How are prices set?
We’re with you.
Together we increase transparency.
In the medical device market hospitals often have difficulty finding useful price data. Manufacturers or authorized representatives often try to include non-disclosure in contracts. Price transparency enables hospitals to understand how prices are set. It provides tools to fight price discrimination. We take the following steps to increase transparency.
1. Contact our transparency team
You write us your inquiry and send us information about the medical device you would like to benchmark.
2. We check pricing
We check the prices we have in our system and give you feedback. In case we do not have prices we reach out to our Hospital2Hospital network and collect prices.
3. Business case
We show you the prices we have collected in a business case.
4. Increase buying power
With the price data you know whether the offer you have is in line with prices in other member states. You can also use the information as a target result when negotiating.
Effect of transparency.
Many empirical studies have investigated how changes in price transparency can affect a market. Most of this evidence suggests that price transparency leads to lower and more uniform prices, a view consistent with predictions of standard economic theory.
If you only go for transparency you will have suboptimal result. Manufacturers have a tendency not to move on transparency. They will tell you it is normal that there is different pricing between hospitals and member states. They will tell you that this is related to, for example, volume or payment conditions. We know from our experience that in reality there is little relation between volume and price.
What we see in our work is that creating competition is the best strategy for reaching lower prices. Tranparency and competiton go hand in hand. You must proof that you know the market and have access to the same device for a lower price.