Outcomes-Based Pharmaceutical Contracts: An Answer to High U.S. Drug Spending?

Pharmaceutical manufacturers and some private payers are increasingly adopting outcomes-based contracts for high-cost brand-name drugs, but their ability to curb spending is questionable due to limited applicability across drug types and a lack of meaningful metrics for evaluation, with no evidence demonstrating reduced spending or improved quality to date. The authors recommend voluntary testing and rigorous evaluation of outcomes-based contracts within Medicare and Medicaid programs to better understand the potential of this emerging model.