JOURNAL ARTICLE

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.

  • Published In: Harvard Business Review Digital Articles, 2023. P. 1 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Rebitzer, James B.; Rebitzer, Robert S. 3 of 3

Abstract

The article examines the potential of subscription pricing models to stimulate innovation and improve access in U.S. health care, particularly for treatments like new antibiotics and high-cost gene therapies. Subscription models, similar to "Netflix-like" fees, are already used in countries such as the United Kingdom, Australia, and Sweden, and are proposed in the U.S. through legislation like the Pasteur Act to address challenges in developing valuable but underpriced drugs. The authors identify three key factors for successful implementation: clearly defining the model's purpose (either to create valuable treatment options or expand access), exercising negotiation restraint to fairly divide value between innovators and payers, and aligning the model with professional and social norms to gain acceptance among providers and the public. These models aim to harness the U.S.'s innovative capacity to make health care both more effective and affordable.

Additional Information

  • Source:Harvard Business Review Digital Articles. 2023/05, p1
  • Document Type:Article
  • Subject Area:Consumer Health
  • Publication Date:2023
  • Accession Number:163755420

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