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Efficiency of Procurement Procedures for Medical Devices

Author

Listed:
  • Calogero Guccio

    (Università "Mediterranea" di Reggio Calabria)

  • Giacomo Pignataro

    (Università di Catania)

  • Ilde Rizzo

    (Università di Catania)

Abstract

The paper investigates the efficiency of procurement for medical devices. Differentiation of products in this market, due to doctors' preferences for specific technologies, might reduce the number of suppliers and the potential positive impact of auctions relative to negotiations. Using a large official dataset on technological equipment purchased by Italian hospitals in the period 1995-2005, we run an empirical analysis of the differential impact of procurement procedures on the purchasing price, controlling for several factors like product differentiation and number of suppliers. The policy implication is that incentives are needed for managers and doctors when auctions cannot ensure efficiency in procurement.

Suggested Citation

  • Calogero Guccio & Giacomo Pignataro & Ilde Rizzo, 2006. "Efficiency of Procurement Procedures for Medical Devices," Rivista di Politica Economica, SIPI Spa, vol. 96(1), pages 135-158, January-F.
    • Handle: RePEc:rpo:ripoec:v:96:y:2006:i:1:p:135-158
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    Citations

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    Cited by:

    1. Vincenzo Atella & Francesco Decarolis, 2024. "Procuring medical devices: evidence from Italian public tenders," International Journal of Computational Economics and Econometrics, Inderscience Enterprises Ltd, vol. 14(2), pages 103-121.
    2. Massimo Finocchiaro Castro & Calogero Guccio, 2021. "Does greater discretion improve the performance in the execution of public works? Evidence from the reform of discretionary thresholds in Italy," Working papers 108, Società Italiana di Economia Pubblica.
    3. Finocchiaro Castro, Massimo & Guccio, Calogero & Pignataro, Giacomo & Rizzo, Ilde, 2014. "The effects of reimbursement mechanisms on medical technology diffusion in the hospital sector in the Italian NHS," Health Policy, Elsevier, vol. 115(2), pages 215-229.

    More about this item

    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General

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