US Hospitals Mount Pressure on Medical Devices Prices

16 November 2009 (Last Updated November 16th, 2009 18:30)

US hospitals struggling with financial constraints are placing pressure on medical device makers to bring costs down. Medical devices represent one of the major expenses for hospitals. With the hospital industry agreeing for Medicare payment cuts of $155bn over a decade as par

US hospitals struggling with financial constraints are placing pressure on medical device makers to bring costs down.

Medical devices represent one of the major expenses for hospitals.

With the hospital industry agreeing for Medicare payment cuts of $155bn over a decade as part of a deal with US senators, hospitals face increasing pressure to control costs.

Hospitals, however, have limited ability to negotiate better pricing for medical devices, since doctors influence the purchase of devices, hospital authorities said.

The proposed US healthcare reform includes a tax on device makers, expected to generate around $40bn over ten years, to support the reform.