Resmed To Raise Internet CPAP Prices 40%

Wulfman wrote:I think sending that link to our congressional and senate representation would be a good idea and asking them if that constitutes "price fixing". I also think sending that link to any trucking websites might be a good idea, too.

Jstevens75 wrote:Will everyone call their investor relations PR guy at

1-858-357-5810 (not sure about the number, but I think it is right)

Jack

Snoozin' Bluezzz wrote:

OwlCreekObserver wrote:Well, I'm sure that the free market will resolve this issue. If a Resmed product is priced 40% higher than a comparable Respironics product, where do you suppose the money will go?

This presumes three things - the market is truly free with relatively easy entry (and exit but exit is always easy), no explicit, or implicit, collusion to fix prices and connected to point two, that Respironics will sustain that 40% differential (slight to no chance IMO).

As Bill said - how long do you expect Respironics to hold the line when on-line makes up just a small portion of their market? Not long I'll bet. Resmed gets 40% more on-line Respironics will not sell that much more, in that market, at their lower price to incent them to keep prices down.

When talking about "big" players, describing this country as a "free market" based country is silly IMO. Barriers to entry are extremely high because of cost and chronic anti-competitive practices between businesses and through the exercise of political clout. The best government money can buy.

David

It has come to my attention that ResMed corporation, 14040 Danielson Street,Poway CA 92064-6857, has publicly announced an intention to implement a policy starting in August the end result of which is to defraud insurance providers and consumers, including Medicaid and Medicare, by artificially maintaining the inflated rates that these providers are charged for their products. They intend to do this by implementing a 40% surcharge on internet sales of their product. The following quote is from an article published at Investor's Business Daily:

"The Centers for Medicare and Medicaid Services recently declined to extend reimbursement to cover a new "automatic breathing algorithm" feature, which adjusts the air pressure when the patient exhales.

At the same time, ResMed has struggled to control cut-rate sales of its products over the Internet. In August the firm plans to implement a 40% price increase on Internet prices to get them in line with reimbursement rates."

Please reference the entire article at http://www.investors.com/editorial/IBDA ... e=20060620

This act of price gouging and price fixing should be cause of alarm to everyone involved in the consumption of medical equipment, especially insurance providers.

Many of us who rely on this equipment out of medical necessity turn to internet providers to purchase equipment, often out of pocket, because MANY of the "brick and mortar" medical equipment provider provide such poor service that they are unable or unwilling to meet our needs. To make up for their inability or unwillingness to provide quaility service, they charge us or our insurance (and often both) EXTREMELY over inflated prices.

Please look into whether these actions, if implemented, will constitute fraud against consumers and insurance providers, especially government funded Medicare and Medicaid.



Thank you for your time.

Rastaman wrote:
This means Resmed should be losing market share unless their name is SO POWERFUL that they're not. And if that's the case, how do they do it? How does 4 out of 5 people pick Respironics and the other companies still do even remotely well? That's the question. Or is this just a recent thing? Is C-flex not that old and Resmed had the lion share before but they're slowly or quickly losing it?