Academic Literature

Reforming the Payment System for Medical Oncology

Infusion of chemotherapy has long been a profit center for medical oncologists. Here are various approaches to cancer drug payment reform, and their strengths and weaknesses.
Originally published on 07/17/2013 in JAMA Viewpoint

Infusion of chemotherapy has long been a profit center for medical oncologists.

Under the current system, oncologists purchase cancer drugs at one price, then bill insurers at a higher price after they administer the drugs. However, the profits available to oncologists from this practice have been under serious pressure from the pharmaceutical industry and insurers.

https://cdn.jamanetwork.com/ama/content_public/journal/jama/927287/jvp130092t1.png?Expires=2147483647&Signature=jrZ2oE6dDGY4jAtXCwWbIZ7pExRJk95l8LZA2SFo3EnPVNnzsY~S6i9CeJaIVjf~A~7txEbOQTBBxDofiGwXTSiNCQTCF2CZCVvjGixxDl~eyvEpHuPZe7lokPFacDN1T5qjG7dvomDnX2Qg8zty8FLqXAyWVC7d6nkQLYEIiKGFchzS1uTaccIhYQp2no6HBR-0aa66hWESq7RNDiEcmHMK4K9P~Lj2lruUBEe7-ZpnQsw1TBHzEJBHImSzqatz1HIvvcmzpH9ZSR4N3A73bwjTpuNoV44WTtzCWfIp8NMBHk1esWJxKLH9C~h6s4kmlblyLpJvjVYDHuAdE-Bf7g__&Key-Pair-Id=APKAIE5G5CRDK6RD3PGA

Read Full Article Here.

Share

Research & Insights

We conduct non-partisan, independent research, and make our work accessible and informative to policymakers and the general audience alike. Browse our featured research or explore our work by article type.

Pricing in the Market for Anticancer Drugs
What are unique features of the market for anticancer drugs?
Journal of Economic Perspectives 12/01/2015
The Just Price of Cancer Drugs
Not all new drugs for cancer come with vast improvements, yet many share one trait in common: a high price. Oncologists need to be part of the solution.
JCO 10/01/2013
In Cancer Care, Cost Matters
A phenomenally expensive new cancer drug, Zaltrap, was not more clinically effective than existing medicines for colorectal cancer yet it was priced more than twice as high so we refused to offer it.
NYTimes 10/14/2012
The Conflict Between QALYs and Well-Funded Patient Advocacy Groups
The goal of a QALY is to figure out how much any given drug is worth to a society so that we, as a society, have a benchmark to evaluate the price of pharmaceutical products.
Relentless Health Value 12/10/2020
Remdesivir Less Expensive for "Government Programs"? Not So Fast.
Two options are proposed if Gilead wishes to offer the discounts to the full array of government programs.
Drug Pricing Lab 07/01/2020
Blueprints for Indication-Specific Pricing
Several approaches that rewire existing reimbursement conventions as alternatives to facilitate ISP are proposed.
Drug Pricing Lab 05/19/2020
Pharmaceutical Products and Their Value
Steep increases in prices and spending on prescription drugs in the United States have triggered public outrage and questions about their value.
Value in Health 03/29/2020
Drop in Cancer Deaths Reflect Failures of Our Society. Really.
Despite declining cancer death rates, the nation still presents societal failures to improve the state of our population's health.
The Boston Globe 02/21/2020
Dissecting PhRMA's Opposition to H.R. 3 Lower Drug Costs Now…
Dr. Peter Bach responds to PhRMA's stance of opposition to H.R. 3 Lower Drug Costs Now Act of 2019.
STAT News 10/11/2019
Time to Throw in the Towel on Biosimilars
Peter Bach and Mark Trusheim of MIT Sloan School of Management underscore the drawbacks of Washington's preferred solution to introduce competition for biologics, the biosimilar model.
The Wall Street Journal 08/21/2019
Mortgaging New Treatments Kicks the Can on High Drug Prices
The launch price for one-time gene therapy Zolgensma presents various implications.
Morning Consult 07/09/2019
A $475,000 price tag for a new cancer drug: crazy…
Drug Pricing Lab op-ed in STAT News discusses indication-specific pricing of Kymriah.
STAT News 08/31/2017

Featured News

See All News
Forbes 12/03/2015

A Radical Proposal for Bringing Down the Cost of Cancer Drugs

Peter Bach of Memorial Sloan Kettering Cancer Center in New York made headlines back in 2012, when he and his team refused to give their colon cancer patients Zaltrap.
Read Article
Newsletter

Stay up to date on our work and news