Panelists discuss how cost-effectiveness analyses of newer therapies like sotatercept show substantial benefits in reducing clinical worsening events and potentially decreasing downstream costs through reduced hospitalizations and transplantations, supporting value-based payment models.
Healthcare Economics and Resource Utilization
PAH represents a serious condition associated with substantial healthcare resource utilization across multiple domains including frequent outpatient visits, emergency department encounters, and prolonged hospitalizations. The REVEAL registry demonstrated high hospitalization frequency with one admission often predicting additional hospitalizations, resulting in stays lasting days to weeks with costs reaching tens to hundreds of thousands of dollars. Additional major cost drivers include lung transplantation and expensive medication regimens.
Early diagnosis and intervention significantly impact healthcare economics by shifting care from expensive inpatient to more manageable outpatient settings and avoiding costly advanced therapies like parenteral prostacyclin infusions. Late-stage patients automatically require more expensive, burdensome treatments with associated administration costs, infusion port placement, complication management, and increased risk for intensive care admissions for routine illnesses. Early aggressive treatment can prevent progression to these high-cost care scenarios.
Patient financial burden varies significantly based on insurance coverage, with substantial out-of-pocket expenses particularly challenging for those on Medicare plans with Part D restrictions. Generic medications present a paradox where system costs may be lower but patient costs higher due to lack of manufacturer copay assistance programs available for brand medications. Third-party assistance programs and recent legislation like the Inflation Reduction Act have provided some relief, but medication cost interruptions remain a significant cause of treatment failure and subsequent hospitalization.
Integrated Care for Chronic Conditions: A Randomized Care Management Trial
December 3rd 2025The authors sought to understand the differential impact of payer-led community-based care management approaches on stakeholder-oriented outcomes for publicly insured adults with multiple chronic conditions.
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Managed Care Reflections: A Q&A With A. Mark Fendrick, MD, and Michael E. Chernew, PhD
December 2nd 2025To mark the 30th anniversary of The American Journal of Managed Care (AJMC), each issue in 2025 includes a special feature: reflections from a thought leader on what has changed—and what has not—over the past 3 decades and what’s next for managed care. The December issue features a conversation with AJMC Co–Editors in Chief A. Mark Fendrick, MD, director of the Center for Value-Based Insurance Design and a professor at the University of Michigan in Ann Arbor; and Michael E. Chernew, PhD, the Leonard D. Schaeffer Professor of Health Care Policy and the director of the Healthcare Markets and Regulation Lab at Harvard Medical School in Boston, Massachusetts.
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