September 26, 2016
Collusion between bidders
Suppliers may divide different contracts in a nation or region between themselves. While giving the appearance of a competitive tender process the suppliers will have determined in advance which supplier will win a contract. Crucially suppliers can confer to collectively set their prices. In both cases the overall aim is to increase the amount received by the suppliers, which will result in products being bought at an artificially high price and wasting healthcare funds.