Drug deals tie prices to how well patients do

New York Times, April 23, 2009

Pressed by insurance companies, some drug makers are beginning to adjust what they charge for their drugs based on how well the medicines improve patients' health. Such pay-for-performance contracts started to take hold a few years ago in countries with national health systems, in which the government could effectively block a drug from being used if it was too costly. Some experts hail such arrangements as a welcome step toward healthcare that rewards good outcomes for patients.