What Physicians Want From Pharma in a World of Value-Based Delivery

As healthcare undergoes a rapid shift toward value-based care, pharma can expect to experience its own changes — but how will those changes manifest, and when? To find out, Oliver Wyman surveyed both physicians working under value-based models and senior executives at five of the most established ACOs.

Their answers are the subject matter of a free, live webcast hosted by Oliver Wyman’s pharma experts Mark Mozeson and Peter Gilmore. Learn what physicians in value-based models think about the potential for drug therapy to reduce cost of care and how they want to work together with pharma to achieve their new goals. Also, gain insight into what leaders of value-based care predict for the industry and how they see successful partnerships with pharma evolving.

HOW PHARMA CAN DELIVER VALUE

Almost two-thirds of physicians working in value-based models said they believed there was a role for branded therapies in reducing the total cost of care, but only 28 percent believe pharma does a good job of presenting cost-benefit data. We’ll share our ideas for how pharma can turn this perception around—and into new value-based opportunities.

2013 Oliver Wyman Physician Survey

Source: Oliver Wyman analysis

1Why did you decide to survey physicians?

As payers and providers move to value-based care — which they are doing in great numbers, there’s a fundamental shift in the way they think about economics. Under fee-for-service, every patient touch is a source of revenue. Under fee-for-value, every touch is a cost. Total cost of care becomes the key metric. We wanted to see how far along doctors were in thinking about how drugs fit into the new model.
2How hard are payers and providers thinking about drugs?

At the moment, not as hard as they might. We asked them to rank their concerns. Not surprisingly, total cost of care headed the list, followed by cost of inpatient care, emergency department care, and primary care. Pharma was next. The industry has a bit of time, and that’s fortunate, because companies have some work to do — not least of which is changing how they're viewed by value-based providers.
3What is wrong with pharma’s image?

Physicians told us they saw a role for branded drugs in helping them control total cost of care. But they didn’t have much faith that pharma companies would actually deliver the data and assistance they need. As one ACO leader put it, “Most of the data we see from pharma is biased toward the pharma and not very helpful in terms of defining value for us.” That perception needs to change. For that to happen, pharma companies really need to understand what is happening to physicians.
4What do value-based physicians want from pharma?

The top three things on their list all had to do with better evidence. They want cost-effectiveness data backed by robust clinical trials, data to show how use of drugs affects outcomes and total cost of care, and insight on how the manufacturer’s product is affecting costs and outcomes at other providers. There were positive responses to benefits like discounts for non-responders, diagnostics, and added services, but data was king.