Novartis, Roche Find 'Outcome-Based' Drug Pricing an Elusive Dream

November 12, 2015

Reuters (Wiegmann, 11/12) reported that Novartis Chief Executive Officer Joe Jimenez, as well as his counterpart at Roche, Severin Schwan, while aspiring to get “insurers to pay more for treatments when they cut overall medical costs …  have been forced to concede that insurance companies, especially in the United States, are not yet ready for such ‘outcome-based’ pricing models.” This is due, in large part, to electronic medical record systems not being “capable of accurately tracking a drug’s role in reducing hospital stays or preventing further trips to the emergency room.”