Value-based contracting is an important aspect of promoting value-based care. One of the main thoughts is whether the organization can add value through care management activities and how this value is accounted for in terms of payment. And how is the value measured? From Magellan`s point of view, there are some objectives for this cooperation. First, to give an exemplary example of the results that can be achieved from innovative collaboration between payers and pharmacists, in order to develop more partnership opportunities in the future and ultimately to find new ways to add value to our customers. Second, to determine whether a high-key program can improve health outcomes in osteoporosis patients, which would allow Magellan and Amgen to use this knowledge to jointly develop a program that can be offered to other payers. Finally, by improving relationships with manufacturers like Amgen, we want to be an innovator in the field of BPV. With regard to value-based contracts, he said, “The biggest risk we see across the country is that health organizations move too fast or don`t move at all.” The expectation of some health systems for proof of positive results to be provided before negotiations on a value-based contract begin often limits the ability to develop and contribute to the design of innovative contract models. There are no models of good practice for the value base, and all health systems differ in size, structure and focus. It will therefore take some time to gain knowledge about which models work most effectively. It`s true. This partnership is not tied to sales contracts. At this point, too, I see the partnership as a discovery and learning laboratory that generates pragmatic resources to move the needle in clinical outcomes and provide insight. What is the value-based contract and why is it important for the introduction of value-based care? Value-based contracts generally include performance-related payments or reimbursements, which are linked to value indicators such as health outcomes, patient effectiveness and quality.
The value contract is an instrument for coordinating incentives between interest groups such as the health system and a supplier, manufacturer, employer or payer. These goals are generally defined in the form of improved patient outcomes, experience and quality of care, improved population health or effectiveness at work. Both organizations look forward to successful cooperation to improve value-based innovation and develop new solutions for patients and health systems. Whenever organizations enter into such a partnership, the due diligence process is important on both sides. You want to make sure that you have the right partners on board and that each partner understands the roles and responsibilities and is properly equipped to meet expectations. For Magellan, it was important to involve Magellan Rx Management`s executives, including representation of Magellan Method, clinical strategy, special strategy, legal, compliance, investor relations, business relations, account management, marketing and government affairs. Magellan Rx Management looks after a large number of clients and it is important to understand the potential impact of a partnership across the entire product portfolio. It is therefore necessary to involve different stakeholders in order to assess the relationship, the desired results and the implementation strategy, in order to ensure internal orientation and transparency.