“It was understood that any risks associated with GPOs could be addressed through the statutory and regulatory requirements of disclosure, reporting, and transparency. It was also well-understood that the mandated disclosure and reporting of cost savings that healthcare providers achieve through the use of GPOs ensured that federal healthcare programs also benefited from lower costs. The report concludes that questions raised about the appropriateness of GPOs with respect to their engagements and payments to vendors and healthcare providers participating in federal healthcare programs are addressed in the law.
The authors also note that some critics of the vendor-based funding model for GPOs have suggested that these payments are anticompetitive, arguing that they may distort a GPO’s purchasing decisions and lead to higher prices, as the fees are passed through to the customers. Kusserow and Herrmann report that Congress rejected these arguments and further legitimized GPOs with specified disclosure requirements and transparency. Congress understood that under current methodologies for paying healthcare providers participating in the federal healthcare programs, potential risks can be avoided with adequate disclosure, reporting and transparency.”
Labels: Congress, OIG, Safe Harbor
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