Price of linear accelerators jumps 20%

The average prices paid for linear accelerators, which use radiation to treat patients with cancer, rose 20% from April to May, in part because of more hospitals buying highly configured systems, according to the latest Modern Healthcare/ECRI Institute Technology Price Index.

The TPI index looks at monthly and annual price data for about 30 supply and capital items purchased by hospitals and other healthcare providers, based on three-month rolling averages.

It found that the average prices for linear accelerators rose to $2.8 million, the highest point for the year, but remains in the $2.4 million-to-$3.0 million range reported over the past year and a half, according to analysts for the ECRI Institute. Prices rose about 10% over the past year.

The increase reflects that more hospitals are configuring their systems with stereotactic body radiation therapy add-on technologies used in the treatment of extracranial tumors, said Kevin Lee, senior analyst in ECRI's healthcare technology advisory service.

Systems configured with SBRT add-ons usually cost about $3 million but can cost up to $4 million.

Several other factors are also at play in the rising costs of linear accelerators, according to Lee and Jason Launders, ECRI's health devices senior project officer.

Hospitals are becoming more willing to invest in technology as reimbursement becomes more predictable. The equipment has become more integrated and advanced, which tends to lead to higher prices. And, the market that develops these technologies has consolidated, putting primarily two vendors—Varian Medical Systems and Elekta—in position to bundle the technology and add-ons and raise costs.

“The technology has been evolving very rapidly,” Launders said.

Follow Jaimy Lee on Twitter: @MHjlee