Real – World example
Johnson & Johnson, for example, worked hard to change the rate of reimbursement for stents used in angioplasty. The J & J stent was technically superior to others on the market and cost more. However, Medicare paid hospitals the same amount no matter which stent was used. J & J was able to show, using data on 200,000 Medicare patients, that patients using J & J stent were able to avoid a second and third angioplasty. Stent reimbursement increased.