Lee B. Staley
High drug costs leave policymakers wondering whether the United States gets what it pays for from drug manufacturers. Pay for performance is a trending concept in health policy literature, but it has been avoided in the prescription drug market. The legal rationale for such avoidance has not yet been the subject of formal study. This Note first defines the nature of performance-based risksharing arrangements in the pharmaceutical context. These are contractual arrangements whereby payers and manufacturers allow a drug’s price to be determined by its health benefits to individual patients under real-world conditions.