Health Care Update - November 2015 #3

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Drug Pricing Issues Heat Up Following HHS Forum -

Last week, the Department of Health and Human Services (HHS) hosted a forum on prescription drug costs which featured players from every corner of the industry, including top government officials. HHS Secretary Sylvia Mathews Burwell kicked off the event by calling for greater support for innovation, access, and affordability when it comes to prescription drugs.

There seemed to be agreement that value-based contracting – payments based on the value of care delivered – should be increased across health care delivery. However, the topic of value and how it should be defined remains a barrier to this idea moving forward. Ken Frazier, Chairman and CEO of Merck, stated that different constituencies define value in different ways, making the identification of positive outcomes more challenging. Acting CMS Administrator Andy Slavitt stated that an open dialogue is needed and a shared set of facts is critical to ensuring innovation in the industry.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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