Pricing Policy for Medical Oxygen and Potential Savings

Area of Science:

• Healthcare Management
• Medical Supply Chain
• Health Economics

Background:

• Medical oxygen is a critical component of modern healthcare.
• The COVID-19 pandemic exacerbated challenges in oxygen production, storage, and distribution.
• Significant disparities exist in medical oxygen pricing across different healthcare systems.

Purpose of the Study:

• To analyze medical oxygen pricing and costs in Quebec.
• To compare Quebec's policies with international benchmarks.
• To identify savings potential through optimized oxygen therapy practices.

Main Methods:

• A narrative literature review was conducted.
• Analysis included administrative and financial documents.
• Administrative data from Quebec's healthcare sector representatives were utilized.

Main Results:

• Production, storage, and distribution of medical oxygen present complex challenges.
• Quebec's oxygen costs are influenced by production methods, logistics, and contracts.
• Optimizing oxygen therapy can yield substantial savings by reducing consumption.

Conclusions:

• Medical oxygen cost management is complex, affected by limited competition and rigid contracts.
• International comparisons underscore the importance of robust infrastructure.
• Improving distribution, contract flexibility, and competition can lower costs.
• Managers and clinicians should implement strategies to optimize medical oxygen use.