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Proceed with caution: an economic perspective on the UK's value based pricing proposals

Dixon, S, Tsuchiya, A, Brazier, J, Stevenson, M, Tappenden, P, Tosh, J and Thokala, P (2011) Proceed with caution: an economic perspective on the UK's value based pricing proposals. Discussion Paper. HEDS Discussion Paper (11/04). (Unpublished)

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Abstract

The shift from the Pharmaceutical Pricing Regulation Scheme to Value Based Pricing (VBP) is an important change in the way that medicines will be priced, and consequently, reimbursed in the United Kingdom. Whilst the opportunity to purchase new medicines based on value to society is one that should be welcomed, we should proceed with caution. We highlight ten issues that should be considered relating to innovation, the role and meaning of funding threshold and the adjustments to reflect burden of illness, therapeutic innovation and improvement and wider societal factors.

Most importantly, the assessment of value should continue to be based on the characteristics of the displaced activities (e.g. the health produced). To a large extent, all that is changing under VBP are the characteristics being considered; weighted health rather than unweighted health. In addition, we should not totally abandon a cost-utility framework for appraisal just because its current formulation does not match the wider perspective now desired by government.

Item Type: Monograph (Discussion Paper)
Academic Units: The University of Sheffield > Faculty of Medicine, Dentistry and Health (Sheffield) > School of Health and Related Research (Sheffield) > Health Economics and Decision Science > HEDS Discussion Paper Series
Depositing User: ScHARR / HEDS (Sheffield)
Date Deposited: 19 Apr 2011 15:37
Last Modified: 08 Feb 2013 17:31
Status: Unpublished
URI: http://eprints.whiterose.ac.uk/id/eprint/42942

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