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Pay-for-Performance in the US: What Could Work, What Won't

Executive Summary

In theory, pay-for-performance (P4P) contracts could be highly desirable tools to address shifting dynamics of the pharma market, but, in practice, they’re likely to remain rare because they’re expensive and complicated to implement. Two recent, high-profile collaborations between pharma companies and payors in the US highlight growing interest in P4P arrangements, but experts are divided over whether they can be widely emulated.

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