New York Times. Look at the layers of self-protection manufacturers have put in place to protect and increase their prices, their patents and their huge profits, often with the aid of Congress and federal agencies, all working against the consumer.
Medical costs in the United States are far, far out of proportion to costs in the rest of the world and here is one of the reasons, from a story this morning in the
"Generic or foreign-made joint implants have been kept out of the United
States by trade policy, patents and an expensive Food and Drug
Administration approval process that deters start-ups from entering the
market. The “companies defend this turf ferociously,” said Dr. Peter M.
Cram, a physician at the University of Iowa medical school who studies
the costs of health care.
"Though the five companies make similar models, each cultivates intense
brand loyalty through financial ties to surgeons and the use of a
different tool kit and operating system for the installation of its
products; orthopedists typically stay with the system they learned on.
The thousands of hospitals and clinics that purchase implants try to
bargain for deep discounts from manufacturers, but they have limited
leverage since each buys a relatively small quantity from any one
company.
"In addition, device makers typically require doctors’ groups and
hospitals to sign nondisclosure agreements about prices, which means
institutions do not know what their competitors are paying. This secrecy
erodes bargaining power and has allowed a small industry of
profit-taking middlemen to flourish: joint implant purchasing
consultants, implant billing companies, joint brokers. There are as many
as 13 layers of vendors between the physician and the patient for a hip
replacement, according to Kate Willhite, a former executive director of
the Manitowoc Surgery Center in Wisconsin."
(Graphic: georgetownhospitalsystem.org)
No comments:
Post a Comment