Category: Blog

Avalon Health Economics at the 20th Annual European Conference of ISPOR
October 1, 2017 - 3:59 pm, by , in Blog, Spotlight
In our work in health economics and outcomes research (HEOR) for the life sciences, including biotechnology, pharmaceuticals, and medical devices, we must maintain close ties with our colleagues and stay up to date with the latest thinking on methods of technology assessment, trends in coverage decisions, and relevant changes in the policy and economic environment...
The Value of Biopharmaceutical Innovation in the U.S.
February 22, 2017 - 3:55 pm, by , in Blog, Spotlight
There have been some negative reports recently regarding the pricing practices of some pharmaceutical companies. However, it is important to give at least equal consideration to the value derived from the intensive level of research and development undertaken by the biopharmaceutical industry in the U.S. The invention of new products and processes has been shown...
The Evolving Landscape of U.S. Payer Coverage Decisions: The Role of Health Economics and Outcomes Research
December 7, 2016 - 3:37 pm, by , in Blog, Spotlight
Although there are a large number of public and private payers in the U.S., medical device and pharmaceutical manufacturers generally focus on two types of payers: (1) Medicare, which is administered by the Centers for Medicare and Medicaid Services (CMS) and covers individuals ages ≥ 65; and (2) private commercial payers (e.g., Blue Cross and...
Will an Unravelling of the Affordable Care Act Result in Meaningful Organizational Changes in U.S. Medical Care? Implications for Economic Evaluation of Drugs & Devices
December 6, 2016 - 3:34 pm, by , in Blog
In recent years, there has been a shift in U.S. health care markets to a broader, population-based perspective when assessing the costs and benefits of medical innovation. Cost effectiveness analysis and budget impact analysis results can look quite different when viewed from the perspective of a health system or an accountable care organization, and can...
Medical Device Economics and the Health System Purchaser in the Era of Novel Payment Mechanisms
May 31, 2016 - 3:29 pm, by , in Blog
Hospitals in the U.S. spend an estimated 40% of their annual budgets on supplies, medical devices and equipment alone.[1, 2] According to the American Hospital Association, in 2015 total expenditures by U.S. hospitals was $808 billion.[3] That implies that if the 40% supply and equipment estimate is correct, hospitals are spending more than $320 billion...
Value-Based Payment for Oncology Services
March 7, 2016 - 3:26 pm, by , in Blog
Cancer care is a large part of overall health care expenditures. Of the approximately 18% of U.S. gross domestic product spent on healthcare, more than 5% is attributed to cancer treatments.[1] Considering the premature mortality associated with cancer, the humanistic and economic toll is enormous. Consequently, in recent years there has been increasing attention devoted...
Why Medical Device Companies Need to Develop Economic Evidence in the U.S.
January 14, 2016 - 3:24 pm, by , in Blog
Although the U.S. lacks a centralized health technology evaluation agency, as many of the European countries maintain, in recent years there has been considerable pressure to control the rising costs of new biopharmaceuticals and medical devices.[1-5] After relatively slow growth in the 1960s, U.S. health care expenditures grew intensely in the decades between 1980 and...
Reference Pricing for in vivo and in vitro Diagnostic Tests
November 16, 2015 - 3:20 pm, by , in Blog
Prices in health care vary widely even within the same local market and for similar tests and treatments. This reflects differences among providers in their ability and willingness to leverage bargaining power against private insurers. For their part, consumers and patients often have been indifferent to price since they have been well covered by insurance....
Purchasing Medical Innovation: The Implications for the Medical Device Industry
October 13, 2015 - 3:17 pm, by , in Blog
In an earlier blog, we reviewed the recent book by one of Avalon’s directors, James Robinson. Robinson’s book, entitled “Purchasing Medical Innovation: The Right Technology, for the Right Patient, at the Right Price” seeks to unpack the often precarious relationships among medical device makers, the purchasers of those devices, the insurers, who are often the...
Physician Shortages in the U.S.: Disentangling Myth, Folklore, and Fact
September 14, 2015 - 3:14 pm, by , in Blog
Much of the public media and even a substantial part of the medical literature operates on the assumption that there is a shortage of physicians in the U.S., including those specializing in primary care, intensive care, and surgery. One study, for example, estimated that the physician shortfall in the U.S. would reach 90,000 by 2025.[1]...