Why Increased Transparency is Needed in Health Care Systems

^{By Julie Gould} 

David Henka, president and CEO of ActiveRADAR, an analytics organization that focuses in on drug pricing, explains why transparency needs to be improved in health care systems.

How can stakeholders in integrated health systems and even pharmacists help address the skyrocketing cost of drugs?

I believe that more transparency is needed in the health care delivery system, particularly in the area of pharmaceuticals and drugs. There's very little transparency involved in the system right now. There are rebates that are passed along from the pharmaceutical manufacturers to the pharmacy benefit managers. This information is not very well transmitted to the end user or to the payer.

I believe that ultimately who's paying for these medications, it's both the member, unique individual, and it's also the insurer. Increasing transparency of what the actual cost of medications are, is a key component to helping control costs.

What do you believe health care executives should be aware of in 2020 in regards to drug pricing?

I think that the most important thing is that the market kind of dictates price, and since there is no pricing regulation in the marketplace, that I think that health care costs, particularly in pharmaceuticals, are going to continue to increase.

To expect increases in your health care spend, particularly in pharmaceuticals, is going to be the rule not the exception.