Value-Based Contracting: Rewarding Value Over Volume

Value-based contracting is about getting patients access to new breakthrough therapies that will improve health outcomes, while creating incentives that reward the value of therapies over volume, and quality over quantity. The concept is more about reducing overall health care costs than reducing just drug spending.

It is important to keep in mind that the U.S. health care system is extremely complex, and value-based contracting is not a magic bullet to reduce costs. Value-based contracting is just one of many innovative strategies being employed by managed care organizations to reward value and improve patient outcomes. Interest in value-base contracting also reflects the overall health care system’s general shift towards value-based care delivery and reimbursement.

We believe value-based contacting is a concept worth pursuing. It’s an important tool for our members. In fact, AMCP has taken a leadership role in understanding and developing value-based contracting—and will continue to do so in the future.