Health Care Researchers Publish on the Implications of New Provider Payment Models for Innovative Medical Technology

October 16, 2014

Analysis Group Senior Advisor Genia Long and Vice President Richard Mortimer published a peer-reviewed study examining the implications of new provider payment models and evidence requirements that are being used by a growing number of private insurers. The study, "Evolving Provider Payment Models and Patient Access to Innovative Medical Technology" (Journal of Medical Economics, October 8, 2014), which was funded by the Advanced Medical Technology Association (AdvaMed), examines "the evolving use and expected impact of pay-for-performance (P4P) and risk-based provider reimbursement on patient access to innovative medical technology." Based on information gathered from structured interviews with nine leading private insurers that represent more than 110 million lives, the study found that the use of P4P models and risk-sharing programs has risen and is expected to continue to rise in the near term.

The study suggests that the increased provider financial pressure associated with these payment models could have unintended consequences. The study notes that increased use of P4P and risk-sharing payment models could challenge established medical technology adoption modes, in which "payers assumed a 'gatekeeping' role and providers a countervailing patient advocacy role with regard to access to new technology. Increased provider financial risk may result in an additional hurdle to the adoption of new technology, rather than substitution of provider- for payer-based gatekeeping."

The study has received press coverage in several outlets, including Forbes and Bloomberg BNA's Life Sciences Law & Industry Report.

Read the study abstract

Read the AdvaMed press release