HEDS is part of the School of Health and Related Research (ScHARR) at the University of Sheffield. We undertake research, teaching, training and consultancy on all aspects of health related decision science, with a particular emphasis on health economics, HTA and evidence synthesis.

Thursday, 16 December 2010

Value-based pricing proposals published

Published today, open for consultation until 17th March.  Cutting to the chase.....

“....under the new system of value-based pricing, the Government would apply weightings to the benefits provided by new medicines, which would imply a range of price thresholds reflecting the maximum we are prepared to pay for medicines. These thresholds or maximum prices would be explicitly adjusted to reflect a broader range of relevant factors so they could be used to calculate the full value of a new product.

The Government proposes that the price threshold structure is determined as follows:
  1. there would be a basic threshold, reflecting the benefits displaced elsewhere in the NHS when funds are allocated to new medicines;
  2. there would be higher thresholds for medicines that tackle diseases where there is greater “burden of illness”: the more the medicine is focused on diseases with unmet need or which are particularly severe, the higher the threshold;
  3. there would be higher thresholds for medicines that can demonstrate greater therapeutic innovation and improvements compared with other products;
  4. there would be higher thresholds for medicines that can demonstrate wider societal benefits.”
A response form is available on the same site as the consultation document (here).  I suggest you use it.