Geisinger Health System uses a pay-for-performance healthcare delivery model and expects increased prescription drug use will help drive total healthcare cost reductions. However, biotech and pharma companies still will need to demonstrate the outcomes and cost-savings potential of their drugs in the real world before Geisinger will give them a spot on its formulary.

Geisinger serves 2.6 million people in central and northeastern Pennsylvania. The health system owns 41 hospitals and clinics and also is an insurer. The insurance segment has more than 290,000 members. The Geisinger hospital system serves all of these individuals.