Technology-Pharmaceutical Alliance Promotes Outcomes-Based Contracts

As outcomes-based contracting becomes more important, companies are aligning to promote the payment model.

Technology company Inovalon and pharmaceutical manufacturer Boehringer Ingelhieim Pharmaceuticals recently created an agreement that will support outcomes-based contracting. This collaboration will also include support from Avalere Health through Inovalon, and the Boehringer diabetes alliance with Eli Lilly and Company.

The new agreement uses the healthcare capabilities and integrated platform from Inovalon and Avalere to support insight, data integration, and analytics, along with integrated provider and patient intervention capabilities, according to a press release from Inovalon. These advances will support outcomes-based contracting and improve real world practices, which will then improve patient outcomes, the release noted.

Healthcare is largely transforming from a fee-for-service model to an outcomes- or value-based system, largely due to the efforts made by the US Centers for Medicare and Medicaid Services (CMS). Under the Obama Administration, the CMS experimented with various payment models to determine the most beneficial model to improve patient outcomes while reducing overall costs.

“The Boehringer Ingelheim and Lilly diabetes alliance is committed to innovation through the discovery and development of treatment options where unmet needs exist, as illustrated by the breakthrough evidence from the landmark EMPA-REG OUTCOME® trial which evaluated cardiovascular outcomes in adults with type 2 diabetes,” said Christine Marsh, vice president, Market Access at Boehringer Ingelheim Pharmaceuticals, Inc. “We are excited to be working with the combined capabilities of Inovalon and Avalere, and believe that they will support us in our goal of translating clinical outcomes into real world practice to ultimately improve patient care.”

A previous survey conducted by Avalere Health in 2015 found that 65% of insurers had high or very high interest in outcomes-based contracts for hepatitis C virus drugs, and 53% had high or very high interest in these contracts for oncology drugs.

While interest in these contracts has been high, few have pursued them, with Express Scripts exploring this type of contract only for inflammatory conditions. Increased collaboration among stakeholders, such as the new partnership between Inovalon and Boehringer Ingelheim, is needed to ensure the success of outcomes-based contracting, according to the release.

“We are very pleased to partner with industry leaders such as Boehringer Ingelheim and Lilly to support their goal of researching, developing and bringing new medications of high therapeutic value to the healthcare community,” said Keith Dunleavy, MD, chief executive officer of Inovalon. “The analytics and data-driven platforms provided by Inovalon and Avalere help to show and achieve the great value of Boehringer Ingelheim and Lilly diabetes alliance’s medications and play an integral role in their strategy. We look forward to advancing their mission and leadership in the marketplace.”

The collaboration will leverage technologies that are being used by more than 100 existing customers with a more holistic approach and integrated support for outcomes-based contracts, according to the press release. This will align the needs of the payer, improve patient outcomes, and reduce costs.

“As the trend toward quality and value-based care models increases, the importance of data-driven insights has never been more essential for success,” said Dan Mendelson, president of Avalere Health. “We look forward to supporting advanced insight into quality outcomes and performance, as well as optimizing outcomes-based contracting initiatives.”