Device Companies and GPOs: Is a Battle Looming?

This February, Medtronic. announced it was canceling five cardiovascular and orthopedic contracts-reported to be worth $2 billion a year-with GPO Novation, which negotiates deals on behalf of more than 1,600 hospitals. The action has the potential to change how product contracts with hospitals are negotiated, but at this point, it is hard to say if it represents a burgeoning trend that others will follow or just another mêlée in the long history of turbulent device manufacturer/GPO relations.

by Robert Neil

An old battle is being given a fresh look in the health care supply chain as one of the world's largest medical device manufacturers has pulled contracts from the industry's largest group purchasing organization (GPO), which negotiates deals on behalf of more than 1,600 hospitals

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