Manufacturers

Building a Compelling Value Story

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How budget impact modeling can create competitive differentiation in a crowded market

July 02, 2015

The ongoing discussion about value-driven healthcare is no longer just marketplace chatter. It's reality. And, it's impacting every stakeholder in the healthcare landscape where a focus on quality and cost-effectiveness defines the new paradigm. As the pressure to demonstrate measurable outcomes intensifies, manufacturers are realizing that the shift from service volume to value requires a rigorous approach to capturing and delivering credible economic evidence - evidence that can tell a more powerful financial impact story in a crowded and competitive market.

Economic evidence leads to a differentiated treatment approach

In a global environment, manufacturers know that competitive realities for therapies get more complex every day. Launching a therapeutic innovation in a market where alternative therapies offer similar clinical benefits - be they branded, generic, or perhaps even a biosimilar - can dilute a product's potential success. When market conditions demand better differentiation strategies, economic modeling tools can provide the substantive evidence necessary to prove financial impact on patients, payers and the healthcare system at large. A budget impact modeling tool, for example, can unlock a product's full potential by quantifying and communicating a treatment's ability to reduce drug and administrative costs, produce medical cost offsets and offer a reduction in adverse event rates. And, more and more, this kind of evidence is becoming a necessity for decision makers determining coverage placement.

A budget impact model can build credibility

An economic model must be both credible and methodologically sound to satisfy health authorities, reimbursement agencies and payers. This makes careful model design an indispensable step toward enabling products to reach their full commercial potential. For example, key criteria for a budget impact model include:

  • Methodological rigor. Earning credibility with payers and other budget stakeholders requires scientific rigor and use of sound modeling practices that offer real-world insight into a product's economic value.
  • Transparency with clinical evidence. Another key factor in building credibility is the rendering of budget assumptions based on totally transparent and uncontestable sources of clinical evidence. Visibility into the clinical efficacy and safety of a product builds trust with payer constituencies and is a fundamental chapter to the product story.
  • Applicability to a specific patient population. The customized evaluation of therapeutic benefit and clinical effectiveness within specific populations can be highly effective in budget negotiations as outcomes data becomes a critical imperative for manufacturers in a value-driven healthcare environment.
  • Flexibility. Flexibility in a global marketplace is the ultimate benefit. A budget impact model must be adaptable to the needs of various Health Technology Assessment (HTA) organizations, multiple languages and currency systems in order to present an economic rationale that is customized at a local level with the necessary reach in a global launch.


The end result: A compelling economic value story, dynamically told

There will always be new therapies and therapeutic alternatives. By preparing for the inevitability of competition with a budget impact model, manufacturers can be equipped with the economic evidence they need to confidently satisfy unique payer demands and give their product the best chance of success in a crowded and ever-changing market. They can also ensure their teams have the tools necessary to tell a compelling economic value story that can be flexibly applied for health authorities, reimbursement agencies, and other decision makers across the globe. A compelling economic value story, dynamically told - in this value-driven market, has never been more important than it is today.
 
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