Hospital‐Negotiated Pricing of Cochlear Implants

Author:

Bartholomew Ryan A.1ORCID,Rathi Vinay K.1,Suresh Krish1,Sethi Rosh K. V.2,Lee Daniel J.1,Xiao Roy1

Affiliation:

1. Department of Otolaryngology, Massachusetts Eye and Ear Harvard Medical School Boston Massachusetts USA

2. Division of Otolaryngology–Head and Neck Surgery Brigham and Women's Hospital Boston Massachusetts USA

Abstract

AbstractAccess to cochlear implantation can be restricted by financial burden, and little is known about the extent to which cochlear implant (CI) devices prices may vary between hospitals or manufacturers. We performed a cross‐sectional analysis of private payer‐negotiated prices for CI devices. In total, 161 hospitals were analyzed. Prices varied widely across hospitals and between payers. Despite clinical equipoise between manufacturers with regards to CI user outcomes, significant differences in prices were identified, with higher prices for MED‐EL ($38,478 ± 2633) than for Cochlear Ltd. ($34,150 ± 2418, p < .001). Markup analysis for Cochlear Ltd. devices revealed a mean 58.5% ± 7.4% markup in excess of the company's average sales price ($24,649). Negotiated prices were also at least $5000 lower when all 3 brands were offered at the same center (p < .05). Further research examining the influence of patient outcomes and hospital volume on prices are needed.

Publisher

Wiley

Subject

Otorhinolaryngology,Surgery

Reference13 articles.

1. Current Estimates of Cochlear Implant Utilization in the United States

2. Recognition of Speech Presented at Soft to Loud Levels by Adult Cochlear Implant Recipients of Three Cochlear Implant Systems

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4. Turquoise Health. Hospital rates data platform. 2022. Accessed June 11 2022. https://turquoise.health/researchers

5. U.S. Centers for Medicare & Medicaid Services. Documentation and files—national physician fee schedule and relative value files. U.S. Centers for Medicare & Medicaid Services. 2022. Accessed July 4 2022. https://www.cms.gov/medicare/physician-fee-schedule/search/documentation

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