Challenges in Reimbursement Hamper Development of Novel Diagnostics
WASHINGTON, D.C. (Thursday, January 06, 2011) - The Biotechnology Industry Organization (BIO) released today a report by Health Advances on the limitations of the nation’s reimbursement system for novel diagnostics and the impact of these limitations. The report also catalogs potential reforms that have been proposed by an array of stakeholders.
The report found that significant limitations in the current reimbursement system for novel diagnostics lead to inconsistent coverage decisions and impede the investment necessary for the development of the next generation of diagnostics. These limitations reduce patient access to novel diagnostics and, ultimately, to personalized medicine.
“Novel diagnostics hold great promise as tools that allow physicians to differentiate patient-specific characteristics, design personalized treatment approaches, and ultimately improve patient outcomes. It is critical to identify barriers to the development and utilization of these innovative products in order to overcome them,” stated Kristin Pothier, a partner at Health Advances and co-author of the report. Health Advances urges stakeholders to “take action and begin the reform process for the greater medical and economic good.”
“Novel diagnostics form the foundation of personalized medicine. At this time in our nation’s mandate to reform healthcare delivery, stakeholders have a vital responsibility to patients and to society to advance personalized medicine, beginning with reforming the reimbursement system for novel diagnostics,” stated Sara Radcliffe, Executive Vice President of Health at BIO.
The report, entitled, “The Reimbursement Landscape for Novel Diagnostics: Current Limitations. Real-World Impact, and Proposed Solutions”, is now available.
About Health Advances
Health Advances is a global strategy firm focusing entirely on the development of commercialization strategies for products and services for the healthcare industry, including diagnostics, devices, therapeutics, and life sciences. The Health Advances Diagnostics Practice works with senior management teams and investors from small start-up companies to the largest core lab consolidators in the industry to help develop their product commercialization strategies and associated R&D, sales and marketing, partnering strategies, and overall corporate investment decisions. In addition, Health Advances performs diligence for venture capital firms, private equity firms and diagnostic/life science tools companies, evaluating and advising on potential transactions, novel technologies, and benefits and risks to the industry. For more information about Health Advances, please visit www.healthadvances.com.