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Creating Win-Win Solutions from the Ongoing Drug Cost and Price Debate
Decision Resources, Inc, July 2007, Pages: 31
In 2007, we are approaching a tipping point in the standoff between drug customers/payers and drug producers, each striving to achieve an advantage in the struggle between drug cost versus drug price. The solution to this struggle between closely aligned yet combative industry forces lies in the creation of win-win solutions that benefit not only payers and industry but also, more importantly, society as a whole.
Questions Answered in This Report
- In today’s complex pharmaceutical marketplace and prescription decision-making process, monetary issues now reign supreme. How has the cost/price issue influenced the decision-making process of drug customers and health care providers? Of drug manufacturers?
- A paradox has evolved in today’s health care industry: treatment is growing more expensive, but more and more people are demanding to be treated. How is the desire for universal health care coverage conflicting with the reality of the market? What sort of middle ground will emerge with regard to coverage that will satisfy both parties?
- The advent of knowledgeable and financially motivated customers has irrevocably changed the way in which buyers perceive drug price. What is the perception of drug price in the context of health care costs? How can the pharmaceutical industry influence or alter this perception?
- The path to success in the dynamic between the health care customer and pharmaceutical industry is not through a decisive victory of one side over the other. What changes in the customer/industry relationship will ensure future success for pharmaceutical companies? What new stratagems could be adopted to yield winning solutions for both parties?
Scope
- Drug cost/price criticisms: critics’ emotional and economic positions against perceived high drug costs.
- The battle lines: entrenched customer positions about health care costs and pharmaceutical industry positions on price.
- Current cost/price stratagems: strategies used by customers and the industry to manage costs and prices.
- Value/price concessions: select industry pricing strategies that reflect a more value-based approach to pricing.
- Market outlook: methods for creating a win-win pricing environment and our forecast for future customer/industry dynamics.
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