The Association for Healthcare Resource & Materials Management (AHRMM) of the American Hospital Association recently released a statement expressing concern regarding actions by medical device suppliers that inhibit price transparency. The statement notes that if medical device manufacturers choose not to use “established distribution channels”—including GPOs— the issues surrounding lack of pricing transparency for these devices will only worsen, causing increased costs for hospitals and the government when the rest of the healthcare system is trying to cut costs and make “more informed purchasing decisions” for the benefit of patients.
The statement elaborates on AHRMM’s support of pricing transparency, and how “years of progress” have been made contracting through GPOs to develop this transparency in the medical device market; a market AHRMM feels could be disaggregated if actions like these continue.
“Historically, many medical device manufacturers have inserted contractual confidentiality agreements – so-called “gag clauses” – into hospital contracts for medical devices, products, and services. Confidentiality agreements prevent hospitals from discussing the prices of medical products and services with third parties, with other hospitals, and even with their own physicians. Hospital purchasing executives, physicians, and hospital staff members who administer or use medical products and services should be able to learn the actual cost of the medical devices, equipment, and supplies that they, their insurances providers, and the government will be asked to cover.”