In the latest post in our ongoing series with Health Affairs blog, Soeren Mattke takes on the relationship value assessment and innovation of new therapies. He argues that cost-effectiveness analysis, one of the most common methods for economic assessments, may be distorting the incentives for investment in medical research and drug development. Specifically, he explains that because cost-effectiveness approaches compare therapies to the current standard of care, their application in value-focused access and coverage decisions may incentivize innovators to focus investment in areas where cost is already high. This, he argues, drives up healthcare spending while disincentivizing innovation in areas where medical advances are most needed.
Read the full article here.
Soeren Mattke, MD, DSc, is a research professor of economics at the University of Southern California and the director of the Center for Improving Chronic Illness Care.