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FTC, HHS Probe GPO Contracting Practices As Source Of Generic Drug Shortages

 
• By Brenda Sandburg

Contracting practices and lack of competition among large healthcare group purchasing organizations and drug wholesalers – and their impact on the generic pharmaceutical market – are among topics in request for public comments by the agency.

Drug shortage
US FTC and HHS seek public input on how pharma middleman groups may help cause drug shortages • Source: Shutterstock

The US Federal Trade Commission has teamed up with the Department of Health and Human Services in expanding its investigation of group purchasing organizations. The agencies are seeking public input on the contracting practices of large healthcare GPOs and drug wholesalers, two types of pharmaceutical drug middleman groups, and how they may be contributing to generic drug shortages.

In a joint Request for Information issued on 14 February, the FTC and HHS asked for comments, documents and data on the market concentration among GPOs and drug wholesalers,...

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