Spark Therapeutics brought the concept into the spotlight earlier this month when it announced its Luxturna gene therapy would cost $850,000. It proposed tying payments to how effective the drug was and using a sort of payment plan.
How tech will affect the health industry remains a question mark.
Even though some executives philosophically believe in the system, there are still hurdles to overcome, such as how to establish and measure effectiveness.
Digital upstarts are developing new technologies to measure and treat patients. Giants like Amazon are considering getting into the mix.
Johnson & Johnson CEO Alex Gorsky said companies across the medical spectrum need to act like Amazon’s going to disrupt them.