Transcript Slide 1
The Consequences of Secret Prices: The
Politics of Physician Preference Items
Why Secret Prices of PPI’s Became a Political Issue
Prices of PPI’s Are Not Yet Entirely Confidential
Unexplained Variation in Prices
Some Reasons Why Prices May Vary
PPI’s and Increasing Transparency in the Health Sector
Alternatives to Opaque PPI Pricing
Lerner JC, Fox, DM, Nelson T, Reiss JB. The consequences of
secret prices: the politics of physician preference items. Health
Aff 2008;27(6):1560-5.
ECRI Institute
5200 Butler Pike
Plymouth Meeting, PA 19462
Phone: 610 825 6000 x 5142
[email protected]
www.ecri.org
.
What’s at Stake
$60 Billion annually and rising
Jeffrey C. Lerner, Ph.D
President and Chief Executive Officer
ECRI Institute
5200 Butler Pike
Plymouth Meeting, PA 19462
Phone: 610 825 6000 x 5142
[email protected]
www.ecri.org
.
Trends in Prices of Total Hip Implants
Adapted from Stan Mendenhall’s Orthonet News
7000
6000
5000
4000
3000
2000
1000
0
1996
2006
Average selling price
Percent increase is 132%
From $2,841 to $6,584
Jeffrey C. Lerner, Ph.D
President and Chief Executive
Officer
ECRI Institute
5200 Butler Pike
Plymouth Meeting, PA 19462
Phone: 610 825 6000 x 5142
[email protected]
www.ecri.org
Smart Shoppers Pay Less
Prices for hip implant devices varied
between $2,300 and $7,300
http://www.iha.org/mtorthc.htm
Jeffrey C. Lerner, Ph.D
President and Chief Executive Officer
ECRI Institute
5200 Butler Pike
Plymouth Meeting, PA 19462
Phone: 610 825 6000 x 5142
[email protected]
www.ecri.org
.
S. 2221: Transparency in Medical Device Pricing
Act of 2007
Quarterly Reporting of Sales Price Data for Implantable Medical
Devices
Average and median sales price
Price shall include volume discounts, free goods and services that are
contingent on any purchase requirement, chargebacks, and rebates,
and any other discounts or price concessions the Secretary determines
to be appropriate
https://www.ecri.org/Documents/Transparency_in_Medical_Device_Pricing_Act_of
_2007.pdf
Jeffrey C. Lerner, Ph.D
President and Chief Executive Officer
ECRI Institute
5200 Butler Pike
Plymouth Meeting, PA 19462
Phone: 610 825 6000 x 5142
[email protected]
www.ecri.org
Transparency Supports Effective
Negotiation
Without it—you’re in the dark
Jeffrey C. Lerner, Ph.D
President and Chief Executive Officer
ECRI Institute
5200 Butler Pike
Plymouth Meeting, PA 19462
Phone: 610 825 6000 x 5142
[email protected]
www.ecri.org
.