why are medical supplies so expensive?

Their experience is yet another example of pricing in medicine, which often does not reflect what things really cost, but what healthcare companies think they can make. Financial waste in the medical device market is probably due to both pricing practices and over-utilisation. The health system itself may be fragmented, with only one or two companies offering health insurance or medical care in many parts of the country. As a result of this and other bidding policies, about 75 per cent of the providers selected in the demonstration were small businesses, as defined by the Small Business Administration.

In Table 5-4, the data sample of the 123 hospitals is ordered so that the three hospitals with the highest total amounts spent on supplies are at the top and the three with the lowest are at the bottom. Notably, hospitals with higher supply chain efficiency scored slightly better on several Medicare quality programmes, suggesting that lower spending on supplies need not harm quality of care. Moreover, in a competitive bidding environment, unsuccessful providers would lose business in Medicare, at least in the supply categories for which they were not chosen, which would be a large reduction in business, as Medicare accounts for about half of many providers' business. The cost of healthcare in the US continues to rise at a rapid rate, and medical procedures here can cost three to ten times more than in other first-world nations.

For example, Medicare chose multiple winners in each product category, allowing smaller providers to be selected rather than only those large enough to serve the entire geographic area on their own. ECRI Institute's Lerner concludes this session by discussing medical device pricing and market practices. It turns out that medical devices, like pharmaceuticals, can be very expensive and their actual prices and costs are also shrouded in mystery. He acknowledges that, in addition to hospitals, data from outpatient medical centres and physician groups would be needed for a more complete analysis.

They are often purchased and reimbursed by doctors through health insurance, rather than through a prescription drug benefit. Let us take a step back to examine some features of the market for medical devices, the aspects of the market that operate differently and thus affect the means to reduce costs, and the changing dynamics that threaten the savings that can now be achieved. In the case of the national tendering programme, suppliers also raised concerns about the tendering process and seemed to prefer a 9.5 tariff reduction at the national level to the 26n reduction in the 10 tendering areas (U.

Jonathon Lavelett
Jonathon Lavelett

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