Health Systems Challenge Device Manufacturers Association’s Position on GPOs as Cause of Higher Costs

Fourteen health systems have jointly sent a letter to the chairman of the Medical Device Manufacturers Association challenging MDMA’s  position that group purchasing organizations drive healthcare costs higher, according to a news release from healthcare network VHA.

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The health systems, which are members of VHA, called the findings in a recent MDMA report suggesting healthcare costs would decrease without the involvement of GPOs as “unbelievable.”

 

“Our decades of experience negotiating with manufacturers tell us that it is implausible to think device manufacturers would voluntarily reduce prices for any sustained period of time if GPOs were funded directly by hospitals, as your report suggests,” the hospitals wrote in the letter, according to the news release.

 

The major health systems that sent the letter are: Allina Hospitals & Clinics, Minneapolis; Baptist Memorial Health Care Corp, Memphis, Tenn.; BJC HealthCare, St. Louis; Clarian Health, Indianapolis; Mayo Clinic, Rochester, Minn.; Memorial Hermann Healthcare System, Houston; New York – Presbyterian Hospital, New York; Novant Health, Winston-Salem, N.C.; OhioHealth, Columbus, Ohio; Premier Health Partners, Dayton, Ohio; Providence Health and Services, Renton,Wash.; Spectrum Health, Grand Rapids, Mich.; Sutter Health, Sacramento Calif.; and Yale New Haven Health System, New Haven, Conn.

 

Read the VHA news release by clicking here.

 

View a copy of the letter sent to MDMA Chairman Eamonn Hobbs by clicking here (pdf).

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