MDMA Statement on Senator Grassley and GAO Reports Showing No Evidence of Cost Savings by GPOs

WASHINGTON, DC – Mark Leahey, President and CEO of the Medical Device Manufacturers Association (MDMA) issued the following statement regarding reports by Senator Chuck Grassley and the Government Accountability Office that show no empirical evidence of cost savings by Group Purchasing Organizations (GPOs):

"We thank Senators Grassley, Kohl and Nelson for their leadership and work to ensure that patients and hospitals can purchase the best medical products at the best price.  The reports are troubling in that they provide no evidence that GPOs reduce costs or improve a hospital's purchasing power. 

While MDMA supports the ability of hospitals to aggregate their purchasing power, if GPOs are funded by kickbacks from suppliers, this creates an inherent conflict of interest for the GPO, harms patient care, thwarts innovation and increases the cost of care."

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