Purchasing Insight: The growing hip implant market
In 2011, total product revenue from hip implants in the U.S. was approximately $2.8 billion and it’s projected to grow to $3.3 billion by 2016. The growing use of hip implants makes it an important focus for healthcare organizations that are trying to manage their costs.
Types of hip replacement procedures include total hip, partial hip (or hip resurfacing), and revisions with replacement components that include the stem, femoral head, acetabular cup and shell. These components are designed to be cemented or non-cemented, and can include ceramic or non-ceramic inserts.
Pricing shown below includes all components, such as cemented and non-cemented, ceramic and non- ceramic. In the last couple of years, some of the focus has shifted to more personalized instrumentation, as well as a minimally invasive approach and robotic assistance.
Hip Arthroplasty Procedures
Total Hip
Low High Average
$4,300 $7,200 $5,500
Partial Hip
Low High Average
$2,100 $4,000 $3,075
As with most consumable items, lower prices are usually achievable by standardizing on one vendor. Additionally, market-share agreement offers more leverage during negotiations. If standardizing is not possible, then signing multi-year agreements with multiple vendors can help, but when negotiating multi-year agreements, ensure that prices are locked in for the term of the agreement to avoid price hikes.
Also, consider using a trusted source to review contracts and pricing to make sure they are in line with what the rest of the market is seeing for these products.
Data source: MD Buyline (Please note that these numbers have been adjusted to exclude special deals, outliers, and unique circumstances)
