More price transparency could improve hospital bargaining power

Increased access to group purchasing information at peer hospitals could help care facilities drive down costs for some medical supplies, reports Morning Consult.

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That finding comes from a study published by the National Bureau of Economic Research.

The study found improved price transparency could help hospitals save nearly 26 percent on relatively high-priced items, according to the article. The potential savings was more pronounced with items purchased in bulk.

While the analysis was contained to coronary stents, NBER researchers believe the finding could help hospitals improve their bargaining and purchasing strategies for other types of medical supplies.

As new data tools increase a hospital’s ability to access price information, NBER researchers expressed optimism that cost savings in medical purchases could become more extensive.


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