Reimbursement is a key challenge for many new digital health solutions, whose importance and value have been highlighted and expanded by the current COVID-19 pandemic. Germany’s new Digital Healthcare Act (Digitale–Versorgung–Gesetz or DVG) entitles all individuals covered by statutory health insurance to reimbursement for certain digital health applications (i.e., insurers will pay for their use). Since Germany, like the United States (U.S.), is a multi-payer health care system, the new Act provides a particularly interesting case study for U.S. policymakers. We first provide an overview of the new German DVG and outline the landscape for reimbursement of digital health solutions in the U.S, including recent changes to policies governing telehealth during the COVID-19 pandemic. We then discuss challenges and unanswered questions raised by the DVG, ranging from the limited scope of the Act to privacy issues. Lastly, we highlight early lessons and opportunities for other countries.
Worldwide spending on prescription drugs has increased dramatically in recent years. Although this increase has been particularly pronounced in the U.S., it remains largely unaddressed there. In Europe, however, different approaches to regulating drug prices have been implemented. Under the 2011 German Pharmaceutical Market Restructuring Act (Arzneimittelmarktneuordnungsgesetz, or AMNOG), for example, manufacturers freely set the prices of newly authorized drugs during their first year on the market. Benefit assessments are carried out during this year and then used in price negotiations between manufacturers and representatives of the country’s statutory health insurers. Using data on 57 anticancer drugs launched in Germany from 2002 to 2017, we found that implementation of AMNOG was associated with drug prices being more closely aligned with clinical benefit. Introducing price negotiations led to a 24.5% decrease in negotiated prices relative to launch prices. We did not find evidence that manufacturers responded by setting higher launch prices. AMNOG is an example of how government price negotiation can be designed to better align prices with clinical benefit without delaying patient access.
In 2018, Swedish furniture maker IKEA was undergoing a significant transformation. Challenged by the rise of online shopping and changing consumer behavior, and mourning the death of its founder, the Company's top executives knew they had to step out of their comfort zones and embrace new strategic initiatives to stay relevant. But which initiatives, executed where, when and how, would enable IKEA to achieve its goals in a way that was profitable while creating an IKEA they would want to pass on to the next generation of co-workers and customers?
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Vincent Dessain, a Belgian national, is the Executive Director of the Europe Research Center (ERC). Vincent has extensive management and business education experience. He is a co-author of two books in finance, a book chapter on intercultural management and a co-author of a wide variety of articles in academic journals, case studies and course development notes (cases can be found on www.hbsp.harvard.edu or here). He is a frequent guest speaker invited by academia, business and government to speak on topics in management and education.
Prior to his appointment at the Europe Research Center, he was Senior Director of Corporate Relationships at INSEAD in Fontainebleau and elected as the representative of the INSEAD administration on the School’s Board of Directors. Earlier in his career, Vincent has been active as a management consultant with Booz-Allen & Hamilton in New York and Paris. His field of consulting was international market entry strategies, financial products, strategy, negotiation and implementation of cross border alliances, financial restructuring, mergers and acquisitions. He has also been active as a Foreign Associate with the law firm Shearman & Sterling in New York in Banking and Finance and as an Advisor to the President of the College of Europe in Bruges, Belgium.
Vincent speaks five European languages (French, English, German, Dutch and Italian). He holds a law degree from Leuven University (Belgium), a Business Administration degree from Louvain University (Belgium), an MBA from Harvard Business School (Boston, USA), and a PhD in management and communication from Université Paris VIII, France, on corporate social responsibility.