Appeals Court Recognizes GPOs Save Money for Hospitals

A federal appeals court has found for the second time that group purchasing organizations save money for hospitals, according to a release by the Health Industry Group Purchasing Association.

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The ruling, in the case of Southeast Missouri Hospital v. Bard Inc., also found that hospital GPO membership is voluntary and that that there is “fierce competition” among suppliers to secure GPO contracts, resulting in hospitals paying 10-15 percent less on average for medical devices and services.

 

Meanwhile, Martindale reported that the ruling affirmed the dismissal of St. Francis Medical Center’s class action against device-maker C.R. Bard, accusing Bard of allegedly inflating catheter prices for hospitals and allegedly violating federal antitrust law.

 

Read the HIGPA release on group purchasing organizations.

Read the Martindale report on Missouri Hospital v. C.R. Bard.

 

Related Articles on the Health Industry Group Purchasing Association:

HIGPA Criticizes Recent Medtronic GPO Contract Cancellations

Study: GPOs Save Money for Hospitals, Especially Small Ones

HIGPA Releases Statement on Role of GPOs in Healthcare Cost Containment, Reducing Budget Deficit

 

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