Pricing Treatments Cost-Effectively when They Have Multiple Indications: Not Just a Simple Threshold Analysis.

ABSTRACT:

Background

Economic evaluations of treatments increasingly employ price-threshold analyses. When a treatment has multiple indications, standard price-threshold analyses can be overly simplistic. We examine how rules governing indication-specific prices and reimbursement decisions affect value-based price analyses.

Methods

We analyze a 2-stage game between 2 players: the therapy's manufacturer and the payer purchasing it for patients. First, the manufacturer selects a price(s) that may be indication specific. Then, the payer decides whether to provide reimbursement at the offered price(s). We assume known indication-specific demand. The manufacturer seeks to maximize profit. The payer seeks to maximize total population incremental net monetary benefit and will not pay more th

SUBMITTER: Goldhaber-Fiebert JD 

PROVIDER: S-EPMC10625719 | biostudies-literature | 2023 Oct-Nov

REPOSITORIES: biostudies-literature