The Economics of Value-Based Pricing
Panel
Panel 6: Drug Cost and Access III
Moderator
Keith Hatschek, Professor and Program Director for Music Management and Music Industry Studies, University of the Pacific, Conservatory of Music
Description
Value-based pricing for prescription drugs has become a widespread strategy in the United States and abroad. However, there are different interpretations of what this entails. Variations of valuedbased pricing for pharmaceuticals will be discussed as well as how these approaches affect economic welfare. Efficiency is considered recognizing that value-based approaches reduce expenditures where marginal cost exceeds marginal benefit. Equity is also considered and valued-based pricing will be shown to favor producers over consumers. This helps explain why value-based pricing is so acceptable to industry. Concern about excessive health expenditures is expected to lead to alternative strategies in the future.
Location
Pacific McGeorge School of Law, Lecture Hall, 3200 Fifth Ave., Sacramento, CA
The Economics of Value-Based Pricing
Pacific McGeorge School of Law, Lecture Hall, 3200 Fifth Ave., Sacramento, CA
Value-based pricing for prescription drugs has become a widespread strategy in the United States and abroad. However, there are different interpretations of what this entails. Variations of valuedbased pricing for pharmaceuticals will be discussed as well as how these approaches affect economic welfare. Efficiency is considered recognizing that value-based approaches reduce expenditures where marginal cost exceeds marginal benefit. Equity is also considered and valued-based pricing will be shown to favor producers over consumers. This helps explain why value-based pricing is so acceptable to industry. Concern about excessive health expenditures is expected to lead to alternative strategies in the future.
Speaker Bio
Peter Hilsenrath earned a Ph.D. in economics from the University of Texas at Austin. During the 1980s, Peter Hilsenrath held appointments in the Economics Department at the University of the Witwatersrand in Johannesburg and with the Center for Naval Analyses in Alexandria, Virginia. Professor Hilsenrath was with the Department of Health Management and Policy at the University of Iowa from 1989 to 2000 and during that time, spent a year, from 1995 to 1996, as Chief Economist at Syfrets Managed Assets in Cape Town. He later served as founding chair of the Department of Health Management and Policy at the University of North Texas Health Science Center in Fort Worth. He has held the Joseph M. Long Chair in Healthcare Management at the University of the Pacific since 2009. Dr. Hilsenrath has published over 100 journal articles, technical reports and newspaper contributions on a variety of topics in management, health and the social sciences.