title: Sharing risk between payer and provider by leasing health technologies: an affordable and effective reimbursement strategy for innovative technologies?
abstract: The challenge of implementing high-cost innovative technologies in health care systems operating under significant budgetary pressure has led to a radical shift in the health technology reimbursement landscape. New reimbursement strategies attempt to reduce the risk of making the wrong decision, that is, paying for a technology that is not good value for the health care system, while promoting the adoption of innovative technologies into clinical practice. The remaining risk, however, is not shared between the manufacturer and the health care payer at the individual purchase level; it continues to be passed from the manufacturer to the payer at the time of purchase. In this article, we propose a health technology payment strategy-technology leasing reimbursement scheme-that allows the sharing of risk between the manufacturer and the payer: the replacing of up-front payments with a stream of payments spread over the expected duration of benefit from the technology, subject to the technology delivering the claimed health benefit. Using trastuzumab (Herceptin) in early breast cancer as an exemplar technology, we show how a technology leasing reimbursement scheme not only reduces the total budgetary impact of the innovative technology but also truly shares risk between the manufacturer and the health care system, while reducing the value of further research and thus promoting the rapid adoption of innovative technologies into clinical practice.
authors: Health Systems, School of Population Health, University of Auckland, Auckland, New Zealand.
authors: Richard
authors: R
authors: Edlin
authors: Academic Unit of Health Economics, LIHS, University of Leeds, Leeds, UK.
authors: Peter
authors: P
authors: Hall
authors: Department of Emergency Medicine, School of Community Medicine, University of Alberta, Edmonton, AB, Canada.
authors: Klemens
authors: K
authors: Wallner
authors: Department of Emergency Medicine, School of Community Medicine, University of Alberta, Edmonton, AB, Canada. Electronic address: mccabe1@ualberta.ca.
authors: Christopher
authors: C
authors: McCabe
mesh_terms: D061067:Antibodies, Monoclonal, Humanized / Q000191:economics; D000970:Antineoplastic Agents / Q000191:economics; D020811:Biomedical Technology / Q000191:economics*; D003362:Cost-Benefit Analysis; D004059:Diffusion of Innovation; D006801:Humans; D007860:Leasing, Property / Q000191:economics*; D012051:Reimbursement Mechanisms; D020414:Risk Sharing, Financial / Q000191:economics*; D013997:Time Factors; D000068878:Trastuzumab
chemical_list: D061067:Antibodies, Monoclonal, Humanized; D000970:Antineoplastic Agents; D000068878:Trastuzumab
keywords: cost effectiveness; decision uncertainty; risk; value-based pricing