Navigation Links
New Report Finds Mandatory Price Disclosure for Med Tech Would Likely Increase Prices
Date:2/19/2008

WASHINGTON, Feb. 19 /PRNewswire-USNewswire/ -- A new study released today 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, released today at the National Press Club by its authors Robert W. Hahn, executive director, Reg-Markets Center and 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.

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; and,

-- 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; and,

-- The structure of the health care 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.

For more information and access to the full report, please visit http://www.criterioneconomics.com.


'/>"/>
SOURCE Criterion Economics, LLC
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Virginia Tech Report Has National Importance
2. New Study Reports High Injury Rates for Hotel Workers, Even Higher Rates for Women and Nonwhites
3. GAO Report Confirms: Medicare Underpays for Anesthesia Services; Nurse Anesthetists Assure Seniors Access to Safe Anesthesia Care
4. Haemacure Reports Third Quarter 2007 Results
5. Report on patients access to cancer drugs uses flawed methods to reached flawed conclusions
6. Biotech Finishes on a High in August, Burrill Report Says
7. First-Ever List of the 5,000 Fastest-Growing Businesses Reports Total Revenue of $194.5 Billion
8. Consumer Reports Analysis: Drugs for Nerve Pain, Fibromyalgia Effective, But Not Always Best
9. MDS Reports Third Quarter 2007 Results
10. First New York/New Jersey Health Care Report Card Released
11. Authentidate Holding Corp. to Report Fourth Quarter and Fiscal 2007 Year End Results on Thursday, September 13, 2007
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:7/24/2017)... ... July 24, 2017 , ... The ... to promote awareness for Topricin’s revolutionary, natural, after-burn skin care product, Topricin After ... leading causes of long term skin conditions, including cancer. In the short ...
(Date:7/24/2017)... ... July 24, 2017 , ... Puregraft, the ... announces the issuance of United States Patent Number 9,695,398 (the '398 patent) and ... The '398 and '324 patents cover methods and systems for optimizing fat ...
(Date:7/24/2017)... , ... July 24, 2017 , ... Sharon Kleyne, host ... and Your Health on VoiceAmerica sponsored by Nature’s Tears® EyeMist® recently talked on the ... of myopia in China. , The article by Zidor Aldama described the situation in ...
(Date:7/24/2017)... BEACH, Calif. (PRWEB) , ... July 24, 2017 , ... ... ranging from food addiction to sexual abuse, and how she has overcome them. “Forbidden ... traumatic instances in her life and how she has risen above. , In “Memories,” ...
(Date:7/24/2017)... ... July 24, 2017 , ... Summer storms are inevitable as weather temperatures ... and often result in massive tree damage requiring emergency tree service. Giroud ... tree trimming, tree cabling and hazardous tree removal. , “A summer storm ...
Breaking Medicine News(10 mins):
(Date:7/11/2017)... 2017  The global market for liquid biopsy diagnostic ... million in 2016.  Although in early stages, the global ... particular as a result of the gradual shift towards ... introduction of a significant number of new liquid biopsy ... tumor biomarkers to guide treatment decisions. ...
(Date:7/10/2017)... 2017 The Institute for In Vitro Sciences ... recipient of a VITROCELL® inhalation exposure system thanks to ... The device, which is designed to replace animals in ... cells to airborne test materials in an environment that ... system for testing combustible tobacco products, as well as ...
(Date:7/5/2017)... , July 5, 2017 Wolfmet 3D  printed ... as physics and manufacturing combine to progress molecular radiotherapy imaging. ... SPECT systems are unable to accurately quantify the radiation absorbed ... information regarding the success of this radiotherapy treatment has been ... ...
Breaking Medicine Technology: