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GPOs Fail to Provide Hospitals and Patients Health Care Savings
Date:10/6/2010

ces aftermarket, when GPOs supposedly negotiated the best price;
  • In 2010, the savings for hospitals was up to 18 percent for aftermarket purchases.

  • This groundbreaking study follows a 2009 report that showed hospitals could save approximately $8 billion each year if the safe harbor provisions were removed for GPOs.

    GPOs were established to save hospitals money on the purchase of supplies and equipment. For decades hospitals funded these GPOs. However, with the creation of a safe harbor by Congress in 1986, the GPOs became reliant on suppliers for funding.

    The Congressional exemption allows GPOs to legally collect fees from suppliers to whom they award contracts. Contractual arrangements that have evolved between GPOs and their hospital customers frequently exclude competitive medical technologies that could help patients and allow hospitals to reduce costs.

    The full study is available at www.medicaldevices.org.

    MDMA is a national trade association based in Washington, DC, representing hundreds of innovative, entrepreneurial companies in the medical device industry. MDMA seeks to improve the quality of patient care by encouraging the development of new medical technologies and fostering the availability of innovative products in the marketplace.


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    SOURCE Medical Device Manufacturers Association
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