Negotiating Prices of Medical Devices

In most cases, doctors decide which medical devices are necessary for their patients. Since the hospitals pay for the devices, the doctors have had little incentive to hunt for reduced prices.

However, a new initiative being championed by several hospital systems calls for doctors and hospitals to share cost savings on the purchase of medical devices. Thus, the process governing the negotiating of buying medical devices should shift in favor of the hospitals and away from the device makers.