Repeal of Anti-Kickback Exemption Is “Only Viable Resolution” for GPO Industry Reform, Study Says

An in-depth analysis of the activities of certain large hospital group purchasing organizations (GPOs) recommends they be stripped of their longstanding protections from federal anti-kickback penalties and antitrust safety zone because of operating practices that have "an adverse impact on the financial health of this nation’s hospitals, nursing homes, and other healthcare organizations."

In a new study, "Group Purchasing Organizations: An Evaluation of Their Effectiveness in Providing Services to Hospitals and Their Patients," the International Center for Corporate Accountability demonstrates that the “only viable resolution” to reforming the GPO industry is to subject it to the discipline of the hospital supply marketplace. Bipartisan legislation to accomplish that goal ("The Ensuring Competition in Hospital Purchasing Act") is sponsored by Sens. Mike DeWine (R-Ohio) and Herb Kohl (D-Wis.) and being considered in the United States Senate. MDMA Supports this legislation in order to ensure patients and caregivers have access to the best products at the best price.