For the past year, hospital purchasing groups have been under a spotlight, as Senate investigators and major media investigate charges that groups have done more harm than good in favoring large product companies. One of two groups at the center of the crisis, Premier, says it is cleaning up its act-and even hired an ethicist to help-but its take on necessary reforms embraces a broad, big-picture view of hospital/GPO relationships. MedAssets is taking more of a back-to-basics approach that stresses flexibility and choice in contracting options while helping members address the escalating costs of physician preferred products. The challenge for GPOs: the pressure to reform comes at a time when competition for hospital customers is fierce, in part because the financial pressure on hospitals has never been greater.
by David Cassak
As we noted in the first of this two-part series, hospital group purchasing organizations (GPOs) for the past year have faced a scrutiny unprecedented in their nearly 30-year history. Complaints, largely from small suppliers, have made GPO policies and practices the subject of both US Senate hearings and a blistering series of articles in The New York Times