How do you incorporate health economics and outcomes research (HEOR) into your pricing decisions?

1 What is HEOR and why does it matter?

HEOR is a multidisciplinary field that applies economic and statistical methods to evaluate the effectiveness, efficiency, and value of healthcare interventions. HEOR can provide insights into the clinical outcomes, costs, preferences, and quality of life of different patient populations, as well as the impact of alternative treatments, policies, and programs on health systems and society. HEOR can help you demonstrate the value of your product to various stakeholders, such as payers, providers, patients, and policymakers, who may have different perspectives and criteria for assessing and rewarding innovation. HEOR can also help you identify and address any gaps or uncertainties in your value proposition, as well as any potential barriers or opportunities for market access.

2 How to generate and use HEOR evidence?

To generate and use HEOR evidence, you need to follow a systematic and rigorous process that involves several steps. First, you need to define your research question and objectives, based on your product's value proposition and the needs and expectations of your target audience. Second, you need to design your study and select the appropriate methods and data sources, such as randomized controlled trials, observational studies, surveys, registries, claims databases, or modeling techniques. Third, you need to analyze your data and interpret your results, using relevant frameworks and metrics, such as cost-effectiveness analysis, budget impact analysis, patient-reported outcomes, or value-based pricing. Fourth, you need to communicate and disseminate your findings, using clear and compelling formats, such as reports, publications, presentations, or interactive tools.

4 How to align your pricing with your value proposition?

Aligning your pricing with your value proposition is essential to ensure that your product is perceived as fair and attractive by your customers and stakeholders. To align your pricing with your value proposition, you need to consider several factors, such as the value drivers and the value perception of your product, the willingness to pay and the affordability of your customers, the price elasticity and the price sensitivity of the market, and the price regulations and the price negotiations of the country or region. You can use different approaches and tools to align your pricing with your value proposition, such as value-based pricing, cost-plus pricing, market-based pricing, or price optimization.