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Preparing for the Ripple Effect: Pricing Transparency and the Medical Device Industry

The medical device industry faces increasing pressure for transparency in pricing its products and its contract terms and how these costs are charged to healthcare payers.   This presentation outlines and analyzes the myriad sources of these pressures -- contract parties, judicial decisions involving third party use of medical device pricing information, and state disclosure statutes.  While this transparency trend is felt throughout the healthcare world, particularly pharma, it presents unique and difficult pressures for medical device manufacturers because their primary distribution channel is narrow – to hospitals or surgery centers -- and results in intense competition to become preferred providers to these buyers. The presentation offers thoughts about addressing these pressures in light of industry needs.