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Drug Makers Discuss New Ways to Trim Health Care Costs at ZS Associates and eyeforpharma Forum
Date:3/17/2010

before a drug comes to market.

According to Cyndy Nayer, CEO of the Center for Health Value Innovation, re-training all the players in the market including pharmaceutical manufacturers to focus on the value of health rather than merely the cost of healthcare is the central issue. "When stakeholders align to create health, adherence is improved, quality is improved, and the financial trend is improved.  Through outcomes-based contracts, in which improved health status and quality become the platform for purchasing, the alignment occurs.  This is the true outcome of value-based design, and innovative companies are moving rapidly to this space," said Nayer.

"Though pharmaceutical companies face many regulatory challenges when partnering with payers, the benefits of doing so outweigh the difficulties of implementation," Bakker Lee said. "Successful value-creation partnerships can contribute to improved patient outcomes and reduced healthcare costs, and may help manufacturers fight commoditization and succeed in a rapidly changing marketplace."

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