Resmed officially raising prices

[Rastaman]

Oh and please correct me if I'm mis-reading this. Do you think all the other companies, including Respironics will follow the "big dog's" example? Or not?

Discuss.

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CPAPopedia Keywords Contained In This Post (Click For Definition): respironics

[bluesky]

Interesting article about Resmed's reasons for changing pricing for internet suppliers.

Now I'm very confused, as I'm trying to figure out what kind of follow up and service I received from my original suppier when they billed my insurance company for $2,800 2 1/2 years ago when I received my APAP. I noticed CPAP.com currently has it for $709 - Lets see, the DME got me the machine, programmed it wrong, gave me a mask that didn't fit, then charged me for the second one when I picked up a different mask a week later - All that for an extra $2,000+. Seems like Resmed's real plan is to bow and worship the great Kahuna of the DME suppliers and their great service and follow up to help them maintain their gouging.

Sure hope the internet suppliers don't disappear, as I would really dislike going back to my former supplier and paying a huge premium for that great service I receive from them.

[Guest]

Resmed really screwed up on this PR move. They already admitted the price increase is to get internet prices in line with reimbursement rates.

Now they're trying to cover their butts by saying the price increase is because they are worried about follow up care and compliance.

Too late. We already know the real reason.

Resmed, your greed is showing. Too bad your integrity isn't.

[Sleepy-in-AL]

Oh and please correct me if I'm mis-reading this. Do you think all the other companies, including Respironics will follow the "big dog's" example? Or not?

Discuss.

If they are allowed to get away with it, yes I believe other manufacturers MAY follow their lead. That is one reason I have been pro-active in pursuing the legal and political avenues on this.

However, I don't consider ResMed to be the "big dog." They are one of the big players but look around this board. Its not just for Jiff Peanut Butter anymore the new slogan is "people who choose, choose Respironics." Especially when it comes to APAP. I know this forum represents a small percentage of apnea sufferers, unfortunately. However, it is very representative of those who are informed and ready to take an interest in their therapy and overwhelmingly the choice is Respironics. I'm not saying that the others don't make good products or that they aren't "better" for some people.

Look at cpap.com sales numbers: https://www.cpap.com/cpap-user-preference.php

According to these sales numbers, PB is number one, Respironics is two and ResMed is down in the noise around number 5. This applies to both machine and mask preferences.

[oldgearhead]

Wouldn't it be cool if the manufacturer of the Hybrid mask and F&P
would add a surcharge for the bricks-and-mortar stores.

[Sleepy-in-AL]

Wouldn't it be cool if the manufacturer of the Hybrid mask and F&P
would add a surcharge for the bricks-and-mortar stores.

Now that would be a hoot! I did find it interesting that none of the local hybrid "distributors" have any idea what it is, much less have it.

[mousetater]

“ResMed plans in September to implement strict new quidelines--including mandatory minimum pricing”

"In addition to strictly enforcing its suggested retail price, ResMed expects Internet providers to use marketing material as intended, not to resell products intended for the U.S market internationally and to offer education, information and a support team that patients can contact for help."

So, ResMed REQUIRES the price to be increased, but only EXPECTS the online retailers will use that additional income to provide support. Why not require proof of support in the form of a help line number, etc. and let the online retailer decide how much they might need to increase their prices to cover that. It would be more believable then that ResMed was concerned about the patient/end user.[/quote]

[neversleeps]

Tracy Nasca is senior vice president of Talk About Sleep, a resource Internet site for people with sleep disordered breathing that also sells CPAPs. ResMed's new policy, she said, levels the playing field. Some Internet retailers sell products for less than she can buy them.

"We don't offer our retail store just to make a buck," she said. "Or mission is to provide education, information and support. That is the difference between my organization and people who inventory things in their basement and extra bedrooms and just sell on line."

Now there's a novel idea! I'm off to clear out my basement and extra bedrooms and buy up every piece of Resmed equipment I can get my hands on before they raise their prices. Then I'm going to hold on to it until the increase is in effect and I'm going to turn around and sell it at the higher price. Think of my profit margin! Then I'll publicly brown-nose and kiss up to the manufacturers and insult other online suppliers. I can hardly wait!

I think I'll call my company Sycophant Cpap Retail Equipment Worldwide. I may even consider becoming a brick and mortar DME so I won't have to bother with any of that silly education, information and support nonsense. It’s all still in the planning stages, though. I’ll let you know when it gets off the ground. Apria, watch out!!!!

[mikemoran]

Follow up care? Is that where they pat you on the back and send you out the soor with the machine and some typed pages with cleaning isntructions?

Compliance? Oh thats when you come in after a month so they can see you turned the machine on.

Since most of us don't start out with internet machines. I would kind of surmise that the people willing to pull cash out of their own pockets rather than fight insurance probably are trying real hard to be compliant.

Oh and before I go, this is just another reason I never post on TAS. They always get too much involved on their board and doesn't suprise me they are shills for the manufacturers.

[Rastaman]

I guess I picked a fun time to get into the CPAP game. I like those stats for cpap.com! Those are very enlightening. I'm sure that with internet sales at only 5% people buying them online are a small percentage of the total marketplace. But DME's are shipping out whatever they sell left and right too. This is just one of those things where we're all going to have to sit back and see what happens. I have a strong feeling that Respironics is going to follow suit though "in our best interests" because the extra profit would pay for another CEO or two or other high up position at 268 times the average worker's wage. But if not, then they'll probably OWN the market within several months, causing goofballs Resmed to reduce their price after their major mistake.

