Shelf price agreements: a novel approach to competitive bidding for arrhythmia therapy devices.

Abstract

Over the past decade, the financial pressures from variations in reimbursement and payer mix, combined with rapidly evolving technology, has forced healthcare institutions in the United States to seek out further options for cost savings. In the arena of interventional cardiology, the ability to successfully negotiate the lowest possible cost for a relatively small number of high-cost devices can result in significant savings. Historically, competitive bidding with market-share guarantee to a preferred vendor or two initially resulted in moderate cost savings. However, in 2003 our institution embarked on a novel approach in which we defined the price to be paid, and we challenged our vendors to meet that price. Early results of this aggressive strategy suggest that it is a successful technique in reducing supply costs and maintaining collaborative relationships with vendors while remaining fair and competitive.