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Value-Based Contracts: Relief From Regulatory Barriers In Sight?

 
• By Cathy Kelly

Novartis CEO Jimenez suggests Trump Administration may help remove regulatory barriers to US outcome-based contracting between manufacturers and payers; Duke Margolis Center for Health Policy plans policy initiative to promote value-based purchasing for drugs, medical devices and gene therapy.

US dollars and pills

The Trump Administration has signaled a willingness to entertain arguments for removing the regulatory obstacles hampering the execution of value-based contracts for pharmaceuticals, Novartis AG CEO Joseph Jimenez said during a Duke Margolis Center for Health Policy workshop Feb. 9.

Jimenez was referring to FDA restrictions on communications between manufacturers and payers, a lack of legal “safe harbors” from federal anti-kickback rules, and concerns that prices negotiated under outcomes-based contracts...

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