Pricing and Reimbursement: Towards a Holistic Approach

Abstract

As health care systems are continuously fragmenting into diversified care models with underlying specific cost models, pricing and reimbursement is becoming an increasingly complex issue for drug companies. The main challenge is to incorporate a payor's perspective into price calculation while pinpointing the adequate product value. This paper describes the situation in Germany and proposes a multi-dimensional model enabling companies to create a decision algorithm leading to more precise individual pricing and thus a stronger position in reimbursement negotiations.