed. Since the medicine is shifting towards value-based care day by day, it is essential for patients and physicians to have flexible, innovative, and practical payment models that would facilitate better outcomes. As a result, many industry stakeholders are predicting the introduction of new alternate payment models (APMs) that are in being developed currently and will possibly be rolled out later this year. Moreover, the Centers for Medicare and Medicaid Innovation (CMMI) is responsible for the assessment of alternative payment models (APMs), such as bundled payment models that would reduce program expenditures under Medicare, Medicaid and the Children’s Health Insurance Program (CHIP) in order to increase quality and efficiency. (2) In addition, with the support of increasing evidence and momentum, APMs are the precise solution to today’s cost and quality challenge in healthcare. They promise to bend the healthcare cost curve to achieve a sustainable, long-standing future for Medicare and reasonably priced private coverage. (3)

    Having said that, Medicaid programs in several US states have limited access to treatment. For instance, Louisiana State only treated 384 HCV patients last year (2017-18) out of an estimated 35,000 Medicaid beneficiaries carrying the virus. Consequently, the Centers for Medicare and Medicaid Services (CMS) warned the states about possible violation of statutory Medicaid requirements owing to restricted access to hepatitis C treatments. (4)

    However, as a solution, Louisiana State is soon adopting the ‘Netflix Model’ that involves a licensing deal, to expand access to treatment. As per this model, instead of paying for each prescription individually, the State would pay the drug company a subscription fee for medication for several years in exchange for unlimited access to treatment, just like the consumers paying a monthly fee to stream unlimited television shows and movies. (4,5) This ‘Netflix Model’, when applied to health care, makes a lot of sense. This is because the pharmaceuticals R&D costs can be high, but the manufacturing costs, much like software, are often low. Netflix content is essentially purchased through a monthly license, where the consumers are not charged a fee every time to view a show. The basic idea here is to incentivise the content creator, not limiting the ability to watch since marginal costs are low. (4)

    Similar to the ‘Netflix Model’, researchers have also proposed drug-licensing models for health care that promise increased drug use without altering patients’ out-of-pocket spending, health plans’ costs, or drug companies’ profits. These models are based on an idea of buying annual drug licenses to ensure unrestricted access to a clinically optimal number of prescriptions over the course of a year. (6) Furthermore, new efforts are in progress in Massachusetts to figure out ways to pay for the potential million dollar price tag for an experimental one-time therapy designed to treat the devastating, rare disease of spinal muscular atrophy and its underlying genetic cause. Even in this case, similar to the ‘Netflix Model’, the health insurers are considering to pay for the treatment over several years, which if succeeded, could hopefully prove to be a viable model for the entire US. (7) Here, Novartis’s AveXis unit, the manufacturer of the gene therapy Zolgensma, has suggested a price tag of up to $5 million, and is in talks to participate.

    Evidence from literature has shown such subscription models to improve outcomes and save money at the same time. Subscriptions can better balance the public health interest in gaining rapid, extensive and inexpensive access to these drugs than traditional fee-per-dose reimbursement. This can further ensure that manufacturers’ generate enough revenues to justify the drugs’ development costs. (4-6)

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    References 

    1. Trusheim MR, Cassidy WM, Bach PB. Alternative State-Level Financing for Hepatitis C Treatment—The “Netflix Model”. JAMA 2018; 320(19):1977-1978.
    2. Landi H. Are New APMs from CMMI Coming Soon? Industry Stakeholders Forecast Bold Moves from the CMS Innovation Center in 2019. 
    3. Leavitt MO. Alternative payment models in healthcare are a must. January, 2017. 
    4. Goldman DP. When we find a cure, price it like Netflix to ensure access. September, 2018.
    5. Johnson CY. Louisiana adopts ‘Netflix’ model to pay for hepatitis C drugs. January, 2019. 
    6. Goldman DP, Jena AB, Philipson T, et al. Drug licenses: A new model for pharmaceutical pricing. Health Affairs 2008; 27(1).
    7. Court E. A revolutionary drug that could treat a rare and devastating disease is prohibitively expensive. But one state has a plan to pay for its potential $5 million price tag. January, 2019. 

    Written by – Ms. Tanvi Laghate

  • How Data Analytics Utilisation Can Direct Population Health Programs?

    How Data Analytics Utilisation Can Direct Population Health Programs?

