The Laura and John Arnold Foundation donated $7.2 million to find ways to reduce rising drug costs.
"There are major flaws in our drug-purchasing structures, and we must address these issues as part of the effort to improve patient health and manage the cost of care," LJAF Vice President Kelli Rhee said in a statement. "These projects will help to identify sustainable, evidence-based drug-pricing solutions that target the root causes of the broken market and can serve as models for reform across the entire healthcare system."
The grant will fund research on regulatory policies and programs that impact drug pricing, drug development and access to medication, as well as pilot projects to test new drug pricing models.
More specifically, the funds will be allotted as follows:
- $4.7 million will go to New York City-based Memorial Sloan Kettering Cancer Center for a three-year initiative that is evaluating alternative value-based payment structures for specialty drugs.
- $1.6 million will go to the Center for Evidence-based Policy at Oregon Health and Science University in Portland for a 15-month project that researches and pilots programs based on how drugs are developed, regulations for drug purchasing and alternative purchasing models.
- $748,445 will go to Boston-based Brigham & Women's Hospital for a one-year project to evaluate the effectiveness of regulatory programs that incentivize drug development.
- $200,000 will go to a two-year research project that looks at patient access to drugs at the National Academy of Sciences Institute of Medicine.
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