SURGICAL PRICE CHANGES ON MEDIKREDIT’S NAPPI DATABASE
(Period: August 2007 to June 2008)
The MediKredit-maintained NAPPI price file contains product and price information on both surgical and nonsurgical products. The prices on the file are supplied to Medikredit by the manufacturers and/or suppliers of the
products listed. Because Medikredit is responsible for the maintenance and updating of pricing and product
information, we have the ability to track price movements over time.
The purpose of this analysis is to represent what is on the NAPPI price file for surgical products during the period
August 2007 and June 2008.
The analysis contains all surgical prices from all manufacturers and suppliers. No adjustment have been effected for
currency and CPI fluctuations. The price data are not weighted by claim volumes and Nett Acquisition Price file
prices are not accounted for. As a result these are not necessarily the prices charged to the hospitals and medical
schemes.
On the NAPPI price file, surgical products are classified into 25 high level categories of surgical classification (e.g.
Bandages, Syringes, Needles and Lancets, Implantable Products, Catheters, Wound Care, Instruments, etc). As at
the 30th June 2008, 110 162 surgical products were active on the NAPPI database. The constant movement on the
NAPPI price file is evidenced by the number of products introduced and discontinued between August 2007 and
June 2008: 19 697 new products were introduced into the SA market; 8 199 products were discontinued; and 380
products were introduced and then discontinued in the 11-month period.
Table 1 (below) shows that of the surgical products in the market 48% of products that were on the price file for
the entire review period had price increases, <6% had price decreases and 4% had both price increases and
decreases. In addition, 23% of new products had price increases and 5% had price decreases. Almost 2% of
products that were discontinued experienced price increases before being discontinued.
Table 1: Product and price movements between August 2007 and June 2008
Product Summary
Total
Products
#
Products with
Price Increases
#
%
Products with Price
Decreases
Products with Price
Increases &
Decreases
#
%
#
%
Products in existence for the entire
period
90,462
43,392
47.97%
5,212
5.76%
3,662
4.05%
New products introduced
19,697
4,534
23.02%
1,092
5.54%
0
0.00%
8,199
162
1.98%
134
1.63%
2
0.02%
380
18
4.74%
2
0.53%
0
0.00%
110,162
48,106
43.67%
6,440
5.85%
3,664
3.33%
Products discontinued
New products introduced and
subsequently discontinued
Total active products on Surgical
NAPPI database as at 30th June 2008
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Figures 1a-1c depicts an analysis of the absolute price differences between August 2007 and June 2008 per surgical
classification. This was derived by summing all the product prices per surgical classification per month and
subtracting the August cumulative value from the June cumulative value. The analysis only includes products that
were in the market for the entire review period AND that experienced price changes (increase and decreases); not
the entire NAPPI price file.
The highest price increases are seen in Syringes and Needles and Lancets (Fig 1a). While these are relatively lowpriced items, they are claimed in high volumes so the price impact may be very significant when weighted against
claim volumes. Equally, while implantable products only had an 11% increase, on a very high value item this may
have a significant impact on expenditure to schemes.
Fig 1a: % Price difference between August 2007 and June 2008 for products that were in the market for the
entire period and had price changes
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Figure 1b shows price increases that range from 0.04% to 9.85%. Conversely, figure 1c shows price decreases in two
surgical categories: theatre drapes (11% decrease) and protection (19% decrease).
Fig 1b: % Price difference between August 2007 and June 2008 for products that were in the market for the
entire period and had price changes
Fig 1c: % Price difference between August 2007 and June 2008 for products that were in the market for the entire
period and had price changes
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© 2008
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