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Innovative Payment Models for Gene Therapies


Kimberly C. Chen, DO, MSHLM, discusses subscription models and warranties for cell and gene therapies, exploring their impact on patient access and financial sustainability.

This is a video synopsis/summary of a Peer Exchange involving Ryan Haumschild, PharmD, MS, MBA; Jessica Nance, MD, MS; Kimberly C. Chen, DO, MSHLM; Emma Ciafaloni, MD, FAAN; and Mary Pak, MD, FACP.

Haumschild delves into alternative payment models like subscription plans and warranties with Chen, examining their potential to enhance patient access and ensure financial viability for cell and gene therapies. Chen explains how subscription models offer predictability for payers and enable cost sharing among stakeholders, while warranties function similarly to product warranties, ensuring therapy effectiveness. However, concerns about budget constraints and legal adjustments accompany subscription models. Chen also outlines performance-based contracts, annuity models, and outcome-based payments as additional strategies. These approaches shift financial risk and incentivize positive treatment outcomes, fostering innovative solutions to afford costly therapies. As the discussion concludes, the focus remains on optimizing patient care while navigating the complexities of financing advanced medical treatments.

Video synopsis is AI-generated and reviewed by AJMC® editorial staff.

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