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  • American Journal of Managed Care

A Blueprint for Pharmacy Benefits Managers to Increase Value

By: William Shrank, Michael E. Porter, Sachin H. Jain and Niteesh K. Choudhary
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Abstract

Pharmacy benefits managers (PBMs) have a unique opportunity to promote public health and generate value in the healthcare system. However, PBMs are largely evaluated on their ability to control costs rather than improve health. PBMs should be evaluated along three dimensions in which they can increase value: 1) the use of cost-effective medications, 2) the timely initiation of appropriate medications, and 3) adherence to those medications. Value promotion requires the development of integrated data systems, stronger partnerships with patients and physicians and improved measurement and reporting of results. Incentives for PBMs to promote value should drive innovation and improve health outcomes.

Keywords

Opportunities; Health; System; Cost Management; Partners and Partnerships; Motivation and Incentives; Value; Innovation and Invention; Performance Effectiveness; Health Industry; Pharmaceutical Industry

Citation

Shrank, William, Michael E. Porter, Sachin H. Jain, and Niteesh K. Choudhary. "A Blueprint for Pharmacy Benefits Managers to Increase Value." American Journal of Managed Care 15, no. 2 (February 2009).
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About The Author

Michael E. Porter

Strategy
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