Approaches to Discussions on Confidential Pricing Whilst Enabling Analysis of “True” Budget Impact

OBJECTIVES: Budget impact models (BIMs) allow pharmaceutical and medical technology companies to demonstrate the impact of introducing their products to market, using data tailored to decision-makers’ local environment. However, the nature of confidential pricing between competitors means that using published list prices may conceal the true budget impact for healthcare systems. This analysis explores two methods of allowing a more accurate view of localized budget impact, without disclosing confidential pricing agreements.

METHODS: The first method used Excel’s inherent data table functionality. Proportional discounts from the commissioning company for their product are shown along one axis. Competitor products’ discount options are shown along the other axis. The data table shows the budget impact results for all possible combinations, approximating the “true” budget impact according to a set of pre-defined discounts.

The second method utilized an Excel tool with an accompanying online Web Companion. The decision-maker can access a secure, unique web link, generated with their localized inputs from the Excel tool. They can privately apply discounts to view the “true” budget impact, without compromising confidential pricing.

RESULTS: The data table removes the need for decision-makers to enter their discounts into the tool, simply presenting several possible budget impact results across multiple combinations of discounts. However, only two products can be compared, according to pre-defined discounts.

The online Web Companion is a private platform that can compare multiple products. Decision-makers can view the “true” budget impact in private, with the flexibility of price changes.

CONCLUSIONS: These methods of overcoming discussions on confidential pricing are valuable features of BIMs when used by local decision-makers. They allow assessments of the “true” budget implications to healthcare systems whilst maintaining confidential agreements. Web Companions compare “true” impacts across multiple products, while data tables in Excel are a simpler approach to compare only two products.