    An excellent population health management approach considers multiple aspects of health, such as sufficiency of medical care, public health interventions, social and physical environments and related services, genetics, and individual behavior. (1) Data from multiple sources can be used to conduct population health management programs and to assess their value. In addition to these diverse data, data from big population health programs are driven by huge volume, high speed, and incoherent data flows. (2)

    Population health programs improve health by catering to individuals with unmet medical needs as well as taking actions to close these gaps; thereby encouraging quality in health care that focuses on getting the right care to the right patient at the right time. (3,4) Given the extensive potential of population health management, its execution may require maximum utilisation of big data sources existing across the healthcare and other social systems. (5)

    Advanced data analytics, when used appropriately, has the potential to improve patient care in the health care system. With the shift in healthcare towards outcome and value-based initiative, analysis of existing data to determine the most efficient practices can enable cost reduction and improvement in population health. With more and more healthcare systems becoming data-reliant, insights regarding health of population along with data on high-risk individuals can be understood with the help of data analytics. With this knowledge, the health systems can more competently assign resources thus maximising revenue, population health and, most importantly, patient care. (6)

    The ongoing big data utilisation by population health programs is capable to get even bigger in time to come. Multiple data types are usually used to manage such programs. Clinical data includes information on engaging health management programs as well as data on health risks collected via survey-based health assessments. External data sources describing characteristics of home life, neighbourhood, and the local supply and quality of health care can provide understanding of the origin of social or physical environment. Yet, other survey data can be helpful in assessing health-related quality of life (HRQoL) and insurance arrangements, perceptions of access to care, and the quality of care received. (2)

    Delivering practical insights to help providers get an understanding of chronic diseases as well as tracking the success of practice transformation processes are two main driving forces while developing big data analytics infrastructure and reporting during population health programs. It is imperative to optimize electronic health records (EHRs) to collect some data elements in a more standardized way, and to emphasize on executing data governance programs that account for currently unstructured data as well as data that to be structured better. (7)

    Implementing a robust framework of good governance will help providers and payers to move towards desired clinical and financial improvements in the near future. The management of population health programs has proven beneficial with recent advancements in big data; especially, when big data is successfully leveraged to execute a comprehensive program. Additionally, data generated from these programs have been used to routinely monitor program performance and to conduct in-depth program evaluations. Further advancements in technology will certainly improve population health and social service programs through the use of big data. (2,7)

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    References

    1. Kindig D, et al. What is population health? Am J Public Health. 2003; 93:383.
    2. Wells ST, et al. Leveraging big data in population health management. Big Data Analytics. 2016; 1:1.
    3. Chen EH, et al. Improving population health through team-based panel management: comment on “Electronic medical record reminders and panel management to improve primary care of elderly patients”. Arch Intern Med. 2011; 171:1558–9
    4. Clancy CM. What is Health Care Quality and Who Decides. Committee on Finance Subcommittee on Health Care United States Senate, Agency for Health Care Research and Quality, U.S. Department of Health and Human Services. 2009.
    5. Hartman C. Healthcare’s growing data opportunity. Leveraging clinical intelligence to elevate population health management strategies. Health Manag Technol. 2014; 35:24.
    6. How healthcare analytics improves patient care. 
    7. Bresnick J. Population Health is Top Data Analytics Challenge for Providers, Payers. HealthIT Analytics. 
  • How Integration of Multiple Data Sources can Improve Patient Insights?

    How Integration of Multiple Data Sources can Improve Patient Insights?

    There are humungous quantities of data existing in healthcare; data from all kinds of sources, such as clinical, patient, payer, R&D, pharmacy as well as revolutionary technologies that are being quickly embraced, for e.g. data from wearable devices. According to a report by International Data Corporation (IDC), (1) the volume of healthcare data which was observed to be around 153 exabytes in 2013 is estimated to reach around 2,314 exabytes in the year 2020. Therefore, integrating data from all types of diverse sources and clinical systems is a fundamental challenge for any healthcare entity in order to enhance patient care and performance indicators. (2)

    It’s obvious that these huge amounts of health data are essential for betterment of both the cost as well as the quality aspects of care. Also, analyses of these data can provide significant insights for patients and researchers. However, methods to merge data from multiple formats and sources ranging across various systems used within clinics are still unclear. Data quality and accessibility provided by these systems can vary to a great extent. The healthcare industry has been traditionally observed to embrace new technologies; however, it lags behind while handling data, particularly data sharing and integration. To add to the practical challenges of data integration processes, compliance and capability to join forces with all the healthcare stakeholders also faces problems. As a consequence, data collection, storage, integration, and analysis make up for complicated processes. (2)

    There are some specific underlying concerns surrounding multiple, un-integrated data sources, viz. lack of broad view into enterprise-wide data as well as data standardization and governance, and matching patients to care events. Lack of broad view can impose challenges resulting in time consuming and expensive procedures during development of meaningful internal and external reports, like quality and patient safety regulatory and accreditation reporting. It may also hamper efforts to identify and prioritize opportunities to reduce costs, while improving care and patient experience. Lack of data standardization and governance can hamper performance of important analytics owing to multiple data sources, definitions and terms. Last but not the least, it is crucial to match patients accurately to their respective care events across multiple sites of care, which can be a complicated process. (3,4)

    There is no doubt that the Healthcare systems undoubtedly require effective data integration tools and greater level of flexibility when handling data, typically from multiple sources. The standards implemented in many countries recently have been intended for healthcare data integration and unification. For instance, in the USA the Health Information Technology (HITECH) Act (5) offers incentive payments to health care providers implementing certified EHR technology while showing meaningful use of that technology. HIPAA standards provide healthcare data protection; while HL7 standards allow clinical and administrative data communication between software applications used by various healthcare providers. (6)

    In order to gain patient insights, integration of data from multiple sources can prove to be beneficial. One way to facilitate data integration can be incorporating data warehouses [enterprise data warehouses (EDWs)], which can facilitate easy data mining in case of faster, major data initiatives. These methods can pull in and push out data with just one interface. Furthermore, data governance policies focusing on data standardization, advances in data reporting and further education and communication need to be in place in order to make changes in how data is to be collected, defined, and consumed. By integrating health data with financial and cost data to track patient encounters across multiple care locations and information systems, it is easier for health systems to compare patient quality and cost, i.e. comprehending the exact process of ‘value’ delivery. This insight is the difference between surviving and thriving in the new value based purchasing environment. (4)

    Clinical data integration from multiple sources can provide a wide-ranging perspective across care delivery systems. Health systems can easily carry out reporting while employing quality improvement initiatives, such as analytical care variation and measuring implementation of evidence-based guidelines. (4)

    To sum it all up, multiple data integration can obviously facilitate electronic exchange of information, while also reducing the costs and intricacies of building interfaces between different systems; thus proving valuable patient insights. The foundation of the healthcare industry’s data-sharing conundrum is data interoperability. Genuinely integrated systems must be easily understood by users, i.e. these systems must be able to exchange data and consequently put it forward through inclusive and user friendly interface.

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    References 

    1. Corbin K. How CIOs can prepare for healthcare ‘data tsunami’. December, 2014.
    2. Healthcare data integration: How to combine data from multiple sources. 
    3. Managing the integrity of patient identity in health information exchange. American Health Information Management Association. 2009. 
    4. Turning Data from Five Different EHR Vendors into Actionable Insights. Health Catalyst.
    5. Health Information Technology (HITECH Act). 2009. 
    6. Summary of the HIPAA Privacy Rule. 
  • How Building a Culture of Measurement in Healthcare can Improve Patient Outcomes?

    How Building a Culture of Measurement in Healthcare can Improve Patient Outcomes?

    The healthcare industry is challenged with administrative and regulatory intricacies that make achieving the healthcare objectives, such as better patient outcomes and reduced costs, difficult. Difficulties faced while improving patient outcomes are predominantly taxing, since health systems measure and report thousands of outcomes annually. (1) In addition, healthcare industry is saturated with the need for improved quality and safety programs. (2) Quality healthcare refers to “the degree to which health services for individuals and populations increase the likelihood of desired health outcomes and are consistent with current professional knowledge”. (3)

    Moreover, healthcare is moving from the ‘volume of services delivered’ to the ‘value’ created for patients, which is defined as the outcomes achieved relative to the costs. (4) However, this shift has been slow, to a certain extent, owing to the restricted measurement of outcomes that matter to patients, except survival. In addition, ‘death’ is an unusual outcome in many situations, wherein the measurement fails to differentiate excellent from merely capable providers. (5)

    “To Err Is Human”! Also, most of the medical errors originate from defective systems and processes, not individuals. These incompetent and inconsistent processes, changing patient cases and health insurance, varying degrees of healthcare providers’ education and expertise, and various other aspects add up to healthcare complications. Many believe that the healthcare industry today operates at a lower level than it can and should; however, it should focus on more comprehensive goals, such as efficient, safe, patient-centric, well-timed, and unbiased care delivery. The efficacy and safety intentions can be delivered through process-of-care measures, assessing whether the processes achieve the desired goals while avoiding those that prompt the harm. Measurement of healthcare quality determines the effects of healthcare on desired outcomes and also assesses the degree of adherence of healthcare to processes that are evidence-based or those adhering to the general consensus that is in line with patient preferences. (6)

    There are many outcome measures, ranging from changes in blood pressure in patients with hypertension to patient-reported outcome measures (PROMs). However, there are seven main outcome measures which are used by healthcare institutions and other stakeholders, viz. mortality, rehospitalizations, safety, efficacy, patient experience, timeliness of care and efficient use of medical imaging and other markers. Having said that, processes to accomplish the outcomes are as important as is achieving those outcomes. Process measures determine provider productivity and adherence to standards of recommended care. For example, to reduce the incidence of skin breakdown, a particular health system may apply the process measure to perform the risk evaluation by using Barden Scale for reducing pressure ulcer risk in all the appropriate units in the organization/institution. If health systems are focused on an outcome too much, they may lose track of the process. (1)

