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In a time when the country feels more politically divided than ever, there is broad consensus that Medicare should be allowed to negotiate prescription drug prices directly with drug makers, and that the FDA should expedite approvals of generic cancer drugs to lower patients’ out-of-pocket costs.
As the Centers for Medicare & Medicaid Services (CMS) promotes the transition of medical payments from volume to value, advanced Alternative Payment Models (APMs), which provide added incentives to clinicians to deliver high-quality and cost-efficient care, look to play an expanded role in the future.
As the healthcare system transitions from volume-based to value-based reimbursement, the question concerning industry is, “How will emerging payment models influence revenue?” The answer may not please the manufacturers of cancer drugs.