Trade group says conflicts negate GPOs’ leverage

About Andrew Van Dam

Andrew Van Dam of The Wall Street Journal previously worked at the AHCJ offices while earning his master’s degree at the Missouri School of Journalism.

A recent GAO report looked at group purchasing organizations and established that they were pervasive, and that they’d adopted some internal ethics rules. It did not, however, substantially evaluate charges that GPOs can increase cost and stifle innovation.

However, a medical device trade group picked up where the GAO left off. According to a study published last week by the Medical Device Manufacturers Association (53-page PDF), repealing the special GPO exemption to a general ban on kickbacks in situations where federal health spending is involved would result in as much as $25 billion in annual savings. The study’s a quick, forceful and engaging read, but it comes, of course, from an organization that clearly has a dog in the fight.

The Health Industry Group Purchasing Association, a trade association representing 16 GPOs, has – not surprisingly – a different view,  evidenced by its website, GPOsSaveMoney.org.

(Hat tip to the AP)

2 thoughts on “Trade group says conflicts negate GPOs’ leverage

  1. Tot T

    The study’s authors are respected economists, including Dr. Robert Litan, senior econ fellow for the Brookings Institution. The commissioner may or may not be biased- but the authors are not- and they conducted the analysis.

    Look for both parties and the Obama administration to pick this up immediately after the election.

  2. Medical Group Purchasing Organization

    Group Purchasing Organizations have established themselves as an important resource in the purchasing sector. the leverage and purchasing power they offer small companies can be a tremendous asset.

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