value-based pricing


Also found in: Financial, Acronyms, Wikipedia.

value-based pricing

A drug-pricing system to be introduced in the UK, which aims to price drugs according to the value they deliver to the patients. The system will only apply to the new branded (i.e., non-generic) drugs and will provide a series of maximum allowable prices based on the burden of the illness being treated, the social impact of the treatment, and whether the product is innovative enough to justify the cost.
References in periodicals archive ?
Value-based pricing only works if how the program delivers value is evident to the potential attendees.
The goal of value-based pricing is to align the price of the product with the total value it delivers to the buyer.
The crux of the problem in value-based pricing is that the definition of "value" can be subjective.
Several countries ( including Sweden, Australia and Canada ( have already introduced successful value-based pricing systems.
From the employer's perspective, value-based pricing models are attractive because if utilization is low or average, the cost for the EAP will be less than that of others bidding on the contract.
Its study recommends that the PPRS, where companies are free to set the initial prices of drugs but have a maximum level of profits they can earn, is replaced with a 'patient-focused, value-based pricing scheme'.
Portal's industry-leading customer management and billing platform supports real-time authorization and authentication for wireless services with flexible, sophisticated rating capabilities to enable value-based pricing.
The UK's government price control agency, NICE, reduced drug prices through value-based pricing and risk-sharing agreements.
While at Golden Stone, Thorpe provided consulting support to InScope Health, where she led sales execution and business development, introduced a new pricing model and CRM solution, created a message platform for core offerings, and structured value-based pricing arrangements.
Implementing a best practice approach to value-based pricing
Prior to joining Revenue Analytics, Purcell served a variety of roles in Strategy Consulting and was responsible for managing multiple teams of business experts, project managers, and technical experts for Fortune 500 companies with respect to value-based pricing, pricing analytics, pricing execution, and other performance strategies.
Next generation value added services are founded on value-based pricing models, and include new business models that subsidize or reallocate service costs to other entities (e.