What we can't see is what Resmed's sales are compared to the others nationwide/worldwide. That's what we need to see. We need to see if Respironics is similar to how big MCI is compared to AT&T. Sure, lots of people use them but is it only 15% nation/world-wide? If so, then that changes things a bit. Will they follow suit? I don't know. We just have to wait and see.

The funny thing to me is that I'm charged a copay (inplying a billing to my insurance for LOTS of money each visit) each time I go to the sleep doc/dme. Not for basic things but if I have an appointment. And since I'm paying for all of that (either me or my company is) I don't see why they're charging more than $500 to $800 for a CPAP. It's unjustified! They're not really providing me ANYTHING for that extra money. Double or triple price just for profit sake is stupid. But what are we going to do? Go without therapy? That's what they KNOW. They KNOW they've got us. But guess what? People DO sell these things on the open market. They sell them used. And I would buy one used before I would go through my DME. And I would buy one through https://www.cpap.com before I would do that IF the price is reasonable by comparison. But if not, if it's 40% more, then I'll go with a used item. But will the company lose out? No. Companies have always had the upper hand with the public because the public isn't well networked and even if they were, they don't seem to be on the same page.

[Wulfman]

What I keep wondering is that if the Internet sales only constitute roughly 5% of the total sales, why is this such a big issue with ResMed?
I'm thinking there might be a lot more of the other 95% that have become more "informed" by browsing the sources on the Internet and are complaining about the situation.....possibly even insurance providers.
If Respironics, PB, F&P, and others don't go the same route, ResMed will lose a serious amount of market share.....and credibility with their "END" users.
I just know they won't get any more of MY money if and when they impose the price increases..

Den

[Sleepy-in-AL]

The Internet is a wonderful thing. I did a Yahoo! search and found this: http://www.nctimes.com/articles/2005/07 ... _16_05.txt

Between ResMed and Respironics it claims they have 75% of the worldwide market. Then it goes on to say that ResMed has 30% of the US market. It doesn't say what Respironics US market share is or specifically what eithers world market share is though.

Respironics MAY follow ResMed's lead in this if the backlash isn't too much or if no legal action results. But there are other manufacturers who will be more than glad to slide in and fill the gap. Puritan Bennett is cpap.coms top straigt CPAP seller and second APAP and BiPAP seller. I predict that the hybrid will quickly top all other internet mask sales put together.

One thing most of us agree on though, this is NOT about patient care or compliance! It is about profit and nothing more. They certainly have the right to maximize profits (and even the obligation) so long as they do it ethically and legally (and this is borderline at best). Just don't lie to me and tell me its for my own good.

If they want to improve service and compliance, set policies that will result in these goals. Here are some examples of policies I would love to see. But I'm sure that the DMEs would find a way to mess this up too.

1. Make it mandatory for the dispenser to complete a followup questionaire with the patient after some number of days. This would provide the DME and the manufacturer valuable market research and give the patient an opportunity to discuss problems they are having.

2. Require that all RTs dispensing their equipment actually be trained IN DETAIL on the functions, configuration, and patient demonstration of their specific equipment.

3. Require that all dispensing DMEs offer a 2 week follow-up to read data from the equipment to determine that things are functioning as expected. For instance, is the average leak rate within the tolerance level for the particular mask? Are there any large leaks? Are there numerous leaks?

4. Respond to E-Mail sent to their public relations e-mail address whether it be positive or negative.

5. Require that dispensing DMEs provide a 24 hour hot-line for therapy related problems.

Any or all of these policies could positively impact patient care. I predict you won't see any of them implemented because DMEs don't get paid any extra for providing service or caring. They get paid UCR charges for product codes nothing more. I like others here advocate separate billing for RT time. But not while they still charge extremely over inflated rates for equipment.

[mousetater]

I have a question. ResMed says they want the online prices raised 40%. But they didn't say they were going to charge the online DME 40% more. They said/implied they wanted prices to even out compared to brick-and-mortar locations. So, will the additional profit go to ResMed, or the online DMEs?

[wading thru the muck!]

I have a question... So, will the additional profit go to ResMed, or the online DMEs?

It said they were going to enforce minimum retail pricing... so most likely the add'l profit will go to the retailers that observe the minimum pricing.

BTW... I think it is ironic how the very deficiencies that ResMed claims the online providers have is what most of us have experienced with the Brick & Mortar DMEs. It's a fact that the best DME for after sale support and education is cpap.com... IMO that can not be disputed.

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[Rastaman]

This whole situation is just undesireable. I mean the whole DME thing charging outrageous prices. But even worse, my Doctor is probably charging way more for equipment than he has to. He's probably charging more for services too. These rates are all approved by the American Medical Association which is influenced by lobbyists support the doctors and medical community. I just don't like the idea of my health care being "for sale" like this. It's life or death. And they're making money left and right from it. A reasonable profit is one thing. But what insurance and uninsured people pay is beyond ridiculous! And that's only part of the issue.

One of America's biggest problems is top heavy companies. Paying the guys at the top 262 times the lowest paid worker has caused companies left and right to rip off the consumer. Some products are at fair prices. But the whole game is starting the price at a super high level and slowly decreasing. That doesn't always happen. But it makes YOU think that you're finally getting a good deal even though the item might cost $100 to make and costs $3000 to buy one.

I'd rather go without therapy than pay some of these prices. Sure, my insurance is great and all but they're fools. They should be paying a reasonable rate. If I'm going to pay THIS much, I should have a 20 year warranty. Or atleast a 10 year warranty.