Medtech Insight is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By



This article was originally published in The Gray Sheet

Executive Summary

MANAGED COMPETITION HEALTH CARE PLAN ENDORSED BY HIMA BOARD at a March 28 meeting held during the association's annual meeting in Palm Beach, Florida. The board of the Health Industry Manufacturers Association "came out in favor of managed competition, at least conceptually," HIMA President Alan Magazine reported at a same-day general session. He added that "the real question is what are the details going to look like," pledging that HIMA is "going to work hard to make sure they come out the way we think is appropriate." The HIMA board also endorsed a "standard benefits package based on broad categories of care to accommodate technology improvement," HIMA representative Stuart Eizenstat said at a March 29 hearing of the Clinton Administration's Health Care Task Force. During his speech in Florida, Magazine expressed concern about a benefits package that may exclude some types of technology. Magazine also mentioned several other possible elements of a managed competition health care reform program that HIMA must be prepared to address. For example, health spending caps would limit funds available for technology purposes, and purchaser consolidation could lead to "less duplication of technologies and greater price sensitivity," he said. In addition, purchasers may be "more hesitant to buy technology" as they adjust to a new system. A principal thrust of HIMA's lobbying effort regarding health care reform is to "set the record straight" on the cost of medical devices, Magazine said. "Yes, many technologies are expensive and, when used widely, even low-priced technologies can raise costs. But many, including government, give too little credit to technologies that reduce treatment costs or provide long-term savings." He noted that a recent study sponsored by the Health Care Technology Institute found that average annual price rises for medical equipment have been slightly below the overall inflation rate (see story, p. 6). Incoming HIMA Chairman Edward Hartnett, company group chairman at Johnson & Johnson, said in his March 30 inaugural speech that "managed competition will work best if it places a premium on outcomes research." The medical device industry "can support such a system if it fairly and objectively measures the relationship between technology and cost," Hartnett asserted. In addition to Hartnett, the HIMA officers for 1993 are: Chairman-elect William Zadel, president of Ciba Corning Diagnostics, and Treasurer Lawrence Cohen, chairman, president and CEO of Lumex. Six new board members also were elected to three year terms. They are: Anthony Cook, president of the health care domestic division of PM Company; Eleanor Gackstatter, president and chief operating officer of Meadox Medicals; John Haddock, vice president and general manager of the marketing and engineering division of GE Medical Systems; Thomas MacMahon, president of the diagnostics group of Hoffmann-LaRoche; George Oram, president of Biomatrix; and Robert Strauss, president and CEO of Cordis.

You may also be interested in...

Rx List Price Inflation Penalty Endorsed By US HHS Secretary

Senate Finance Committee’s approach to penalize companies for raising WAC list prices is not a ‘price control,’ but a reasonable approach to change the incentives that distort pricing in the supply chain, US HHS Secretary Alex Azar says.

Generics Approvals Will Decline, US FDA Predicts, But Supplement Work May Grow

With the pre-GDUFA backlog largely acted upon, the FDA expects ANDA approvals to decrease, but supplement actions to increase in FY 2020 and FY 2021.

US FDA Puts All China Drug Inspections On Hold Due To Coronavirus Outbreak

February and March inspections deferred unless any are deemed mission critical. China director remains behind as staff evacuate.




Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts