| Impact of Certificate of Need on Health Posted: 19 Aug 2021 10:01 AM PDT An interesting paper from Kevin Chiu in the Journal of Health Economics looks at the relationship between certificate of need laws and health outcomes: Certificate of need (CON) regulations requires that health care providers obtain state approval before offering a new service or expanding existing facilities. The purported goal of CON regulations is to reduce health care costs by generating regional economies of scale and reducing redundant investments resulting from excessive competition. Critics of CON regulations note that the regulatory environment increases the costs of expansion and may incentivize health care providers to forgo capital investment, which can have a negative effect on health outcomes. To estimate the net effect of CON regulations, I use a border discontinuity design to measure within-regional heart attack mortality spanning 1968 to 1982. I estimate that CON regulations led to an increase in heart attack deaths, by 6%-10%, three years after the policy was enacted.
You can read the whole article here.  |
| Biden brings plan for prescription drug pricing reform to Congress Posted: 18 Aug 2021 03:39 PM PDT That is the title of an article published in Pharmaceutical Technology today. I am quoted extensively. For instance, President Biden proposes to cap drug prices at genera rates of inflation. The article highlights some limits this would pose to value-based pricing that could evolve over time: Shafrin also says while Biden's plan to penalise companies that increase drug prices may sound like a good idea, it "removes flexibility" when it comes to pricing drugs based on how valuable they are.
"For instance, some researchers have called for the use of a three-part pricing model whereby drugs with uncertain efficacy – for example, perhaps due to use of surrogate trial endpoints – start with a relatively low price," he explains. "If real-world evidence of subsequent clinical trials show that the drug is in fact very effective, the price would rise. Once the drug loses its exclusivity period and generics enter, the price would fall again.
"However, these types of creative pricing arrangements linking price to evolving evidence on value would be effectively stymied by the Biden administration's proposed price controls."
Do read the entire article here.  |
No comments:
Post a Comment