Practicing medicine without considering pharmacy is like getting to the 90-yard line, putting down the ball, and walking off the field — and yet almost no mainstream contract holds a PBM accountable for the downstream medical costs caused by suboptimal pharmacy benefit design. Dan Mendelson, CEO of Morgan Health at JPMorgan Chase, joins Stacey Richter to dig into five vital considerations for optimizing pharmacy benefits within value-based care, building on a LinkedIn post he wrote that kicked off this whole conversation. WHAT YOU'LL LEARN ✅ Why pharmacy benefits have to be managed by a clinical team and integrated into the overall context of care — not purchased and siloed separately from medical benefits ✅ Why pharmaceutical companies need to be ready to contract on the basis of value, and what that actually requires from a manufacturer ✅ Why evidence requirements in pharmacy benefit design are good for everyone involved, including patients, plan sponsors, and manufacturers ✅ Why pooling risk matters for optimized pharmacy benefits, and how to do it without simply handing the problem to an insurance company ✅ Dan's specific advice for hospitals, primary care doctors, and entrepreneurs trying to operate in a value-based world where "buy and bill" no longer makes sense WHY THIS MATTERS Total cost of care, value-based medical care, and pharmacy benefits are not separate worlds, even though they're so often purchased and managed as if they were. A patient who gets an expensive organ transplant but can't afford the anti-rejection meds, or who's told to take insulin they can't afford, represents a system that optimized the medical side while leaving pharmacy as an afterthought — and the downstream costs of that gap land on patients, employers, and the system as a whole. Building pharmacy benefits with the same rigor, accountability, and clinical integration as medical benefits isn't optional if value-based care is the actual goal. MENTIONED IN THIS EPISODE Encore! EP206 with Ashok Subramanian: Apple Podcasts | Spotify | Other Apps EP426 with Nina Lathia, RPh, MSc, PhD: Apple Podcasts | Spotify | Other Apps EP431 with Kenny Cole, MD: Apple Podcasts | Spotify | Other Apps === LINKS === 🔗 Show Notes with all mentioned links: Episode Page ✉️ Enjoy this podcast? Subscribe to the free weekly newsletter 🫙 Support the podcast with a small donation to the Tip Jar 🎤 Listen on Apple Podcasts 🎤 Listen on Spotify 📺 Subscribe to our YouTube channel === CONNECT WITH THE RHV TEAM === ✭ LinkedIn ✭ Threads ✭ Bluesky ✭ X 00:00 Introduction 04:50 How do we connect the dots between value-based care and pharmacy benefits? 07:43 Where do things need to go for employers in terms of drug spend integration? 08:42 How do we think about having a value-based component in the decision-making process? 09:44 How do we enable the necessary information to make proper decisions? 10:56 Encore! EP206 with Ashok Subramanian. 11:21 "Many payviders just haven't gotten to pharmacy yet; they need to." 14:14 Why do pharmaceutical companies need to be prepared to contract on the basis of value? 16:46 EP426 with Nina Lathia, RPh, MSc, PhD. 17:36 EP431 with Kenny Cole, MD. 18:07 Why is it important to "let the market work"? 21:04 Why do we have cost sharing, and when does it not make sense to have that as a co-pay? 23:59 Why are evidence requirements good for everyone? 28:45 Why is pooling of risk important? 29:49 How do you pool risk without going to an insurance company? 32:03 What is Dan's advice to hospitals? 33:30 "In a value-based world, buy and bill does not make sense." 33:36 What is Dan's advice to primary care doctors? 33:54 What is Dan's advice to entrepreneurs and innovators?