JEAN-MANUEL IZARET
BEST-SELLING AUTHOR // PRICING CONSULTANT // RESEARCHER // SPEAKER // TEACHER
THE NETFLIX MODEL FOR MEDICAL TREATMENTS
February 2018
Traditionally we pay for every product and service at the time we purchase or consume them.
But Netflix changed that pricing model and we now pay monthly to see all the movies we want. This gives access to a broader range of movies and shows any time we feel like watching. It also eliminates the concern to pay for a movie we won't like.
Hepatitis C is an curable infectious disease but most patients have not been treated yet because the drug is too expensive on a per patient basis. It saves money in the long term but unaffordable in the short term.
Applying the Netflix model to drugs could change that
Instead of paying for the drug treatment of each patient, a health insurance or a national health care system would pay a annual fee for a few years in exchange for the right to treat all patients
Three main benefits, a win win win solution
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universal treatment of all patients right away
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health care cost savings due to preventative care
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predictable revenues for bio pharma companies
Applications
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Cure for infectious diseases (e.g. Hepatitis C)
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Expensive treatments with different patient severity (SMA)