Sen. Grassley Demands GPOs Prove They Save Money for Hospitals

Tags: GPOs | group purchasing organizations | Sen. Chuck Grassley

Following a new study on group purchasing organizations by the Government Accountability Office, Sen. Chuck Grassley (R-Iowa) said he wants proof GPOs save money for Medicare and Medicaid, according to a release by Sen. Grassley.

"There is no empirical data that GPOs provide any savings for Medicare and Medicaid," he said. "There’s no data with which to independently verify the effect, one way or another, and that’s a shortcoming in the current system."

The GAO report said hospitals increasingly rely on GPOs as the principal way to keep supply costs in check. Almost 10 years ago, GPOs were accused of collecting excessively high contract administrative fees and other potentially anti-competitive practices.

Read the release from Sen. Grassley on GPOs.


Read the GAO report on GPOs (pdf).
http://www.gao.gov/new.items/d10738.pdf

Read other coverage on GPOs.

- GAO Releases Study on GPOs: 10 Key Points

- 8 Largest Group Purchasing Organizations for Hospitals

© Copyright ASC COMMUNICATIONS 2012. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.