    Apart from all the shortcomings, the primary goal of the healthcare systems and organizations globally is to improve patient outcomes. However, this improvement cannot take place without efficient measurement. As all the stakeholders work attentively to achieve the composite healthcare goals, they need to prioritize the outcomes measurement tools: transparency, integrated care, and interoperability. When used along with each other, these tools can improve and maintain outcomes measurement efforts by generating a data-driven culture that embraces data transparency and an integrated care environment to treat patients. This also improves critical care transitions and interoperable systems, which facilitates the perfect exchange of outcomes measurement data between clinicians, departments, and hospitals. (1)

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    References

    (1) Tinker A. The top 7 outcome measures and 3 measurement essentials.
    (2) National Healthcare Quality Report. Rockville, MD: Agency for Healthcare Research and Quality; 2006. 
    (3) Lohr KN, et al. A strategy for quality assurance in Medicare. N Engl J Med. 1990; 322:1161–71
    (4) Porter ME. What is value in health care? N Engl J Med 2010; 363:2477-2481
    (5) Porter ME, et al. Standardizing patient outcomes measurement. N Engl J Med 2016; 374:504-506
    (6) Hughes RG. Tools and Strategies for Quality Improvement and Patient Safety. In: Hughes RG, editor. Patient Safety and Quality: An Evidence-Based Handbook for Nurses. Rockville (MD): Agency for Healthcare Research and Quality (US); 2008 Apr. Chapter 44.

  • How Healthcare Delivery is Changing with “Value Based Contracting”?

    How Healthcare Delivery is Changing with “Value Based Contracting”?

    Health care is undergoing remarkable change with the global delivery system transitioning to a value-based system from the fee-for-service approach, which has been in place for the past half century. It is predicted that, in this ever evolving business model, hospitals, health care systems, physician groups, and other health care providers will take on more risk, along with the responsibility for delivering defined services to a specific population at a preset measures of price and quality. As a result, novel care delivery networks and value-based arrangements are emerging in the health care communities. While the rate of revolution varies in different communities, health care organizations must be proactive in order to not lag behind. (1,2)

    “Value” in health care is often referred to as the result of quality divided by cost, or the health outcomes achieved per dollar spent. “Value-Based Contracting” is an agreement with a provider that contains alternative payment methodologies, which are based on indicators of value, such as patient health outcomes, efficiency, and quality. This concept is different from volume or fee-for-service based contracting, where payment is made for every unit of service delivered, often without terms related to outcomes, quality, or cost performance. (3)

    Regardless of challenges, progressive health care leaders meaning to deliver the value imperative, are moving their organizations forward by adapting to value-based contracting. The anticipated benefits to all stakeholders, viz. patients, health care providers, payers, employers, and the community include the compensation in line with quality and outcomes, improved and efficient administrative delivery, and better access to care. (1)

    Health care organizations, for successful establishment in the markets, will need to adapt to value-based contracting sooner. This is because the current level of involvement in contracting varies widely. (4) Furthermore, for a booming transition to value-based arrangements, hospitals and health care systems must be supported with the following three sources: (1,5)

    • Mutual goals and incentives
    • Robust leadership and governance
    • The combined persistence of a value mindset

    Numerous financial and operational considerations are available for health care providers entering into value-based care; which include capital requirements, unit costing and tracking (for the evaluation of performance of the contract), financial assessment and planning, and contracting capabilities (expertise and strength of contracting relationships). Vigorous data infrastructure coupled with the technical know-how is necessary in order for providers to meet quality targets while proactively, effectively, and efficiently managing the care of a specific patient population under a value-based contract.i,v

    To conclude, appropriate transition to value-based contracts will require planning, new skills, and a new approach to health care delivery implemented along with measured/incremental steps. Without a mutual partnership and communication between hospitals and health care systems, physicians, other providers, and payers, the probability of long-term success with risk contracts will be limited. Only strong health care leaders with a value mindset can help their organizations make a successful transformation. (5,6)

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    References

    1. Value-Based Contracting. Health Research & Educational Trust and Kaufman, Hall & Associates, Inc., Chicago: July 2013.
    2. Porter ME, et al. Redefining Health Care: Creating Value-Based Competition on Results. Boston: Harvard Business School Press, May 2006.
    3. Shifting from Fee-for-Service to Value-Based Contracting Model. United Healthcare. 2012.
    4. Gupta S. Value-based contracting for Risk, and the importance of Claims Data. Edifecs.
    5. McClellan M, et al. Implementing value-based insurance products: A collaborative approach to health care transformation. Health Policy Issue Brief. June, 2015
    6. Value-based care in life sciences: The role of digital platforms. Cognizant 20-20 Insights. December, 2017.