Sunday, October 14, 2007

Pay for Performance for Drugs?

Some pharmaceutical companies are trying pay for performance in Europe as a way to avoid price cuts, especially for expensive new treatments. While North America is still the Land of Opportunity for drug companies with 47% of global pharmaceutical sales, Europe is in second place with nearly a 30% share. Problem is the government health programs tightly control costs. They're rather old-fashioned in their attitude, expecting evidence that new drugs improve the health of patients and are really better than older, more proven medications.

In the U.S. Aetna and other insurance companies are also exploring this process to cut costs of the latest and most expensive medications. Too often newer isn't necessarily better, especially at the higher price. Cigna and other companies say they simply want the drug companies to put their money where their mouth is ... for a change.

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