tci Part B Insider - 2003 Issue 14

Studies & Surveys: Medicare Should Be a Smart Buyer of Tech

With Medicare facing serious financial constraints, experts say the program needs to find more cost-effective ways to pay for shiny new tech. To help find the answer, the Medicare Payment Advisory Commission hired Project HOPE to conduct a study of large public- and private-sector purchasers, plus a panel of experts.  The study of large purchasers found they use negotiation, competitive bidding and other strategies to reduce costs of new technologies. The big payers do pay manufacturers' prices for "breakthrough products" with no competition. Payers invest in keeping track of new technologies, contract directly with manufacturers, and use...

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