dismiss

Come visit us at Booth 901 at AHRMM in Washington, DC
Mark your calendars! On August 2nd is our upcoming LIVE Clean Sweep Auction

DOTmed Home MRI Oncology Ultrasound Molecular Imaging X-Ray Cardiology Health IT Business Affairs
News Home Parts & Service Operating Room CT Women's Health Proton Therapy Endoscopy HTMs Mobile Imaging
SEARCH
Current Location:
>
> This Story


Log in or Register to rate this News Story
Forward Printable StoryPrint Send us your Comments

 

More Industry Headlines

Breast Imaging Product Showcase Some of the best and newest innovations in breast imaging

Henry Ford Cancer Institute treats first patient with ViewRay's MRIdian Linac 'Takes off the blindfold' for radiation oncologists

Philips and West Physics partner on CT dose management program Deal aims at helping providers meet dose management needs

Taking the bite out of rabies In 1885 Louis Pasteur successfully tested his rabies vaccine

Research team develops surgical glue that's visible with CT, X-ray and ultrasound Viable alternative to surgical staples

Medic Vision receives U.S. patent for XR-29 Dose-Check system 'Fully expects' imaging service providers to respect its patent rights

GE Healthcare, Jefferson Health partner for $1 billion in efficiencies Eight-year deal will put over 100 GE staffers into 13 network hospitals

PET scans could improve dementia diagnosis in two-thirds of patients 'A swift and accurate diagnosis has a huge impact on access to Alzheimer's treatments.'

ECRI launches its ValuVu product evaluation workflow platform Designed for supply chain and value analysis professionals

Mayo launches new $1.5 billion integrated Epic EHR system Customized to 'specific needs of Mayo Clinic patients and staff'

Price disclosure doesn't
always work, researchers find

Will Mandatory Medical Technology Price Disclosure Actually Increase Prices?

by Barbara Kram , Editor
A new study found that pending congressional legislation seeking the mandatory disclosure of prices for certain medical technologies would likely result in increased prices and "provide no tangible benefits to patients."

The study by Robert W. Hahn, senior fellow at the American Enterprise Institute, and Hal J. Singer, president of Criterion Economics, examines the potential economic impact of the Transparency in Medical Device Pricing Act of 2007 (S. 2221), recently introduced in the U.S. Senate.

Story Continues Below Advertisement

New OEC 9800 LCD upgrade available! Call today: 800-400-7972

Easy install retrofit kit! Extend the life of your OEC system by upgrading the CRTs to dual 2MP LED displays mounted on an articulating arm. Priced competitively & optimized for do-it-yourself installation in under an hour.



In the report, the researchers review previous attempts by governments to impose price disclosure rules in a number of other industries including cell phones, groceries, cement, barges, railroads and long-distance telephone services. The authors use evidence from case studies and other sources to identify four conditions that, if satisfied, imply that mandatory price disclosure would provide large benefits to consumers or other purchasers.

"We found that mandatory price disclosure, as proposed in S.2221 is unlikely to benefit patients or hospitals and worse, will likely increase costs," said Hahn.

The authors write that in order for price disclosure to have a favorable effect, there must be large search costs that are reduced substantially, and that the pricing information disclosed be current. The industry-specific market conditions essential for lower prices to occur would require that any savings be passed on to end users, and that there is a large variation in the price paid by purchasers and consumers.

The report finds that the conditions that would likely result in large cost increases as the result of pricing disclosure are met.

Specifically, the report finds that:

* The medical device industry is concentrated among a few firms.
* There are few, if any, economical substitutes for many medical devices.
* Competitors repeatedly interact in the marketplace.
* Some medical devices are standardized whereas other devices are differentiated.
* Firms do not already know their rivals' prices.

The report's findings conclude that:

* Significant search costs for hospitals and patients would remain.
* Disclosure would not provide current price information since the data would be at least three months old.
* The structure of the healthcare industry would not ensure that hospitals pass cost savings on to consumers.

"Applying these conditions to the medical device industry, we conclude that mandatory price disclosure policy would likely increase prices hospitals pay for these products and provide no tangible benefit to patients," said the authors.

The study was supported by the Advanced Medical Technology Association.

More information and the full report are available at: www.criterioneconomics.com.





Related:


Advertise
Increase Your
Brand Awareness
Auctions + Private Sales
Get The
Best Price
Buy Equipment/Parts
Find The
Lowest Price
Daily News
Read The
Latest News
Directory
Browse All
DOTmed Users
Ethics on DOTmed
View Our
Ethics Program
Gold Parts Vendor Program
Receive PH
Requests
Gold Service Dealer Program
Receive RFP/PS
Requests
Healthcare Providers
See all
HCP Tools
Jobs/Training
Find/Fill
A Job
Parts Hunter +EasyPay
Get Parts
Quotes
Recently Certified
View Recently
Certified Users
Recently Rated
View Recently
Certified Users
Rental Central
Rent Equipment
For Less
Sell Equipment/Parts
Get The
Most Money
Service Technicians Forum
Find Help
And Advice
Simple RFP
Get Equipment
Quotes
Virtual Trade Show
Find Service
For Equipment
Access and use of this site is subject to the terms and conditions of our LEGAL NOTICE & PRIVACY NOTICE
Property of and Proprietary to DOTmed.com, Inc. Copyright ©2001-2017 DOTmed.com, Inc.
ALL RIGHTS RESERVED