Department of Justice Approves Joint Purchasing Agreement Between Two Georgia Hospitals

The U.S. Department of Justice announced that it will not challenge a proposal by Memorial Health Medical Center and St. Joseph’s/Candler Health System, both based in Savannah, Ga., to jointly purchase certain medical and surgical supplies, according to a report by AHA News Now.

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Under the proposed agreement, the hospitals would jointly evaluate products, select suppliers and negotiate rates.

The DOJ concluded that the agreement meets “antitrust safety zone” requirements, according to the report. The DOJ’s decision may signal the ability for other healthcare providers to develop collective purchase arrangements in order to reduce costs.

Read the AHA News Now’s report on the DOJ approval of hospital joint purchasing.

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