Health

Value-based Healthcare in Germany: From free price-setting to a regulated market

September 09, 2015

Global

September 09, 2015

Global
Martin Koehring

Senior Manager for Sustainability, Climate Change and Natural Resources & Head of the World Ocean Initiative

Martin Koehring is senior manager for sustainability, climate change and natural resources at (part of The Economist Group). He leads Economist Impact's sustainability-related policy and thought leadership projects in the EMEA region. He is also the head of the, inspiring bold thinking, new partnerships and the most effective action to build a sustainable ocean economy.

He is a member of the Advisory Committee for the UN Environment Programme’s Global Environment Outlook for Business and is a faculty member in the Food & Sustainability Certificate Program provided by the European Institute for Innovation and Sustainability.

His previous roles at The Economist Group, where he has been since 2011, include managing editor, global health lead and Europe editor at The Economist Intelligence Unit.

He earned a bachelor of economic and social studies in international relations from Aberystwyth University and a master’s degree in diplomacy and international relations from the College of Europe.

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This report looks at the evolution of health technology assessment and pharmaceutical pricing reform in Germany and examines the new focus on providers and health outcomes.

Value-based healthcare in Germany: From free price-setting to a regulated market is a report by The Economist Intelligence Unit (EIU), commissioned by Gilead Sciences. It looks at the evolution of health technology assessment and pharmaceutical pricing reform in Germany and examines the new focus on providers and health outcomes.

“The term ‘value-based healthcare’ doesn’t translate well into German,” says Dr Clemens Guth, executive director of Artemed, a private hospital and nursing-home operator in Germany, and co-author of a book on value-based healthcare in Germany with Michael Porter, a Harvard University professor who coined the term. Value-based healthcare looks at health outcomes of treatment relative to cost.

Nevertheless, there are signs that the government is trying to evaluate health outcomes. Some of the most controversial reforms in recent years have involved the assessment and pricing of pharmaceutical products, the reverberations of which are still being felt in the German drug market. In 2011 Germany imposed maximum reimbursement prices for all new reimbursable treatments following the assessment of their added therapeutic value. This put an end to the free pricing era in Germany.

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