As a result of increasing budget constraints, payers and providers are now looking beyond simply cost towards the value of their purchasing decisions. To facilitate these types of pricing negotiations, the life sciences industry has started utilizing a wide range of innovative contracting strategies based on modalities such as product performance, patient outcomes, portfolio options, or payment term flexibility.
The underlying complexity of these arrangements demanded the use of mobile tools to present the terms and results ‘on the fly’ during engagements in an efficient, transparent, and easy-to-understand way. Often, these tools would be developed to focus on a specific contracting approach, such as an outcomes-based agreement or a payment term arrangement. However, with the increase in popularity of these tools, payer conversations have evolved to now compare multiple contracting options at once in order to achieve higher goals like maximizing patient access.
The ability to elevate payer discussions beyond cost and towards access to medicines and treatments through the use of technology is a significant achievement that has been brought about in less than a decade. However, in a practical sense, this raises a new set of issues for the users and developers of mobile contracting tools.
With a number of separate mobile tools in use during a single engagement, it becomes hard to juggle the different options under consideration. Switching between tools can lead to confusion, a loss in momentum, and a lack of consistency, both logically and visually. When using multiple tools, it’s not possible to reaffirm the various complex custom arrangements under consideration without jumping between tools. Ideally, the results of the various options would be summarized all on a single page. Furthermore, splitting the conversation between various tools disconnects the analyses from the value story and messaging. Therefore, in order to maximize the possibility of closing, being able to maintain strong value communication principles is required. What is needed is a hybrid contracting tool that combines the best features of multiple tools in one.
Working in conjunction with contracting experts as part of Certara’s Evidence & Access group, we’ve developed a contracting tool using BaseCase software that includes a full spectrum of contracting agreements, including both traditional and innovative tools.
This new hybrid tool allows presenters to easily navigate between contracting methods using tabs and dropdowns. This allows for the comparison of summary results between methods and also against competitor treatments.
Having multiple tools in one app allows results to integrate within a unified value story to provide a range of comparable value messages. Also, by design, outputs can be tailored to focus on emphasizing higher goals such as patient access. Finally, a full breakdown of the agreements are available in-app, as a PDF download, or as an attachment within an auto-generated email.
With such a tool, presenters now have an unprecedented level of flexibility and the support to find the best arrangement for all parties.
Read more about hybrid contracting tools along with other innovative pricing tools in our guide, 3 common contracting tools for market access: