Regulation, competition and prices in health product markets

Abstract

Objective: The present article reviews the recent literature on various issues related to medical devices in Spain, Europe and global market in general. This evidence allows us to analyze the Spanish situation, and to propose recommendations about health policy that look for improvements in efficiency and social welfare. Methods: Information obtained from several official and entrepreneurial sources, technical reports and scientific literature produced in the last 5 years were used. Results: Regulatory controls for medical devices in Europe have more an industrial than health care perspective, high-lighting, as weakest link, the low post-commercialization vigilance systems. In Spain the medical devices suppliers, 6.1% of total health care spending, would to make price collusion, exercising their market power, paying the Administration the possible cost overrun. The market concentration is increasing at global level by means of companies' acquisitions and absorptions that enlarge the commercialization range of products for sale and the economies of scope. On the other hand, the purchase processes in the SNS hospitals, by means of publics contests, has been more opaque with sanitary transfers. Conclusions: In Spain there is an alarming lack of information as well as deficient analysis of medical devices sector. It is necessary to articulate policies about the competition in this sector, and to take a national registration of prices in all publics institutions of the SNS, with the object to avoid collusives practices.