title: 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.
authors.affiliation: Division of Cardiovascular Medicine, Department of Internal Medicine, University of Michigan Cardiovascular Center, Ann Arbor 48109-0477, USA.
authors.forename: Robert K
authors.initials: RK
authors.lastname: Keast
authors.forename: Frank
authors.initials: F
authors.lastname: Pelosi
authors.forename: Fred
authors.initials: F
authors.lastname: Morady
authors.forename: Linda R
authors.initials: LR
authors.lastname: Larin
authors.forename: Julie
authors.initials: J
authors.lastname: Goldstein-Dunn
authors.forename: Douglas
authors.initials: D
authors.lastname: Cox
authors.forename: Catherine Gage
authors.initials: CG
authors.lastname: Michalak
authors.forename: Stephen
authors.initials: S
authors.lastname: Fetyko
authors.forename: T Anthony
authors.initials: TA
authors.lastname: Denton
authors.forename: Kim A
authors.initials: KA
authors.lastname: Eagle
mesh_terms: D001145:Arrhythmias, Cardiac / Q000628:therapy*; D003164:Competitive Bidding / Q000379:methods*; D017046:Cost Savings; D017147:Defibrillators, Implantable / Q000191:economics*; D004864:Equipment and Supplies / Q000191:economics; D006801:Humans; D010138:Pacemaker, Artificial / Q000191:economics*; D014481:United States