Existing Suppliers Pummeled in Round 1 Rebid

A new analysis by Dr. Peter Cramton demonstrates the harm done to existing suppliers in the Round 1 Rebid.  For example, in the Pittsburgh CBA existing suppliers won none of the contracts for CPAP devices, hospital beds or mail order diabetic supplies and only 11% of the contracts for oxygen supplies and equipment. 

Across the nine CBAs, existing suppliers won half of the oxygen contracts but only 25% of the hospital bed contracts, 23% of the enteral nutruient contracts and 16% of the contracts for complex rehabilitative (Group 2) power wheelchairs.

Attached is Dr. Cramton’s analysis.

cramton-change-in-market-structure