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The Realpolitik of the Device Industry

Executive Summary

After years of criticizing medical technology advances as a cause of rising healthcare costs, many health policy experts and economists are coming around to the view that technology can reduce costs. But such a positive view of technology is worthless if hospitals won't pay a reasonable price for products. A recent New York Times article blasted hospital group purchasing for blocking access to new technology. But it was wrong--the real danger is that group purchasing is destroying hospitals' access to products that already exist.
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