BALANCING COMMERCIAL CONFIDENTIALITY WITH ACCOUNTABILITY- A PROPOSAL FOR ENHANCED DISCLOSURE OF COST-EFFECTIVENESS DECISIONS

Author(s)

O'Mahony JF
Trinity College Dublin, Dublin, Ireland

PURPOSE: To propose two new reporting conventions regarding cost-effectiveness evidence that would enhance accountability in the allocation of scarce healthcare resources, while preserving commercial confidentiality regarding the price of specific products. BACKGROUND: The negotiated prices for new drugs are often not disclosed in the interest of commercial confidentiality. Keeping prices confidential helps manufacturers pursue separate pricing strategies in different markets. An unfortunate consequence of price confidentiality is that it hampers transparency in the allocation of healthcare resources. The absence of published prices makes it difficult to assess how closely decision makers adhere to efficient spending policies. This compromises the accountability of decision makers’ funding choices, which may result in more spending on cost-ineffective treatments than would otherwise be the case. PROPOSALS: The first proposed convention is that decision makers publish an annual review of funding approvals made over the previous year that reports a histogram showing the distribution of incremental cost-effectiveness ratios (ICERs) of the funded interventions. The histogram bins could be at various fractions of the cost-effectiveness threshold such as 0.5, 1, 1.5, 2 and so on. This would allow analysts understand how many interventions are being approved above and below the threshold without disclosing the price or ICER of any individual product. The second proposal is that an aggregated cost-effectiveness ratio is published annually, which aggregates the incremental cost and effects of all products approved over the previous year. Again, this would provide some quantification of the efficiency of funding approvals without disclosing sensitive information on any specific product. CONCLUSIONS: Our proposals provide a simple way to enhance accountability in resource allocation without compromising commercial confidentiality. In principle, the proposed measures have only modest data requirements and there can be little reason to oppose their introduction.

Conference/Value in Health Info

2016-10, ISPOR Europe 2016, Vienna, Austria

Value in Health, Vol. 19, No. 7 (November 2016)

Code

PHP370

Topic

Health Policy & Regulatory

Disease

Multiple Diseases

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