Pharma APMs: A learning curve awaits you, pharma

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By Maggie Alston, Bruce S. Pyenson | 02 October 2018

As pharmaceutical manufacturers face increasing public pressure over prices and value, we believe the advantages of pharmaceutical alternative payment models (APMs) will be increasingly attractive to both pharmaceutical manufacturers and insurers. But pharmaceutical APMs are more nuanced and resource intensive than the traditional fee-for-service contracts that pharmaceutical manufacturers negotiate with payers. There are some valuable lessons for pharmaceutical manufacturers in provider APMs, but whether pharmaceutical APMs succeed or fail will depend on finding solutions to operational and logistical challenges—some of which are unique to the pharmaceutical industry.

This article was originally published by Managed Care.

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Read part 1: Pharma APMs: Can the industry learn to play well with others?