The effects of rebate contracts on the health care system

Graf, Julia

doi:10.1007/s10198-013-0488-x

Cited by 16 publications

(4 citation statements)

References 18 publications

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“…When there are multiple preferred suppliers for the same chemical substance, pharmacies are allowed to choose among preferred brands. By law, pharmacies are allowed to dispense drugs from a non-preferred supplier only (a) if an attending physician explicitly prescribes a specific brand, (b) in situations of proven supply difficulties, or (c) if a patient pays the full price of a nonpreferred drug [13]. However, since regulation is not fully enforced, pharmacies have some discretion in their dispensing.…”

Section: Background On Preferred Supplier Contractsmentioning

confidence: 99%

Preferred supplier contracts in post-patent prescription drug markets

Blankart

Stargardt

2016

Health Care Manag Sci

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In recent years, the expiration of patents for large drug classes has increased the importance of post-patent drug markets. However, previous research has focused solely on patent drug markets. In this study, the authors evaluate the influence of preferred supplier contracts, the German approach to tendering, in post-patent drug markets using a hierarchical market share attraction model. The authors find that preferred supplier contracts are a powerful strategic instrument for generic manufacturers in a highly competitive environment. They quantify the effects of signing a preferred supplier contract and show that brand-name manufacturers are vulnerable to tendering. Therefore, brand-name manufacturers should readjust their strategies and consider including preferred supplier contracts in their marketing mix. In addition, the authors employ a simulation to demonstrate that a first-mover advantage might be gained from signing a preferred supplier contract. Furthermore, their results can be used as a blueprint for decision makers in the pharmaceutical industry to assess the market share effects of different contracting strategies regarding preferred supplier contracts.

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Section: Background On Preferred Supplier Contractsmentioning

confidence: 99%

Preferred supplier contracts in post-patent prescription drug markets

Blankart

Stargardt

2016

Health Care Manag Sci

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“…A more fine-grained analysis of various age groups has revealed that this is largely driven by economists who are older than 45. In contrast, a journal's Handelsblatt only positively influences a journal's reputation for economists aged 55 and younger.…”

Section: Estimation Results For Different Age Groupsmentioning

confidence: 99%

What drives the relevance and reputation of economics journals? An update from a survey among economists

Haucap

Muck

2015

Scientometrics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis is paper analyses the interrelationship between perceived journal relevance and reputation. Based on a survey of 705 members of the German Economic Association, we find a strong interrelationship between journal reputation and relevance where a journal's perceived relevance has a stronger effect on the journal's reputation than vice versa. Moreover, past journal ratings conducted by the Handelsblatt and the German Economic Association (GEA) directly affect journals' reputation among German economists and indirectly also their perceived relevance, but the effect on reputation is more than twice as large as the effect on perceived relevance. In general, citations have a non-linear impact on perceived journal reputation and relevance. While the number of landmark articles published in a journal increases reputation, an increase in the so-called H-index even tends to decrease a journal's perceived relevance, as long as this is not simultaneously reflected in a higher Handelsblatt-and/or GEA-rating. We also identify significant differences in the views on journal relevance and reputation between different age groups.JEL Codes: A11, A14, I23, L82

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“…GPOs are prone to kickbacks/sharebacks, significant profit-taking from both manufacturers and hospitals, and are a major cause of the lack of transparency in the supply chain. 2 Despite the strong claims made by the GPO industry relative to the savings derived from consolidation (Jayaraman et al, 2014), several extensive reviews of the healthcare contracting literature fails to find a single study documenting the existence of a relationship between a higher volume of purchases and cost savings (Dobryzkowski et al, 2014; Graf, 2014; Hu, Schwarz, and Uhan, 2012; Kim and Kwon, 2015; Volpp, 2016). These studies are the catalyst for our exploration of the issue of healthcare supply chain transparency.…”

Section: Literature Review and Research Propositionmentioning

confidence: 99%

Do prices vary with purchase volumes in healthcare contracts?

Handfield

Venkitaraman

Murthy

2017

Journal of Strategic Contracting and Negotiation

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Hospitals are facing severe increases in the cost of clinical supplies, and a common strategy is to drive economies of scale achieved by hospital consolidation. The supply strategy of “volume leveraging” involves sourcing through contracts with Group Purchasing Organizations (GPOs) for commercial distributors and manufacturers of medical products. This study seeks to document the empirical benefits associated with volume leveraging, through analysis of purchasing data from three large hospitals. The dependent variables include a number of factors that are used to justify volume leveraging approaches, yet the study finds no significant explanatory factors that determine price variation related to the volume purchased. Interviews with physicians and clinicians suggest that poor data quality leads to lack of transparency, and an inability to aggregate volumes across inventory SKUs may be preventing volume-based cost savings from materializing. The results also suggest that lack of transparency results in low levels of utilization, which increases costs.

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The effects of rebate contracts on the health care system

Cited by 16 publications

References 18 publications

Preferred supplier contracts in post-patent prescription drug markets

Preferred supplier contracts in post-patent prescription drug markets

What drives the relevance and reputation of economics journals? An update from a survey among economists

Do prices vary with purchase volumes in healthcare contracts?

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