Purchasing Insight: Cardiac rhythm management devices

Did you know that purchasers can often achieve better deals on cardiac rhythm management (CRM) devices with bulk purchases, system purchases, and market share agreements?  But before committing to a bulk purchase, it’s important to ensure that your volume warrants such an agreement.

Bulk
When multiple CRM models are purchased, language needs to be inserted into the agreement allowing for less frequently used models to be exchanged for ones of the same price, but with higher usage. Also ensure the agreement states that CRMs are to be delivered on an as-used/needed basis to prevent items from remaining on the shelf for long periods of time.

System
When it comes to system purchases, bundling CRM generator and leads as a system guarantees the vendor that their leads will be used with the generator, and this guaranteed grouping is often offered at an even further reduced price. However, before committing to this type of purchase, it is important to ensure that each physician’s lead preferences are available with the selected systems.

Market Share
When looking to enter into a market share agreement, all implanting physicians need to be on board. This guarantees that you will have the products required for your patient population. Also, having the physicians aligned with your purchasing strategies can help with your negotiation leverage.

When entering into a contract that limits the number of vendors in the market, it is important to include language that will protect you from product shortages, and prevent you from missing out on new technologies. If a vendor is unable to deliver a product due to a shortage or an FDA recall, it is important to have language that would allow purchases from non-contracted vendors with those purchases counting towards your contracted commitments.

For new or unique FDA-approved technologies from non-contracted vendors, language should be included that would allow the purchase of these products, with these purchases also counting towards your contracted commitments.

Dual Chamber Pacemaker Pricing

Low                                            High                                                            Average Price

$2,750                                      $6,700                                                        $4,460

Dual Chamber ICD Pricing

Low                                            High                                                            Average Price

$13,000                                   $25,500                                                     $16,380

CRT-D Pricing

Low                                            High                                                            Average Price

$16,000                                   $30,420                                                     $20,415

Source: MD Buyline
Please note these numbers have been adjusted to exclude special deals, outliers and unique circumstances.