Suppliers could increase medical supply prices this year following a drastic jump in the price of cotton, according to a DOTmed News report.
Devastating storms have destroyed cotton fields in various parts of the world, driving cotton prices to historic levels — $1.60 per pound in late December compared to 84 cents per pound in August. According to the report, medical supply costs are likely to rise as suppliers feel the impact of the rising prices.
Shawn Fleming, portfolio executive for Novation, told DOTmed News that he expects Novation to pass the price increase onto members by the middle of 2011. The GPO launched a "very aggressive" contract haggle with a supplier this year and does not expect prices to return to their normal level.
Read the DOTmed News report on medical supplies.
Read more on medical supplies:
-7 GI/Endoscopy Devices Receive FDA Approval
-Report Suggests Medical Device Market Will Surge to $312B This Year
-4 Ways to Streamline Supply Chain Costs
Devastating storms have destroyed cotton fields in various parts of the world, driving cotton prices to historic levels — $1.60 per pound in late December compared to 84 cents per pound in August. According to the report, medical supply costs are likely to rise as suppliers feel the impact of the rising prices.
Shawn Fleming, portfolio executive for Novation, told DOTmed News that he expects Novation to pass the price increase onto members by the middle of 2011. The GPO launched a "very aggressive" contract haggle with a supplier this year and does not expect prices to return to their normal level.
Read the DOTmed News report on medical supplies.
Read more on medical supplies:
-7 GI/Endoscopy Devices Receive FDA Approval
-Report Suggests Medical Device Market Will Surge to $312B This Year
-4 Ways to Streamline Supply Chain Costs