THE INCREASING NEED FOR REAL-WORLD EVIDENCE
Global trends in demographics, politics, and public health are ushering in an economic “moment of truth” for the healthcare and life sciences industry. Last year, the growth in biotechnology R&D expenditures to discover and develop new therapies for ever-more-niche indications and diseases outpaced industry revenue growth by a factor of ten. Today, an increase in development costs is pushing life sciences businesses to price new therapies at a premium, which clashes with public policies focused on decreasing the total cost of care.
Value-based agreements (VBAs), in which healthcare providers and pharmaceutical manufacturers receive payment tied to successful patient outcomes, are one mechanism that can help reconcile the divergence between industry cost structures and healthcare affordability.
New cloud computing technologies are driving value-based healthcare collaborations from data collection and analysis to data sharing.