Medical Device Pricing Benchmarking – GPO & IDN Contracts
Executive Summary
A medical device manufacturer needed to understand competitor pricing inside GPO and IDN contracts. Proactive’s primary research with physicians and buyers exposed aggressive GPO pricing and flexible IDN incentives. The client adjusted pricing tiers, strengthened negotiation, and increased contract wins.
Business Question
How do competitors price medical devices across GPOs and IDNs, and where should the client adjust?
Research Approach
Primary research with physicians, purchasing officers, and competitors; a pricing model compared list-to-net discounts by SKU.
Key Findings
- Structures varied by customer size and volume commitments.
- GPO pricing was more aggressive than expected; IDNs often included non-monetary incentives.
- Client pricing lacked flexibility for volume-based tiers.
Business Impact
The client revised pricing tiers, improved transparency and negotiation stance, and won more GPO contracts across lines.
