Browse > Article
http://dx.doi.org/10.4332/KJHPA.2020.30.3.409

Price Analysis of Therapeutic Materials for General Spinal Surgery by the Type of Wholesalers  

Byeon, Jinok (Health Insurance Institute, National Health Insurance Service)
Lee, Juhyang (Health Insurance Institute, National Health Insurance Service)
Publication Information
Health Policy and Management / v.30, no.3, 2020 , pp. 409-417 More about this Journal
Abstract
Background: It is well known that the distribution of therapeutic materials is very complex. However, it is not easy to demonstrate the concrete problems caused by distribution channels empirically. The purpose of this study was to investigate the differences in the price of therapeutic materials according to the type of purchasing agency and the way in which medical institutions purchase therapeutic materials. Methods: This study compared the claimed prices and the maximum allowable prices for the items of therapeutic material used for general spinal surgery. Results: Ilsan Hospital, which purchased directly without a purchasing agent, had the lowest claimed prices, followed by a large professional purchasing agency, a foundation-related purchasing agency, and a general purchasing agency. In addition, the difference between the claimed prices and the maximum allowable prices according to the purchase type was larger in the expensive treatment materials, and in the case of the lower price treatment materials, it tended to converge to the maximum allowable prices. Conclusion: National health insurance spending for therapeutic materials are to be affected by the distribution channels of them. We proposed several ideas to rationalize the expenditure such as classification of therapeutic materials on the basis of price or other criteria.
Keywords
Therapeutic material; Medical supplies; Supply chain; Health expenditure;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
연도 인용수 순위
1 Health Insurance Review and Assessment Service. 2015 Medical expenses statistical indicators. Wonju: Health Insurance Review and Assessment Service; 2016.
2 Byeon JO, Lee JH, Kim YR, Lee HJ. Analysis on the determinants of therapeutic materials expenditure in national health insurance. Health Policy Manag 2016;26(4):333-342. DOI: https://doi.org/10.4332/KJHPA.2016.26.4.333.   DOI
3 Health Insurance Review and Assessment Service. 2018 Yearbook of medical expenditure of National Health Insurance [Internet]. Wonju: Health Insurance Review and Assessment Service; 2019 [cited 2020 Jul 15]. Available from: http://www.hira.or.kr/bbsDummy.do?pgmid=HIRAA020045030000&brdScnBltNo=4&brdBltNo=2393&pageIndex=1#none.
4 Lee YT, Kim JE, Kim EY, Park JS, Hwang JW, Jeong SW. Study on the improvement of pricing system for medical devices. Cheongju: Korea Health Industry Development Institute, National Health Insurance Service; 2012.
5 Bae EY. Reimbursement and pricing policies for medical devices and health technology assessment. Health Welf Policy Forum 2014;(212):26-35.
6 Kim MS. 2015. Review of measures to prevent 'vices of indirect supply companies' in medical supplies. DailyMedi [Internet]. 2015 Aug 30 [cited 2020 Jul 15]. Available form: https://dailymedi.com/detail.php?number=796683.
7 Choi SE, Park HY, Bae SY, Han EA, Bae EM, Ahn HT, et al. A study on policy recommendations for post-monitoring system of the medical devices. Wonju: National Health Insurance Service, Korea University Research & Business Foundation; 2014.
8 Choi YJ, Nam HJ, Chae JM. Research on a reasonable pricing policies for medical devices. Wonju: Health Insurance Review and Assessment Service; 2015.
9 Hong SI. Preparing measures to improve the distribution of medical devices and supplies for the management efficiency of HIRA. Ui-hak Sinmun [Internet]. 2007 May 22 [cited 2020 Jul 15]. Available from: http://www.bosa.co.kr/news/articleView.html?idxno=100811.
10 Jung MJ, Park SM, Han KJ, Jang K, Seo KS, Jung HH, et al. Improvement of medical device distribution structure. Cheongju: Korea Health Industry Development Institute; 2012.
11 World Health Organization. Medical devices: managing the mismatch: an outcome of the priority medical devices project. Geneva: World Health Organization; 2010.
