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A consortium for purchase of blood products directed by physicians

L M Aledort1, R A Lipton, M Hilgartner

  • 1Mt. Sinai Medical Center, New York.

Annals of Internal Medicine
|May 1, 1988
PubMed

Insights

Physicians formed a consortium to lower clotting-factor concentrate costs for hemophilia treatment. This collaborative purchasing strategy achieved significant price reductions and savings for patients and hospitals.

Area of Science:

  • Hematology
  • Health Economics
  • Healthcare Management

Background:

  • Clotting-factor therapy represents a substantial expense in comprehensive hemophilia care.
  • Managing the high cost of clotting-factor concentrates is crucial for patient access and healthcare sustainability.

Purpose of the Study:

  • To evaluate the effectiveness of a physician-led consortium for the centralized purchasing and regional distribution of clotting-factor concentrates.
  • To determine the impact of this model on pricing, cost savings, and overall efficiency in hemophilia treatment.

Main Methods:

  • Formation of a physician consortium in New York for collaborative purchasing of clotting-factor concentrates.
  • Implementation of a bidding formula to secure the lowest prices for quality products while ensuring supplier participation.
  • Establishment of a central distribution system for regional delivery to participating hospitals.

Main Results:

  • The consortium successfully maintained and, in some cases, reduced the prices of clotting-factor concentrates annually.
  • Estimated regional savings exceeded $750,000 for an anticipated purchase of 60 million units of clotting factors VIII and IX.
  • Centralized distribution led to additional cost reductions for participating hospitals, offering competitive prices nationwide.

Conclusions:

  • A physician-directed regional purchasing consortium can effectively lower the cost of expensive medical products like clotting-factor concentrates.
  • This collaborative model offers significant financial benefits to patients, third-party payers, and healthcare institutions.
  • The consortium's success suggests a transferable strategy for managing costs in other clinical areas requiring high-cost therapies.

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