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Criticism of GPOs has Jumped the Shark

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The Journal of Healthcare Contracting recently published a piece from Healthcare Supply Chain Association (HSCA) President Curtis Rooney titled, “Criticism of GPOs has jumped the shark.” The article focuses on the decade-long campaign against group purchasing organizations (GPOs) by fringe elements within healthcare and the ways in which critics have reached their “jump the shark” moment – their move beyond the point of relevance – with attempts to link GPOs to a recent meningitis outbreak in New England.
“What could GPOs possibly have to do with drug shortages and meningitis? Nothing, of course. The true cause of drug shortages is manufacturing problems, disruptions and barriers to entry in getting new suppliers on line when there is a disruption in supply. Drug manufacturers themselves have weighed in and said that GPOs have nothing to do with drug shortages. GPOs are taking a variety of creative and innovative steps to reduce drug shortages...
All independent, empirical, and non-industry analyses of GPOs have found that GPOs deliver billions in cost savings every year to the healthcare delivery system. GPOs deliver the best products at the best value to their hospital, long-term care and healthcare provider partners, and GPO cost savings, administrative structure and business practices have all been thoroughly reviewed by the GAO, DOJ, FTC, the U.S. Supreme Court, the 8th Circuit Court of Appeals, academia and virtually all of America’s 5,000+ hospitals. Even in the face of this overwhelming evidence, there are those on the fringe of the medical device community who will continue to say anything about GPOs simply to give the appearance of impropriety. However, with their latest accusations, they have gone too far and relegated themselves to irrelevance.”
To read more from the article “Criticism of GPOs has jumped the shark,”click here.

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