why does medical equipment cost so much?

The Government Accountability Office (GAO) found that another big reason for the high costs of certain medical devices is a lack of transparency. Thus, when everyone in the middle is looking for a profit, the cost of medical devices can skyrocket.

why does medical equipment cost so much?

The Government Accountability Office (GAO) found that another big reason for the high costs of certain medical devices is a lack of transparency. Thus, when everyone in the middle is looking for a profit, the cost of medical devices can skyrocket. It turns out that medical devices, like pharmaceuticals, can be very expensive and their actual prices and costs are also shrouded in mystery. Drug price negotiations are mainly based on changes in market share among competing drugs in a particular class of medicines.

In a discussion of rapidly rising healthcare costs, attention to the pricing of medical services and products is unavoidable. He argues that prior to the Act, the medical profession's voluntary culture of privacy was already extremely effective in limiting breaches of patient confidentiality. Each type of capital equipment and supplies purchased by hospitals is procured differently, and within each type or category, processes vary. Financial waste in the medical device market is likely to be due to both pricing practices and over-utilisation.

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 get away with. For example, Medicare picked multiple winners in each product category, allowing smaller providers to be chosen rather than selecting only those large enough to serve the entire geographic area on their own. But that switching rate can fail if manufacturers succeed in shifting market share to a related drug in the same drug class. And much more money is spent on planning, regulating and managing medical services at the administrative level.

As global overseers of their countries' systems, these governments have the ability to negotiate lower costs for drugs, medical equipment and hospitals. At the same time, most new branded drugs have been targeted at medical conditions with relatively low prevalence and therefore contribute little to spending growth. Medicare classifies durable medical equipment with prosthetics, orthotics and supplies in a general category with the ungainly acronym DMEPOS, and generally pays 80 per cent of these items, with the remaining 20 per cent co-payment being the responsibility of the beneficiary or his or her "Medigap insurer". This compares to Europe, where drug prices are regulated by the government, and are often based on the clinical benefit of the drug.

We use the supplies in this study, most of which are medical devices, as a proxy for all medical devices.

Samantha Brookhouse
Samantha Brookhouse

Typical pop culture fan. Amateur bacon scholar. Subtly charming pop culture specialist. Social media junkie. Award-winning beer evangelist. Friendly travel maven.

Leave Message

All fileds with * are required