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Determinants of Price Discrimination in the Acquisition of Medical Devices

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Abstract

Medical device expenditures are an important driver of the growth in health care spending and hospitals pay significantly different prices for the same medical device. This paper uses hospitals’ acquisition data to explore the determinants of price discrimination in the acquisition of medical devices across Italian hospitals considering demand factors such as institutional characteristics of the buyer, devices substitution patterns, area of localization, and purchase conditions. I find evidence that public hospital trusts and those located in northern regions are more efficient in acquiring medical devices, and that more flexibility in contracting with different device manufacturers and higher purchase volumes reduce the likelihood of paying higher prices.

Suggested Citation

  • Mercedes Vellez, 2012. "Determinants of Price Discrimination in the Acquisition of Medical Devices," CEIS Research Paper 235, Tor Vergata University, CEIS, revised 11 May 2012.
  • Handle: RePEc:rtv:ceisrp:235
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    Cited by:

    1. G. Crea & A. Cavaliere & A. Cozzi, 2019. "Price discrimination in the Italian medical device industry: an empirical analysis," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(2), pages 571-608, July.

    More about this item

    Keywords

    price discrimination; hospital efficiency; medical devices; procurement;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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