12 Medtech Europe. The European medical technology industry in figures 2019 [Internet]. Brussels: MedTech Europe; 2019 [cited 2020 Jul 15]. Available from: https://www.medtecheurope.org/resource-library/the-european-medical-technology-industry-in-figures-2019/.
13 National Health Insurance Service. Main surgery statistical yearbook for 2015. Wonju: National Health Insurance Service; 2016.
14 Rogalewicz V, Ujhelyiova A, Pousek L, Sinkorova V, Kneppo P. Health technology assessment and medical devices. Proceedings of the 2011 E-Health and Bioengineering Conference (EHB); 2011 Nov 24-26; Iasi, Romania. Piscataway (NJ): IEEE; 2011.
15 De Vries J, Huijsman R. Supply chain management in health services: an overview. Supply Chain Manag 2011;16(3):159-165. DOI: https://doi.org/10.1108/13598541111127146.   DOI
16 Health Insurance Review and Assessment Service. Guide map for medical devices and supplies of NHIS [Internet]. Wonju: Health Insurance Review and Assessment Service; 2019 [cited 2020 Jul 15]. Available from: http://www.hira.or.kr/bbsDummy.do?pgmid=HIRAA020002000100 &brdScnBltNo=4&brdBltNo=6707.
17 Korean Medical Device Industry Association. 2016 KMDIA discussion to establish the distribution order of medical devices-seeking ways to solve the problems of purchasing agency in the medical device market. Seoul: Korean Medical Device Industry Association; 2016.
18 Burns LR, Lee JA. Hospital purchasing alliances: utilization, services, and performance. Health Care Manage Rev 2008;33(3):203-215. DOI: https://doi.org/10.1097/01.HMR.0000324906.04025.33.   DOI
19 Pauly MV, Burns LR. Price transparency for medical devices. Health Aff (Millwood) 2008;27(6):1544-1553. DOI: https://doi.org/10.1377/hlthaff.27.6.1544.   DOI
20 Agwunobi J, London PA. Removing costs from the health care supply chain: lessons from mass retail. Health Aff (Millwood) 2009;28(5):1336-1342. DOI: https://doi.org/10.1377/hlthaff.28.5.1336.   DOI
21 Beckert J. Where do prices come from?: sociological approaches to price formation. Socio Econ Rev 2011;9(4):757-786. DOI: https://doi.org/10.1093/ser/mwr012.   DOI
22 Schreyogg J, Baumler M, Busse R. Balancing adoption and affordability of medical devices in Europe. Health Policy 2009;92(2-3):218-224. DOI: https://doi.org/10.1016/j.healthpol.2009.03.016.   DOI
23 Mathur B, Gupta S, Meena ML, Dangayach GS. Healthcare supply chain management: literature review and some issues. J Adv Manag Res 2018;15(3):265-287. DOI: https://doi.org/10.1108/JAMR-09-2017-0090.   DOI
24 Samuel C, Gonapa K, Chaudhary PK, Mishra A. Supply chain dynamics in healthcare services. Int J Health Care Qual Assur 2010;23(7):631-642. DOI: https://doi.org/10.1108/09526861011071562.   DOI
25 Malenka DJ, Kaplan AV, Sharp SM, Wennberg JE. Postmarketing surveillance of medical devices using Medicare claims. Health Aff (Millwood) 2005;24(4):928-937. DOI: https://doi.org/10.1377/hlthaff.24.4.928.   DOI
26 Inderst R, Montez J. Buyer power and mutual dependency in a model of negotiations. RAND J Econo 2019;50(1):29-56. DOI: https://doi.org/10.1111/1756-2171.12261.   DOI
27 Grennan M. Price discrimination and bargaining: empirical evidence from medical devices. Am Econ Rev 2013;103(1):145-177. DOI: https://doi.org/10.1257/aer.103.1.145.   DOI
28 Dafny LS. Are health insurance markets competitive? Am Econ Rev 2010;100(4):1399-1431. DOI: https://doi.org/10.1257/aer.100.4.1399.   DOI
29 Schneller ES, Smeltzer LR; Burns LR. Strategic management of the health care supply chain. San Francisco (CA): Jossey-Bass; 2006.