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Top Lawmakers Call for GPO Investigation

Friday, November 16, 2012  
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In light of the recent meningitis outbreak, top lawmakers including ranking Member of the House Energy and Commerce Committee Congressman Henry Waxman and Co-Chair of the House MedTech Caucus Congresswoman Anna Eshoo have called for an investigation into Group Purchasing Organizations (GPOs) by the Government Accountability Office (GAO).

Members are concerned that GPO contracting practices are causing drug shortages and other impediments to the health care delivery system. Added attention to GPOs was raised in light of the compounding pharmacy that has been linked with meningitis outbreaks resulting in 32 deaths and another 461 cases where patients were sickened. Specifically, the Members are asking the GAO to examine whether "the competitive and budgetary impacts on both hospitals and the Medicare program that could result from eliminating the GPO safe harbor exemption from the Medicare anti-kickback statute."

MDMA will closely monitor the progress of this investigation and continues to work with Members of Congress to remove the hurdles GPOs create for innovative medical technologies to enter the marketplace and improve patient care.

The Members' GAO request can be viewed by clicking here.