What is an Open House Procedure?
The Open House Procedure is a special form of procurement primarily used in the healthcare sector, particularly by statutory health insurance funds (GKV) in Germany. Unlike traditional procurement procedures, there is no competitive selection: all companies meeting the specified conditions can conclude a contract.
Legal Basis
The Open House model is based on the CJEU ruling of June 2, 2016 (Case C-410/14 – "Falk Pharma"). The Court clarified that an Open House arrangement is not a public contract under EU procurement directives, as no selection between bidders takes place.
How It Works
- Publication: The health insurance fund publishes a notice (often on TED), although there is no legal obligation under procurement law
- Identical conditions: All pharmaceutical companies receive exactly the same contract terms
- No selection process: No evaluation or ranking – every qualifying company gets a contract
- No quantity limits: The contracting authority does not limit the number of partners
- Open entry: Companies can join at any time during the contract period
Distinction from Discount Agreements
| Criterion | Open House | Discount Agreement (§ 130a SGB V) |
|---|---|---|
| Selection | None – all can join | Competitive procurement |
| Conditions | Identical for all | Individually negotiated/bid |
| Procurement law | Not applicable | Fully applicable |
| Exclusivity | None | Usually exclusive (1-3 awards) |
| Price | Set by contracting authority | Offered by bidder |
Application Areas
- Generic drug supply for active substances with many suppliers
- Vaccine supply
- Medical devices and aids
- Laboratory diagnostics
- Framework agreements for consulting services
Advantages and Disadvantages
Advantages:
- Quick implementation without complex procurement procedures
- Supply security through many contract partners
- No risk of review proceedings at procurement chambers
- Flexible entry for new providers
Disadvantages:
- No price competition – conditions are dictated
- No quality differentiation between providers
- Potentially less favorable prices than with genuine competition
Patterno Helps
With Patterno-HIT, you never miss Open House announcements. Our AI monitors all relevant platforms and notifies you in real time. For pharma companies, Patterno-BID additionally provides automated diff-checking to compare new contract conditions with existing terms.