The study, titled “Do Group Purchasing Organizations Achieve the Best Prices for Member Hospitals? An Empirical Analysis of Aftermarket Transactions,” suggests repealing the safe harbor statutes passed by Congress in 1986 would reduce private U.S. healthcare spending by up to $25 billion a year.
Additionally, aftermarket transactions show that GPO member hospitals and healthcare providers could save up to $37.5 billion annually.
The study was conducted by economists Robert Litan and Hal Singer, who analyzed equipment pricing gathered over a ten year period by MEMdata, a firm hired by hospitals to assist in the procurement of equipment using an open, competitive auction process.
Curtis Rooney, president of the Health Industry Group Purchasing Association, challenged the results of the study today in a statement that said examinations by the Government Accountability Office, Federal Trade Commission, Department of Justice and the 8th Circuit Court of Appeals found GPOs save hospitals money.
Mr. Rooney wrote, “No amount of reckless MDMA propaganda can change the fact that the $200 billion medical device industry and its largest manufacturers are the only parties that stand to benefit from changing a working, competitive GPO market.”
Read the MDMA news release on the GPO report.
Read HIGPA President Curtis Rooney’s response to the MDMA report.
Read more on GPOs:
–7 Key Elements Hospitals Should Consider When Selecting a GPO
–GAO Releases Study on GPOs: 10 Key Points
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