Hospital buyer's responses to anti-competitive behaviour

Supply markets for hospitals are characterized by high market concentration, which indicates a risk of anti-competitive practices (ACPs). This study has considered ACPs from the stand-point of practitioners in the hospital sector who are confronted with them and investigated strategies aimed at mitigating such practices. Nine purchasing professionals from hospitals in the Netherlands have been interviewed. Using the Critical Incident Technique (CIT), data on 31 instances of anti-competitive practices were gathered. Hospital purchasers are facing powerful suppliers, who are attempting to increase their power over the hospital and exploit this position, which leads to supply risks and increased costs. In response, actions taken by respondents were aimed at reducing internal dependencies, which increased their ability to change to another supplier or the substitutability of a product. However, there was also a sense of powerlessness amongst purchasers, which led to strategies to safeguard against abusive behaviours.