Respironics minimum pricing policy

Slinky · Post by **Slinky** » Fri Feb 15, 2008 3:27 pm

Regardless the reason, it sure isn't in the best interest of the end users, the patients! We've known this was coming for some time. Since last fall anyway.

Guest · Post by **Guest** » Fri Feb 15, 2008 3:36 pm

There are no other "major" cpap manufactures. Between Respironics and Resmed, they control 80% of the US and world wide market. No Supreme court case has addressed a distribution channel issue where players have such dominate market positions.

Wulfman · Post by **Wulfman** » Fri Feb 15, 2008 3:49 pm

Anonymous wrote:There are no other "major" cpap manufactures. Between Respironics and Resmed, they control 80% of the US and world wide market. No Supreme court case has addressed a distribution channel issue where players have such dominate market positions.

OK.....so, where do you stand on this issue?......I'm a little confused.

We know those two are the big bullies on the block. Who knows.....maybe they DID get together......ResMed decided to go first and now Respironics is following......so it wouldn't have the appearance of collusion.

Seems to me that from the actions of those two companies, the Internet sales (as small of a percentage as they might be) HAVE to be having an effect.

Den

Guest · Post by **Guest** » Fri Feb 15, 2008 4:21 pm

What I am saying is that the Supreme Court has in no way blessed minimum advertised pricing where in effect it removes serious competition within a distribution channel.

Imagine that the courts could or would say that this is legal and that companies can nod and wink their way into a situation that ends up being a monopolistic agreement in practice that supports the business of the dominate players. Think about the ramifications of any ruling that blesses such activities. I believe that there must be some limit to the market share in a give niche that can behave in this manner. If not, the end of a free market system will soon be upon us.

Bottom line is that the Supreme Court has created a monster and the monster is eating the consumer alive. They can and will fix it. They must.

Look at the market share on something like auto cpap in the internet niche. The market share effected is huge. If that is not channel price fixing, what is?

Wulfman · Post by **Wulfman** » Fri Feb 15, 2008 4:29 pm

And, then there's.....Microsoft.....

Den

Slinky · Post by **Slinky** » Fri Feb 15, 2008 5:05 pm

Anonymous wrote: ... Bottom line is that the Supreme Court has created a monster and the monster is eating the consumer alive. They can and will fix it. They must.

You sure have a lot more faith in the Supreme Court that gave us Bush Baby as president than I do!!!!!

TossinNTurnin · Post by **TossinNTurnin** » Fri Feb 15, 2008 5:16 pm

Guest · Post by **Guest** » Fri Feb 15, 2008 5:31 pm

Ahh so no I feel i must update. Like I said earlier, I don't know ALL of the details, however here are a few more things. This information came from my Respironics Rep, and I confirmed yesterday with my purchasing director. They have recieved the contract from Respironics and upper management is reviewing it before they sign.

1. There will be minimum pricing set for masks, he didn't talk specifically about PAP machines, but one could ASSuME that it would apply to them as well.

2. This program applies to wholesellers as well, which was a loop hole in Resmeds policy. That loophole allowed for example Company A to sell Resmed masks to Company B and than Company B could sell them to the public at a price below the minimum pricing set by Resmed since they were not a direct Resmed consumer.

3. The penalty for selling under the minimum pricing.......Respironics will not sell to you for a 12 month period.

4. The policy will not affect prices of masks, PAPs, etc. of companies buying directly from Respironics. So Den is right, this isn't going to generate more revenue for Respironics, though i'm sure somebody will find some convoluted economic equation that says otherwise.

5. The policy will take effect on March 1st, 2008

He also stated that Respironics is already being sued over the policy. He didn't go into anymore details than that.

Take that for what it's worth, like I said I'm not trying to stir the pot. I just wanted everyone to be aware so they could make purchases prior to March 1st if they wanted too. In no way shape or form do I work for Respironics, Resmed, F&P or PB. Nor do I work for CPAP.COM or any other internet CPAP/CPAP supply seller. YES I do work for a B&M DME, though I can almost say with 99% certantity that none of the people reading this thread are my patients.

billbolton · Post by **billbolton** » Fri Feb 15, 2008 7:07 pm

Anonymous wrote:a situation that ends up being a monopolistic agreement in practice that supports the business of the dominate players.

Well, for a start that would be a cartel, not a monopoly!

Anonymous wrote:If not, the end of a free market system will soon be upon us.

If your views were perpetuated it would not be a "free market system" any longer. You can't regulate it and then says its a "free market"

If you want a regulated market environment, please don't pretend it is anything else but "not free"!

Goofproof · Post by **Goofproof** » Fri Feb 15, 2008 7:21 pm

There's always Black and Decker, with a little 200 MPH tape (Duct) and a few valves and a Manometer we can make our own. We can also blow the trash over into the neighbors yards. Jim

Guest · Post by **Guest** » Fri Feb 15, 2008 8:08 pm

akcpapguy you're full of crap and have no idea what you're blabbing about. lol

SleepGuy · Post by **SleepGuy** » Fri Feb 15, 2008 9:29 pm

A concentrated market is called an oligopoly and is at greater risk for collusion and formal or informal price fixing among the dominant suppliers / manufacturers.

http://en.wikipedia.org/wiki/Oligopoly

However, that will create opportunities for smaller companies to price compete with them and capture market share. I doubt that the Supreme Court will act on these issues within the next 10-20 years. Congress can always enact some legislation but short of that, this is called the Free Enterprise System.

In any event, the medical device market is dominated not by direct pay situations but by the insurance industry. Price competition on the consumer level is almost non-existent because such a small share of the market is direct pay. That said, no doubt that the direct pay consumers will be hurt by this development. Insurance companies negotiate their own discounts.

Guest · Post by **Guest** » Fri Feb 15, 2008 9:58 pm

(akcpapguy) There are a few "guests" on this thread. I was the one asking for verification. I very much appreciate your detailed explanation and find that the board as usual pegged you correctly as a valued contributor.

Thanks!

Guest · Post by **Guest** » Fri Feb 15, 2008 10:03 pm

akcpapguy is a fraud.

Guest · Post by **Guest** » Sat Feb 16, 2008 7:04 am

Then present your case or leave us to consider useful posts.

Machine	Mask

Additional Comments: Airmini, Medistrom Pilot 24, CMS 60C Pulse Oximeter, ResScan 6