Hospitals may actually be losing money by purchasing medical supplies and equipment through large buying groups, according to an article in today's New York Times.
The article cites a recent U.S. General Accounting Office study that found that hospitals actually paid more for two products -- pacemakers and safety hypodermic needles -- that were purchased through group purchasing organizations. GPOs were created to save medical equipment buyers money by giving them the economies of scale to negotiate lower prices from healthcare equipment and pharmaceutical vendors.
Purchasing-group executives say the study was flawed because it looked at only two products. Still, the GAO study adds to a growing debate about whether purchasing groups really lower the cost of medical products for the hospitals that own the groups or buy through them, the article states.
The study, which concluded that hospitals may be paying up to 25% more for products purchased through GPOs, is being presented today at a congressional hearing on the operations of the buying organizations.
The two largest such groups, Premier of San Diego and Irving, TX-based Novation, together negotiate contracts on behalf of about half of nonprofit hospitals in the U.S., according to the Times.
By AuntMinnie.com staff writers
April 30, 2002
Copyright © 2002 AuntMinnie.com
