“GPOs continue to bundle unrelated products and companies, execute long-term and sole-source contracts, award no-bid contracts, collect excessive fees, and police the markets for select dominant companies in a way that excludes innovative, cost-effective technologies,” says Leahey. “As a result, patients, caregivers and taxpayers still suffer from the anticompetitive and exclusionary practices of GPOs.”
GPOs currently operate under a legal “safe harbor” exemption from the antikickback provisions of the Social Security Act. MDMA has lobbied for years for legislation to prevent these practices.
“So long as GPOs are allowed to sell restricted access to our nation’s hospitals by collecting payments from the largest vendors, patients, hospitals and taxpayers all will lose out,” says Leahey. “If you repeal the GPO safe harbor, you will take a giant step toward making the health care system more effective and efficient. You will also generate savings.”
Repealing the safe harbor would still let GPOs aggregate their volume on behalf of member hospitals.
For more information, visit www.medicaldevices.org.
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