IDEAS home Printed from https://ideas.repec.org/p/lee/wpaper/1302.html
   My bibliography  Save this paper

Leasing health technologies- an affordable and effective reimbursement strategy for innovative technologies?

Author

Listed:
  • Christopher McCabe

    () (Department of Emergency Medicine, School of Community Medicine, University of Alberta, Edmonton, Canada)

  • Richard Edlin

    (Health Systems, School of Population Health, University of Auckland, New Zealand)

  • Peter Hall

    (Academic Unit of Health Economics, LIHS, University of Leeds)

  • Klemens Wallner

    (Department of Emergency Medicine, School of Community Medicine, University of Alberta, Edmonton, Canada)

Abstract

The challenge of implementing high cost innovative technologies in health care systems operating under significant budgetary pressure has seen a radical shift in the health technology reimbursement landscape. New reimbursement strategies attempt to reduce the risk of making the wrong decision; i.e. paying for a technology that is not good value for the health care system, whilst promoting the adoption of innovative technologies into clinical practice. However, the remaining risk 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 paper we propose a health technology payment strategy – Technology Leasing Reimbursement Scheme (TLRS) - which allows the sharing of risk between the manufacturer and the payer; the replacing of upfront payments with a stream of payments spread over the expected duration 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 TLRS not only reduces the total budgetary impact of the innovative technology, it also truly shares risk between the manufacturer and the health care system, whilst reducing the value of further research and thus promoting the rapid adoption of innovative technologies into clinical practice.

Suggested Citation

  • Christopher McCabe & Richard Edlin & Peter Hall & Klemens Wallner, 2013. "Leasing health technologies- an affordable and effective reimbursement strategy for innovative technologies?," Working Papers 1302, Academic Unit of Health Economics, Leeds Institute of Health Sciences, University of Leeds.
  • Handle: RePEc:lee:wpaper:1302
    as

    Download full text from publisher

    File URL: http://medhealth.leeds.ac.uk/download/236/auhe_wp13_02
    File Function: First version, 2013
    Download Restriction: Final version published in Value in Health, volume 17, issue 4, June 2014, Pages 438–444. DOI: 10.1016/j.jval.2014.01.010

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Peter Hall & Claire Hulme & Christopher McCabe & Yemi Oluboyede & Jeff Round & David A Cameron, 2010. "Updated cost-effectiveness analysis of trastuzumab for early breast cancer:A UK perspective considering long-term toxicity and pattern of recurrence," Working Papers 1001, Academic Unit of Health Economics, Leeds Institute of Health Sciences, University of Leeds.
    2. McCabe, C & Claxton, K & Culyer, AJ, 2008. "The NICE Cost-Effectiveness Threshold: What it is and What that Means," MPRA Paper 26466, University Library of Munich, Germany.
    3. Christopher McCabe & Richard Edlin & Peter Hall, 2013. "Navigating Time and Uncertainty in Health Technology Appraisal: Would a Map Help?," PharmacoEconomics, Springer, vol. 31(9), pages 731-737, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aidan Hollis, 2016. "Sustainable Financing of Innovative Therapies: A Review of Approaches," PharmacoEconomics, Springer, vol. 34(10), pages 971-980, October.
    2. Michael Drummond, 2015. "When do performance-based risk-sharing arrangements make sense?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(6), pages 569-571, July.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lee:wpaper:1302. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Judy Wright). General contact details of provider: http://edirc.repec.org/data/heleeuk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.