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In the latest issue of The Journal of Healthcare Contracting, HIGPA president Curtis Rooney discusses the challenges facing the healthcare supply chain, particularly healthcare reform and specific aspects of the Affordable Care Act, including the medical device tax.
Most importantly, Mr. Rooney addresses the next phase of reform: cost-cutting. Rooney points out that 25% of the federal budget—and growing—is being spent on healthcare. GPOs will be instrumental in cost-containment for the supply chain, benefitting healthcare facilities and their patients. Rooney points out that:
“...To make economies of scale work in an environment featuring lower reimbursement, I predict that the healthcare supply chain will feature further consolidation at every level...GPOs will need to marry their data services to real-time clinical situations for their customers. Wholesaler/distributors will need to harness their existing data to new clinical requirements as well. Survivors will be bigger, more efficient, leaner, meaner and data-driven. All others risk being voted off the island.”