Sleep Industry Manufacturers At War With Internet Suppliers

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Sleep disorder manufacturers have been secretly meeting, in what some call an effort to price fix.

According to ranking officials within the Sleep Disorder Industry, a round table is being created to effectively destroy free market pricing. The Sleep Disorder Industry manufacturers market and distribute products designed to treat symptoms of Obstructive Sleep Apnea (OSA).

During a secret meeting held last week at the semi-annual trade show, Med-Trade, in Las Vegas, ranking officials from the leading manufacturers of sleep products have decided to join forces to set “new standards for the industry." One of these “new standards” will include eliminating the trade of their products to Internet companies selling their merchandise at low prices. Their argument is that the numerous sites selling the products are flooding the market, which in turn is driving down the prices and insurance reimbursement levels. Manufacturers fear that if competitive pricing is allowed to continue their profits will be significantly impacted.

Their opponents, including merchants on the Internet specializing in sleep disorder devices, argue that the manufacturers are already making healthy profits on the products. These merchants feel the manufacturers simply do not want to lower the cost to Home Medical Dealers or Insurance Providers. Home Medical Dealers have gone so far as to say that manufacturers fear their products, such as CPAP, could become a commodity, which is affordable to everyone. Many would challenge that this is not a bad thing. However, just like pharmaceutical companies, manufacturers argue that cutting into their funds would impede research and further improvements to the equipment.

Representatives from the major manufacturers will begin mandating pricing structures for Internet based companies, which are in-line with current insurance reimbursement schedules. This is expected to begin within the next few weeks. Failure to comply with the new pricing mandates will result in the loss of the Internet based companies distributor agreement. Internet based companies are accusing the manufacturers of infringing upon laws against price fixing and scheming to reduce their liability. The Internet companies point to this type of behavior for creating the health care crisis and skyrocketing insurance rates that are gripping the nation. They are urging anyone, who will be impacted by the new pricing, to contact their local, State, and Federal representatives to file a formal complaint. At this time it is hard to say what the eventual outcome will be, but higher prices on sleep disorder equipment can be expected in the near future.

CPAP Supplies Plus/Direct is a distributor of CPAP products and related equipment. With over 25 years of combined industry experience, we have grown to become one of the top worldwide distributors of Sleep Apnea related equipment on the Internet. If you would like more information on this issue, sleep apnea or the products available for treating sleep disorders, please contact CPAP Supplies Plus / Direct at http://www.cpapplus.com .

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Roberta Baron
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