Standard ways of reimbursing for innovations can create disincentives for the development of high-value innovations in health care. One remedy is the development of “Netflix-like” subscription models that entail paying a subscription fee for access to drugs and treatments. Such models are already in use in the United Kingdom, Australia, and Sweden.
Could a Subscription Model Spur Innovation in U.S. Health Care?
A new pricing model may help providers develop new treatments and improve access for patients.
May 09, 2023
Summary.
The current reimbursement system in the United States discourages some forms of innovations in health care. The development of new antibiotics that aren’t needed now but could be down the road are a case in point. A subscription-based pricing model could address this problem.
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Innovation and Creativity. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Unlock your team's curiosity and willingness to take smart risks.