This is a hard question. And answers (explicit and implicit) vary. My JAMA Forum post elaborates.
Paying for value is all the rage in health care, and recently the spotlight has been brightest on prescription drugs. It’s hard to argue with the notion that how much we pay for a drug should be related to the value it provides. Hard to argue, that is, until you try to pin down whose value counts, what value means, or how much to pay for it.